Category: News & Market Reports

Q1 2021 Houston Retail Market Report

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Houston’s vacancy rate increased marginally from 5.9% to 6.0% over the quarter as 263,800 SF of new product delivered. Construction activity remained steady between quarters and retail foot traffic picked up as COVID restrictions in the state of Texas eased. According to Emsi, a labor market data company, Houston’s MSA population grew by 500,885 over the last five years, now 7,172,693, and is projected to grow by 544,540 over the next five years. Total regional employment grew by 74,098 over the last five years, now at 3,350,731, and is projected to grown by 166,496 over the next five years. The top three industries in 20200 were restaurants and other eating places, education and hospitals, and general medical and surgical hospitals. Click to read more at www.coydavidson.com.

First Look: The $500 Million Omni PGA Frisco Resort

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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

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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.

Travis Central Appraisal Districts Says Hot Market is Reflected in 2021 Appraisals

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The Travis Central Appraisal District sent out 2021 notices of appraisal to Travis County property owners in April for a collective $323 billion of appraised value—a 12% increase in its appraisal roll since 2019, when TCAD last updated appraisals. The increase points to a highly active Austin housing market and rapid population growth, a TCAD representative said. “That’s being driven by substantial increases in the residential market. It’s a mixed increase in commercial sectors,” said Marya Crigler, TCAD Chief Appraiser, in a May 4 presentation to Travis County commissioners. While the values for some commercial properties have decreased over the past year—those associated with industries such as hospitality and retail—office buildings have shown moderate appreciation, Crigler said. The value of residential properties, however, has skyrocketed across the board as low housing inventory collided with heightened interest in single-family homes in Austin. From January 2020 to January 2021, the level of housing inventory in Travis County reduced from 1.6 months to 0.4 months. As of March, Austin-Round Rock area home prices had hit a median $425,000, an all-time high. Consequently, residential property owners will see higher appraisals, and will likely pay a larger share of the county’s taxes than in years past. Click to read more at www.communityimpact.com.

Ryan Cos. Announces New SVP Lead for Multifamily in Austin

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Ryan Companies US, Inc., a national developer, designer, builder and property manager offering full-service commercial real estate solutions, announced today the appointment of Jared Kuhn as senior vice president and sector leader of multifamily. This is a new position for the company. Based in Austin, Kuhn will manage the strategic and operational excellence for the company’s multifamily sector, determine the sector’s go-to-market strategy, develop the execution team and serve as the lead executive contact for Ryan’s multifamily customers and equity partners. Significant multifamily projects in Ryan’s portfolio include Aurélien, a 31-story, 368-unit apartment building in downtown Chicago; Harper Apartments, a 163-unit apartment complex in St. Paul, Minn.; The Avalyn, a 480-unit multifamily community in San Diego, Calif. currently under construction; and Daymark Uptown, a two-building, 318-unit apartment community in Minneapolis, Minn. Kuhn, a 20-year industry professional, previously served as group vice president of development at Soave Enterprises. Kuhn earned his Master of Science in Real Estate Development at Columbia University and is an active member of the Urban Land Institute and National Multi-Housing Council.

Foreign Investors Set Their Sights On Austin In A Real Estate Twist, Survey Says

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Austin is the U.S. city with the most interest from foreign real estate investors this year, a new survey found, signifying a shift in investment toward smaller metropolitan areas as the coronavirus pandemic and rise in remote working pushes people out of large cities. Nearly one in four survey respondents ranked Austin as the top market to increase real estate exposure in this year, while a third ranked it within the top three cities, according to an annual survey by the Association of Foreign Investors in Real Estate. Austin’s top ranking is a huge jump for Texas’ rapidly-growing capital city—in last year’s survey, it was ranked just tenth by international investors. It’s the first time a tertiary city, or a smaller metropolitan area, has ever ranked in the top three in three decades of AFIRE surveys, the investment association said, and marks a significant shift in investor interest. More than 60% of survey respondents said they expect to bump up their investment in tertiary cities over the next three to five years, and 80% plan to do the same in secondary cities, or medium-sized metropolitan areas. Investors indicated they are less interested in investing in large cities, like New York and Chicago, which were each ranked as one of the top three markets to lower real estate exposure by more than half of survey respondents, along with more than a third who ranked San Francisco in the top three. Click to read more at www.forbes.com.