First Look: The $500 Million Omni PGA Frisco Resort

Omni Hotels & Resorts has kicked off development of its latest resort, which will sit next to the PGA’s new headquarters in Frisco. The PGA announced in 2018 announced plans to move from Palm Beach, Florida. Its new headquarters will anchor a 600-acre, mixed-use development that will also include three golf courses, a putting green, retail shops, and the $500 million Omni PGA Frisco. (Scroll down to click on an images gallery.) Key players were on hand May 4 to officially break ground on the project. Peter Strebel, president of Omni Resorts, talked about how the deal came together and Omni parent company TRT Holdings’ Bob Rowling, founder, and his son, Blake Rowling, who serves as president. Peter Strebel speaking at Tuesday’s groundbreaking. The Rowlings “live and breathe golf,” Strebel said. “So, when they heard the PGA was thinking of moving its headquarters to Texas, especially Frisco, they jumped all over that, because they knew that that would be a place where they would want to be involved.” As plans progressed, the Rowlings remained fully committed, despite difficulties brought on by the pandemic. “Candidly, I cannot think of anybody who may have had a more challenging year this past year than Bob Rowling,” Gov. Greg Abbott said of the founder of Omni’s parent company, TRT Holdings, at the groundbreaking event. “There probably was no industry in the United States, maybe the entire world, that was more challenged over the COVID year, than the hospitality industry.” Click to read more at www.dmagazine.com.

Kalterra Capital Sells 213-Unit Apartment Complex in Waxahachie

Kalterra Capital Partners has announced the sale of Park Place, a 213-unit apartment complex, located at 240 Park Place Blvd, in Waxahachie, Texas. The project is Kalterra’s second sale this year and one of three ground-up multifamily developments in Kalterra’s portfolio expected to transact in 2021. The 12-acre site falls within the rapidly growing Ellis County submarket, located 30 miles south of the DFW Metroplex. Just east of Hwy 287 and directly adjacent to Waxahachie’s Sports Complex, the project will serve the growing demand for Class-A luxury apartments in the county. Kalterra plans to begin construction on a second conventional multifamily development and an active adult development in Waxahachie this year. Park Place is another example of a successfully executed high-end multifamily product in suburban markets. The multifamily development is the first of three for Kalterra in Waxahachie this year, with more active developments in the works coming soon. The contemporary design includes luxurious interior and exterior finishes designed to meet the needs of diverse professionals seeking high-quality amenities and low maintenance living. The project includes lifestyle-focused amenities such as a resort-style pool, well-appointed fitness center, large dog park, private yards, attached garages, and a walking trail. Premium Property USA also partnered with Kalterra in the closing of Park Place. Kalterra has experienced success due to its ability to develop design-forward communities in key submarkets. The company is building a legacy to challenge the status quo, maintain an investor focus, and move quickly and efficiently to deliver outstanding results to its investors.

Mintwood Real Estate Debuts First Ground-Up Residential Development

It’s early afternoon in the Bishop Arts District on a Tuesday, and it’s easy to see the lure of the North Oak Cliff neighborhood. Parking along North Bishop Avenue is tight as locals wander into shops and fill benches outside of eateries. I meet developers Katy Slade and Nick Venghaus outside of La Reunion, where we order a few glasses of water and iced coffee. The two long-time industry leaders ventured out about two years ago to launch Mintwood Real Estate and, along the way, have put in some groundwork for future projects and helped turn two vacant office floors in Santander Tower into a chic hotel called The Guild. Today, we were there to talk about their first ground-up project. Katy and Nick were both previously at Gables Residential for a little over a decade. She was on the development team, and he was running construction. They did a lot of really cool mixed-use deals, including the Gables McKinney Ave. The duo makes for the perfect partnership as Nick has a great capacity to understand complicated construction projects, and Katy excels at researching and understanding the needs of the market to build innovative projects. It all ties into how they could build 55 units on the site of a former 10 unit apartment building on Melba Street. Click to read more at www.dmagazine.com.

Diamond in the Industrial Rough: The One-of-a-Kind Offering Hidden Along the Texas Border

When you boil down real estate, it really just comes down to three factors: demand, supply, and location. The TexAmericas Center in Texarkana can claim two of those and this summer, when its new 150,000-square-foot spec building is complete, it will hit the trifecta.
Location
Texarkana, which is nestled at the cross-section of Texas, Arkansas, Louisiana and Oklahoma, is an often-overlooked distributor’s dream. Nearly 54 million people live within 500 miles, almost 10 million more than are reachable from the Dallas market. “If your goal is to access a large market, we’re a better fit because we are closer to the population center, as well as the geographic center, of the United States,” says Eric Voyles, Executive Vice President and Chief Economic Development Officer at TexAmericas Center. “Plus, you get to stay in Texas if you operate from here.” TexAmericas Center is a special purpose district of the State of Texas with the mission of redeveloping former military property in Bowie County, including portions of the Red River Army Depot, with the purpose of creating quality jobs for the region “We act as a not-for-profit industrial development and management company,” Voyles explains. Created by the Texas Legislature in 1997 and fully operational by 2000, the organization just marked its 20th year of operation. “What Texarkana needed was product,” says Voyles. “This city is in a great location. It has an available workforce. Our taxes, labor, and utility rates are all well below the rest of the state.” Demand TexAmericas Center delivered that product, becoming a high-quality, value-driven solution for the industrial real estate market. Click to read more at www.rednews.com.

Will Abbott Announcement Spur Dallas’ Return to the Office?

DALLAS — Just because Texas announced plans to rescind its statewide face mask orders, don’t expect to see every company return 100 percent to the office by next week. However, members of the local commercial real estate community are feeling positive about the news. “The governor’s announcement yesterday was extremely well received at our offices. Our office team was buzzing and fist bumps were exchanged when the news came down. It was also well received from our clients. Many … have been wanting to have a good reason to bring more of their people back to the office,” said Tom Lynn, chairman and office division president for NAI Robert Lynn. Local real estate professionals say even before Tuesday’s announcement, most companies had already been slowly returning to the office. Since last year, Dallas has been a leading market for daily office occupancy, according to Kastle Systems. Click to read more at www.12newsnow.com.

“Dallas is a Powerhouse”: Multifamily Experts on Texas’ Hottest Markets

The thing about Texas is people want to live here. Proof is in the numbers. For the past several years, the state has been at or near the top of U-Haul’s annual migration report, a breakdown of the states on the receiving end of the most one-way moves. When they get here, those folks have to find a place to call home, a certainty that has helped the multifamily industry flourish. “Texas is a right-to-work state. It has a lower cost of living compared to states such as California or New York. There’s no state income tax. Someone can have a very high quality of life here at a bargain compared to some other markets,” said Jon Krebbs, managing partner of The Multifamily Group, a commercial real estate brokerage firm based in Dallas. “As long as there are jobs being created, you’re going to see a lot of activity from apartment developers and a lot of demand from apartment buyers.” That demand pushed sales volume for The Multifamily Group to record levels in 2019, the firm’s highest-grossing year ever. Things were looking up in early 2020 as well.

“The uncertainty that hit in March killed several of our deals that were either under contract or under letters of intent,” Krebbs said. “Everybody hit the brakes for a couple months.” Mark Allen, executive managing director, Greystone Investment Sales Group, attributes that pause to investor concern about rent collection. “After rent collections were proven stable, the challenge shifted to buyers finding deals as the demand far outpaced the supply on the market,” Allen said. While sales slowed, they never stopped completely. The new environment created a number of obstacles, but firms like Greystone, The Multifamily Group and Avid Realty Partners pressed forward. “On the operational side, we’ve seen fewer tenants leaving, fewer tenants moving in and less turnover,” said Craig Berger, Avid Realty Partners’ founder and CEO. “We also observed that, due to financial hardships, folks moved back in with family or brought roommates, so the number of people renting consolidated a bit.” The response by many properties, he said, was to offer concessions—such as reduced rent or a rent-free month—to drive occupancy and stay full. Meantime, multifamily pricing went up due to lower interest rates ramping up purchase power. “You’re discounting cash flows at a lower interest rate, so that makes asset prices go up,” Berger said. “We were doing virtual tours while trying to educate our owners about prospects. Buyers still had to go in every unit, and we had to make sure everyone was outfitted with personal protective equipment when they did. It was a logistical challenge to get the due diligence done,” said Krebbs, who added that his firm would consider 2020 a successful year based on its completed transactions in Texas, Oklahoma and Arkansas. “Like all multifamily brokerages, we had to get as creative as possible to help buyers and sellers close out transactions during the stay-in-place orders,” Allen said. “Multifamily owners had to adapt from an operational perspective. Whether they were communicating with residents differently, altering their marketing strategy to fill vacancies or shifting their maintenance work order operating procedures, 2020 wasn’t without its challenges.” Challenges or not, Greystone made the best of the situation. Allen said his team’s sales volume and number of transactions increased from 2019. “I’d likely attribute that to continuing to work hard through stay-in-place orders and continued maturity of our team,” he said. The lessons learned in 2021 are now being carried into 2021 as the market gets closer to normal. “Folks are sort of getting off the sidelines and buying and selling again, which is great,” said Berger. Though Texas as a whole is a promising market for multifamily investors, two cities stand out as offering exceptional opportunities. “In Dallas, we had an influx of new and existing residents from states with much more government control and restrictions, and less affordability,” Allen said. “Texas is a very business-friendly state relative to many others across the country; you can get twice the size of house in Texas for a fraction of the cost, and pay no state income taxes. Also, we have a very diverse economy and very low unemployment metrics relative to other Texas and U.S. cities.” “Dallas is a Fortune 500 and Fortune 5,000 powerhouse,” said Berger. “Because so many companies and people are moving to cities like Dallas or Austin, those are the places where I want to invest my money. I know there will be future growth.” Prices certainly reflect the increased interest in those in-demand markets, but Krebbs and the Multifamily Group have their eye on the San Antonio area. “In Houston, Austin or DFW, you’re looking at $90,000 to $100,000 a unit for a Class-C property,” he said. “But in San Antonio, the rents just aren’t as high, so you can still get a property for about $65,000 a unit.” Krebbs notes that, like other Texas cities, San Antonio is a steadily growing market, drafting off the winds of Austin and its location in the middle of the state. “At The Multifamily Group, we don’t see any headwinds to multifamily investing in Texas,” he said. “There’s just too much job growth.” That’s just one of the fundamentals that remains strong, setting up 2021 as an incredible time to buy multifamily in DFW. Allen also points to the spread between treasuries and cap rates being the widest since the “Great Recession.” “Investors sitting on the sidelines the last three to four years because prices are too high have missed out on an incredible opportunity of growth,” he said. “There was $4 trillion on the sidelines last year, so there’s plenty of pent-up demand still. With the discussions on further fiscal and monetary stimulus, a declining U.S. dollar, and inflation in the short term, I only see the market going one way in 2021 … up!” The issue of inflation is an important one that helps distinguish multifamily from other CRE investments. “In multifamily, you can keep pace with inflation. If the market is hot, it’s a free market. Your leases are typically a year, so you can go out and rent apartments at market rates that could be well in excess of 1.5 percent to 2 percent growth that you’re seeing in net lease properties,” Berger said. “So as inflation heats up, multifamily apartments tend to be a tremendous hedge against that inflation.” Everything is bigger in Texas, including the opportunity for multifamily investment as more and more people make the move to call the Lone Star State home.