JLL Capital Markets arranged a $49.1 million refinancing for the Millennium at Hometown, a to-be-completed, Class-A, multi-housing project comprising 306 apartments and 11,697 square feet of retail located at 6021 Parker Boulevard in North Richland Hills, Texas. JLL worked on behalf of the borrower, Sovereign Properties, to secure the floating-rate loan with Asia Capital Real Estate (ACRE). Construction is nearing completion with the first building projected to receive occupancy in December 2020. The development is in DFW’s burgeoning North Richland Hills submarket at the intersection of Grapevine Highway and Precinct Line Road. This area has seen a total rent growth of 30 percent since 2010, all while maintaining average occupancy of 94 percent. The area has also become a robust employment hub, with over 70,000 residents, 1,200 businesses and 30 major employers, including a surge in headquarter set ups from companies like Tyson and XPO Logistics. JLL’s Capital Markets team representing the borrower was led by senior managing director Greg Nalbandian and director Jesse Wright. According to JLL, this bridge loan was signed up during the height of the COVID pandemic, illustrating the strength of the multi-housing capital markets and the liquidity that continues in this sector for well-conceived projects during highly challenging macroclimates. “We pride ourselves on our ability to provide institutional developers the liquidity needed to execute on their business plan, especially in tough market environments,” said Daniel Jacobs, Head of Origination at ACRE. “JLL was instrumental in structuring this deal, and we are confident that it will set Sovereign Properties up for success at Millennium Hometown.”

The City of Garland and GroundFloor Development have partnered to realize a $30 million commercial redevelopment project for the west side of downtown. Over the past two years, both parties have been actively working on this very challenging, but exciting major reinvestment project to be constructed on the northwest corner of South Garland Avenue and West Avenue B. Representing the first phase of what is intended to be a much larger mixed use development, this sizeable anchor investment will launch the transformation of the entire block into a modern residential, retail and services hub in a part of downtown that has thus far struggled to realize its full redevelopment potential. In total, the approximately 4-acre site is currently home to Chase Bank, a vacant former Wyatt Cafeteria, Commonwealth Land Title Company and a few other small businesses. Phase I will consist of demolishing the 11,000 square foot former cafeteria building and replacing it with much denser new construction in the form of The Draper, a three-story, 155-unit residential complex. As perks for future residents, the new apartments will include a community-oriented amenity center, an outdoor pool, as well as “tuck-under” garages. Looking to Phase II of the project, plans call for the existing 5-story, 1960s-era Chase Bank building to be fully renovated for new tenants, with Chase Bank remaining as the primary retail services anchor. Upon completion, the center will be a modern mixed use housing development, to which GroundFloor is rapidly realizing a strong development and market specialty in Texas. Case in point, the company is currently working on a sizeable mixed use development in Austin set to open soon, which will include a public market surrounded by a new hotel and office space. “We have big plans for The Draper, and we’re envisioning a renewal of Garland’s West downtown commercial activity while catalyzing future growth,” said Mark Drumm, a partner with GroundFloor. “Partnering with the City, we hope to add another successful modern housing development to our portfolio in Texas.” The Draper will be a community-oriented living space geared towards professionals who are seeking a more urban living lifestyle in a centralized community location. Residents will be walking distance away from various shops, restaurants and entertainment venues on the Downtown Garland Square. They will also be close to the Downtown Garland DART light rail station, where residents will have access to the greater D-FW Metroplex. “After many months of hard work, we are extremely excited to see The Draper finally come together and look to provide the west side of Downtown Garland with a much needed development catalyst project. We’re happy to support GroundFloor with this first phase, especially as we seek to further focus our efforts on redevelopment projects in the City’s historic downtown core,” said David Gwin, director of Garland’s Economic Development Department. Major redevelopment projects have been on the city’s radar for a while, as Garland continues to mature and is now largely built out particularly in the central core of the community. Recent residential redevelopment in downtown include the City Square Lofts off of Avenue B and Glenbrook in the former Bank of America building. This project resulted in the entirely repurposed 4-story office building into the now 126-unit apartment complex, while increasing the site’s real estate value from $460,000 to $7 million.

To Date, The JV Partnership has invested $50 million in Almost 700,000 SF of North Texas Industrial Space

With the latest acquisition of three additional buildings in the IH-20 West Business Park, Fort Worth-based Corinth Land Co. and Dallas-based Prattco Creekway Industrial (PCI) now own nine of the business park’s 30 buildings or 30 percent of the complex. The latest acquisitions include 6575 Corporation Parkway (39,500 square feet); 6590 Corporation Parkway (17,000 square feet); and 6656 Corporation Parkway (15,000 square feet). All are 100 percent occupied by Summit Casing. The purchase was financed by Veritex Bank with equity provided by Western Production Company and PCI. “We continue to be strategic in our acquisitions in Fort Worth and North Texas in general,” Corinth Land Co. President and Founder Paun Peters said in a news release. “When you consider the magnitude of Walsh Ranch and other key developments planned for the area, investing in this space continues to meet our short and long-term indicators.” This is the ninth partnership acquisition for Corinth Land and PCI, marking an investment of $50 million and approximately 700,000 square feet of industrial space in North Texas. “Industrial development and investment continue to be a strong sector, despite the economic challenges that the pandemic has brought to 2020,” Lance Bozman, PCI managing partner, said. “We look forward to even more opportunity for industrial investments in 2021 and hope for brighter macro-economic days ahead.” Founded by Peters in 2006, Corinth Land Co.’s initial focus was providing oil and gas surface sites and easements in the Barnett Shale. Peters sold the company’s holdings in 2016 and is now focused on the acquisition, development and operation of commercial and residential real estate assets in strategic locations throughout the DFW area, Texas and North America.
PCI Managing Partner Lance Bozman was formerly a managing director of a $1 billion AIG/Lincoln portfolio that comprised 4 million square feet of industrial and commercial investments. PCI Managing Partner Chad Lunsford spent 20 years at GE Capital Real Estate and has a deep background in risk management, underwriting and operations serving in various management and leadership positions.

For more information: www.corinthland.com or www.prattcocreekway.com

The 439,801 square-foot Oil & Gas/Star–Telegram Buildings in the Fort Worth CBD are up for sale. Offered exclusively by Younger Partners’ Scot Farber and Tom Strohbehn, the towers give investors the opportunity to acquire two historic buildings in one of the region’s most closely held real estate markets. Located at 307-309 W. 7th Street, the towers are 16 and 19 floors respectively and were built between 1929 and 1954. The property is 59 percent leased to a diverse tenant mix that is anchored by a long-term lease with the GSA (Housing and Urban Development). “The two-tower complex is a stunning example of art deco and gothic design,” Farber said. “Located in the thriving Fort Worth CBD adjacent to the renowned Sundance Square, the property presents a compelling combination of stabilized office space and the value-add opportunity to alter an existing use and reposition one of the buildings to mixed-use by including multifamily or hospitality.” “With in-place rental rates that are well below market average, the strength of the area office market provides sound upside potential through repositioning and lease-up of the vacant space and renewals at significantly higher rental rates,” Strohbehn said. The property offers investors a unique chance to expand current holdings or get a foothold in the dynamic downtown Fort Worth market. The buildings epitomize a “live, work, play” environment with their location within walking distance of all of downtown Fort Worth. It is just a short drive from the Fort Worth Convention Center, historic Fort Worth Stockyards and the wealth of amenities and entertainment destinations of Sundance Square.

E&A TransPros Inc., an Illinois-based logistics firm, has landed in 19,643 square feet of industrial space, expanding at a new location closer to Dallas/Fort Worth International Airport. The firm is settling into Prologis’ Hanover 4 at 801 Hanover Drive in Grapevine, Texas. E&A has relocated from Carrollton to a project that’s less than four miles from the airport’s northern entrance. “Being close to the airport was crucial for E&A. There weren’t a lot of options that met our client’s criteria,” said Joe Santaularia, first vice president of Dallas-based Bradford Commercial Real Estate Services. Santaularia and Brock Wilson, senior vice president and managing partner with Bradford Commercial Real Estate Services, represented the tenant. Gil Stroube of Lincoln Property Co. represented the landlord. E&A had been searching the DFW Airport submarket for the past year, seeking distribution center space with ample dock doors. The pandemic sidelined the hunt until a few months ago. “We started looking again and before long we came across this vacancy,” Santaularia said. “The airport submarket is really tight for spaces below 70,000 square feet.” E&A signed a long-term lease and was quickly up and running at its new location. The 151,335-square-foot building is one of three in the Prologis project, situated close to the TX 114-121 junction. Additionally, Sector 5 Digital LLC has renewed 8,515 square feet of flex office space in Centreport Place II, 4300 Amon Carter Boulevard, Fort Worth. Jim Ferris, vice president of Bradford Commercial Real Estate Services, represented the tenant. Michael Pienado of Lincoln Property Co. represented the landlord, Columbia Texas Amon Carter Industrial LP.