TFH Reliability Group Inks New Lease at Sam Houston Crossing II

Transwestern Real Estate Services (TRS) announced that TFH Reliability Group LLC has signed a new lease for 14,861 square feet at 10344 Sam Houston Park Drive in Houston. Transwestern managing director Doug Little, senior vice president Louann Pereira and senior associate Matthew Seliger provided agency leasing services on behalf of the landlord, Buchanan Street Properties. Patrick Wolford and Travis Taylor of Lee & Associates and Robert Parsley and Chris Nash of Colliers International represented TFH Reliability Group. “We are extremely pleased to sign a new lease with TFH Reliability Group as a valued tenant in Sam Houston Crossing II,” said Mark Oddo, senior vice president at Buchanan Street Partners. Sam Houston Crossing II is a 159,056-square-foot, Class A suburban office building designed to LEED-certified standards to achieve sustainable development, maximize energy efficiency and water savings, and create a healthy work environment. The space incorporates modern exterior and interior architectural design to maximize efficiency and space utilization, which results in low add on factors. The building features a dramatic, two-story glass lobby with high-quality finishes and materials. Located on the frontage of Sam Houston Tollway, Sam Houston Crossing II boasts unrestricted visibility and provides outstanding branding opportunities to tenants. The property is managed by Transwestern.

Bradford Commercial Real Estate Services Inks Two Deals at Dallas Office Property

Bradford Commercial Real Estate Services/CORFAC International facilitated two office leases at Merit Tower, 12222 Merit Drive in Dallas. Jared Laake, vice president of Bradford Commercial Real Estate Services, represented the landlord, LLL Four Forest LLC, in both transactions. DII Asbestos Trust, represented by Brenda Ridnour of Pickens Ridnour LP, leased 8,521 square feet of space. Separately, Gary Krajecki of PalmerHouse Properties represented TRUE Space Inc. in their 1,120-square-foot lease.

Younger Partners Brokers 68-Acre Sale Outside of Dallas

SVM Estates acquired 67 acres on the west side of Highway 377, north of Shawnee Drive in Tioga, Texas, about 60 miles north of Dallas. Terms of the deal were not disclosed. Younger Partners’ Ben McCutchin represented the seller, Gene McCutchin, in the sale. The land, which is adjacent to the new Tioga High School and currently serves as grazing pasture, will be held for future investment.

Construction Wraps on Austin’s 308-Unit Citadel at Tech Ridge

Inland National Development Company (INDC) and co-developer, Cambridge Development Group, announced that construction of North Austin’s newest luxury multifamily community, Citadel at Tech Ridge, was completed in June 2020 ahead of schedule and under budget. Additionally, at the end of August 2020, 62 percent of units had been leased and 170 units were occupied. Citadel at Tech Ridge is located on 14.8 acres at 1127 Pearl Retreat Lane, in the heart of North Austin’s Tech Ridge. This luxury, Class A gated community consists of one-, two- and three-bedroom residences, totaling 308 units in 12 three-story stone and wood frame buildings. Each unit features an open floorplan design with in-unit washers and dryers, designer lighting, Energy Star appliances and private balconies or patios. Community amenities include a resort-style swimming pool, dog park, pet spa, electric vehicle charging stations, a clubhouse with a cybercafé, resident lounge and state-of-the-art fitness center. Citadel at Tech Ridge also benefits from close proximity to I-35, a CapMetro Park and Ride location and leading grocer, H-E-B. “Austin’s vibrant Tech Ridge neighborhood is a highly desirable, rapidly growing location, drawing thousands of new residents annually,” said Anthony Casaccio, president and CEO of INDC. “Our teams worked tirelessly against a challenging environment to deliver Citadel at Tech Ridge to North Austin’s surging population ahead of schedule. Our leasing figures underscore the considerable interest and desire residents have to live in this upscale, luxury community.” Citadel at Tech Ridge is located just east of the Tech Ridge Business Park and less than one mile from the 400-acre master planned Parmer Business Park, a technology and office park experiencing tremendous growth with the addition of BAE Systems’ $150 million facility. Additionally, the recently announced Tesla “Gigafactory” is under development in Southeast Austin, approximately 11 miles south of Citadel at Tech Ridge. North Austin is also home to major employers such as Samsung, General Motors (IT Division), Dell Computer, Apple, IBM and others.

Now’s the Time to Invest in Texas

“I love Texas right now.” Alfredo Gutierrez, founder of SparrowHawk Real Estate Strategists, didn’t mince words. His firm specializes in the industrial market and the Lone Star State, he thinks, is the place to be. “With everything that’s happening with e-commerce right now, it’s ready to go,” Gutierrez said. Look to Central Texas for proof. When the pandemic hit, online retail quickly became an essential part of everyday life. “We have seen major e-commerce tenants and last-mile distributors scramble to secure quality infill warehouse space and expand into developing parts of the city,” said Kevin Cosgrove, vice president of Stream Realty Partners. “Many companies have decided to outsource their distribution/final mile operations to 3PL providers in the near term.” He also expected an influx of auto-related distribution and light manufacturing requirements in San Antonio in the next few months after Tesla announced it would open its Gigafactory in Austin, what Cosgrove called “a huge win for the region.” Today’s market may have been what CRE insiders hoped for, but few could have predicted the rollercoaster that was the first half of 2020. “We experienced record positive absorption in 2019 and steady rent growth in our core submarkets, but understood that we could be facing a downturn after a decade of economic growth,” Cosgrove said, explaining why Stream was cautiously optimistic heading into this year. Just in the past month, he listed 4958 Stout Drive, a 102,000-square-foot industrial space just east of downtown San Antonio. In addition to its prime location near the I-10 and Loop 410 interchange, the building is 100 percent climate controlled and offers tenants the ability to utilize an adjacent 2.5-acre fenced yard. The industrial market is slightly cooler in Houston, according to Robert Wheless, Logistics Property Company’s (LPC) senior vice president for the south region. “Corporate tenant prospects have extended their timelines for committing to leases,” he said. “These prospects are not cancelling their property searches or evaluations, just extending the date for making a commitment to lease. LPC is charging forward and can boast tenant prospects for all of the approximately 900,000 square feet of industrial space it plans to deliver to the Houston market. The projects are underway in two industrial parks, CityPark Logistics Center and HITC Logistics Park, located in the Southwest and North submarkets, respectively. The lone challenge Wheless said he’s observed is an abundance of 650,000-square-foot facilities. By his count, there are seven in the market. “These buildings were constructed to attract e-commerce users,” said Wheless. “Thus far, only a few e-commerce-related users have appeared in the market. Amazon is by far the largest, with five buildings of various sizes.” While distribution for e-commerce, such as Amazon, is certainly a driving force in the industrial market at the moment, Wheless said healthcare, residential building products and commodities are as well. That variety is part of the reason Gutierrez is all in on Texas. He says Dallas has an advantage as a regional hub, while Houston is well-suited to attract a qualified industrial workforce. “I call them near-collar workers. They’re not blue-collar or white-collar, they’re somewhere in between,” Gutierrez explained. “With the oil industry cutting back, you have educated people who are in a position to make a move to industrial.” He also pointed to border cities, such as Laredo, as nearshoring intensifies. “There’s just so much going on here,” said Gutierrez. “That’s why I think now’s the time to invest in Texas.”