Category: News & Market Reports

CenterPoint Acquires Last-mile Portfolio

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CenterPoint Properties has acquired five last-mile sites. The portfolio includes one Houston property, in addition to five more in Long Beach, California. The off-market portfolio sale closed for an undisclosed sum. The Houston property is a 10.5-acre pipe yard, which incorporates a 10-year leaseback, in addition to a nine-year lease extension on an existing CenterPoint building across the street at 8900 Railwood Drive. The properties are just five miles from the I-610 East Loop and eight miles from the Port of Houston. CenterPoint now owns 38 assets in the Houston market. “We have strong momentum going into the fourth quarter. CenterPoint has closed on $1.3 billion in acquisitions over the past 15 months and $595 million just since March 2020,” said Ryan Dunlap, CenterPoint senior vice president of investments. The seller was a CenterPoint tenant, Ta Chen International.

Turning a Dead Mall into a Warehouse will Slash its Value as Much as 90%, Barclays Predicts

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In the coming years, hundreds of America’s roughly 1,100 malls are expected to shut, as retail, restaurant and movie theater closures pile up, and more people favor shopping on the internet over heading to the store. Property owners are going to be tasked with giving dead malls a new life. But the future prospects — fulfillment centers, apartment complexes, schools or medical offices — could mean massive writeoffs in property values, according to a new Barclays report. Turning a shuttered mall into an e-commerce warehouse or a residential complex could reduce the value of the property anywhere from 60% to 90%, Ryan Preclaw, a research analyst at Barclays, told CNBC’s “Worldwide Exchange” Thursday morning. While the land that malls sit on may offer better recovery values if it is used for a mixed-use development, he said, historically that has only happened for about 15% of former malls. The turmoil hitting the retail industry, which has been accelerated by the coronavirus pandemic, creates a ripple effect for malls. When an anchor tenant like a department store closes, shopper traffic at the mall tends to drop by about 10%, Preclaw explained, setting off a “tipping point” for the property, as other retailers in the mall look to leave. Click to read more at www.cnbc.com.

Stream Realty Partners Inks Five Houston-area Deals

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Stream Realty Partners recently facilitated five industrial leases in the Houston metro. Purchase Green leased 10,800 square feet at Long Point Business Center, 6600 Long Point Road in Houston. James Mashni and Patrick Mckiernan with First Houston Properties represented the tenant. Garret Geaccone and Boone Smith with Stream Realty Partners represented the landlord, Agellan Commercial REIT. Kuubix Energy leased 7,670 square feet at Corporate Park, 12603 Executive Drive in Stafford, Texas. Brandi Downey with DiverseCity Realty represented the tenant. Garret Geaccone and Boone Smith with Stream Realty Partners represented the landlord, Alpha Industrial Properties. Zeno Truck Parts signed a lease of 5,821 square feet at Greenbriar Business Park, 4007 Greenbriar in Stafford. Dylan Stiteler with Oxford Partners represented the tenant. Garret Geaccone and Boone Smith with Stream Realty Partners represented the landlord, DRA Advisors. R. Stahl, Inc. renewed its lease of 70,280 square feet at Freeport Business Center, 13259 N Promenade Boulevard in Stafford. Bob Berry with Savills represented the tenant. Jeremy Lumbreras and Boone Smith with Stream Realty Partners represented the Landlord, DRA Advisors. Nice Moves renewed and expanded its lease of 22,500 square feet at Long Point Business Center, 6600 Long Point Road, Houston. Hunter Johnston with Bridge Commercial Real Estate represented the tenant. Boone Smith and Garret Geaccone represented the landlord, Agellan Commercial REIT.

Proposed $1 Billion Development with Hotel, Residences, 4-acre Crystalline Lagoon Coming to Leander

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Leander Springs, a 78-acre, mixed-use project with retail, restaurants, entertainment, hospitality, office and residential components, is coming to town, Leander Mayor Troy Hill announced Oct. 15. Located at the southwest corner of FM 2243 and 183A, expectations are that a fully developed Leander Springs could be valued at $1 billion, according to the city. As part of an economic development agreement with Leander Springs LLC, the city approved up to $22 million in performance-based tax incentives for the project, which promises to construct a 4-acre crystalline lagoon powered by Crystal Lagoons technology and surrounded by 10 acres of boardwalk and related amenities. The lagoon will be filled only once and operate in a closed circuit to ensure sustainable use of water. The public-access lagoon will serve as the centerpiece for more than 1 million square feet of commercial development, including a full-service hotel and conference center planned for the property. “This dynamic mixed-use development is a game changer for our community,” Hill said in a release. “Leander Springs has a phased approach that will bring in much needed commercial development at the beginning of the project while incorporating residential uses in a proportional manner.” Click to read more at www.communityimpact.com.

Austin Self-storage Acquisition Financed

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JLL Capital Markets has arranged financing for the acquisition of a newly constructed 1,152-unit, CubeSmart-branded self-storage facility in Austin. JLL worked on behalf of the borrower, South California-based Greens Global, to place the five-year, fixed-rate loan with Happy State Bank. Greens Global purchased the asset from CSW Development in an off-market transaction initiated by the borrower. Completed in September 2019, the 110,505-square-foot building houses all climate-controlled units along with retail and office space for operations. The five-story property is outfitted with modern security features. Located at 8023 W. Parmer Lane in the northern part of Austin, the facility is surrounded by a growing population of nearly 90,000 residents within a three-mile radius. Additionally, the property is immediately adjacent to hundreds of multi-housing units and single-family homes. The JLL Capital Markets Debt Placement team representing the borrower was led by senior director C.W. Sheehan and analyst Alastair Barnes “The acquisition of the CubeSmart on Parmer Lane is a great first asset in Austin for Greens Global and is an expansion of their self-storage portfolio from California,” Sheehan said. “The asset is located on a heavily trafficked corridor with great visibility and just a stone’s throw from the new tech campus and across from Robinson Ranch.”

Stan Johnson Company Brokers $6M Sale of Newly Constructed Harbor Freight Tools in Fort Worth

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Stan Johnson Company has completed the sale of a freestanding retail building located at 3569 Northwest Centre Drive in Fort Worth. The 16,000 square-foot property was built in 2020, and it is fully leased to Harbor Freight Tools. Stan Johnson Company’s Mike Sladich, Joey Odom, Maggie Holmes, and Mollie Alteri represented the seller, a developer based in South Carolina. Jimmy Ullrich of Stan Johnson Company represented the South Florida, 1031 exchange buyer. The property traded at a 5.90 percent cap rate for nearly $6 million. “Harbor Freight Tools is a rapidly expanding tenant that has thrived during COVID-19, and this sale sets another benchmark for ‘essential retail’ cap rates,” said Sladich, senior director and partner in Stan Johnson Company’s Atlanta office. “We have continued to receive significant demand from buyers for this sector and expect cap rates to remain aggressive.” The property was built on 1.62 acres and opened in summer 2020. It features a long-term double net lease and is backed by a corporate guaranty.