SPI Advisory invests in property in the suburbs south of Austin

SPI Advisory (SPI) and its 1031 partners finalized the acquisition of The Bradford, a 264-unit, Class A- institutional-quality, value-add apartment community built in 2010 in the high-growth suburb of Buda, Texas, just a 20-minute drive south of Downtown Austin. This acquisition highlights SPI’s continued expansion in the submarket as one of Hays County’s largest landlords with nearly 1,100 units owned and operated between Buda & Kyle.

The area within a three-mile radius of The Bradford experienced a 159% increase in population over the past decade but Hays County has been identified as one of the fastest-growing counties in both Texas and the nation (U.S. Census Bureau; The Greater Austin-San Antonio Corridor Council, 2022).

Previous ownership upgraded a handful of the property’s existing units with premium finishes, appliances, and more contemporary design elements. SPI will continue programmatic upgrades to a handful of units per month for the next two years but intend to leave 50% of the property with affordably priced “classic” units to serve a broader range of prospective tenants long term. 

STRIVE negotiates sale of 94,294-square-foot shopping center in Texas

STRIVE brokered the sale of Village Real Shopping Center in Webster, Texas.

The 95% occupied 94,294-square-foot retail center is positioned near El Camino Real and NASA Parkway. It is located less than two miles from NASA Johnson Space Center and Houston Methodist Clear Lake Hospital.

Jake Dutson of STRIVE represented the seller and found the out-of-state buyer.

Marcus & Millichap sells 22,350-square-foot retail center in Houston

Marcus & Millichap negotiated the sale of Yorktown Crossing, a 22,350-square-foot retail center in Houston.

Justin Miller, senior vice president investments and John Wagner, associate in Marcus & Millichap’s Houston office, had the exclusive listing to market the property on behalf of the seller, a private out-of-state investor.  The buyer was a Houston-based private investor.

Yorktown Crossing is located at 5537 Highway 6 N. in Houston. The center is fully occupied and sits on a 2.58-acre parcel. It includes a diverse mix of 12 tenants, all featuring triple-net leases.

JLL provides $430 million refinancing for 37-story hotel in downtown Austin

JLL’s Capital Markets group arranged a $430 million refinancing for Fairmont Austin, a 37-story luxury hotel in downtown Austin.

JLL Capital Markets represented Manchester Financial Group in securing the five-year, interest only fixed-rate SASB CMBS loan, with Goldman Sachs acting as a lead manager and sole bookrunner. The all-mortgage financing package was used to replace a $300 million senior loan and $125 million of mezzanine debt.

Fairmont Austin spans 1.4 million square feet, standing proudly as the city’s fifth-tallest building. Developed by Manchester Financial Group, the luxury hotel first opened in 2018 and features 1,048 guestrooms and suites, nearly 140,000 square feet of meeting space, a full-service spa, five curated food and beverage outlets, an outdoor resort-style pool deck on the 7th floor and a grand pedestrian walkway providing direct access to the Austin Convention Center. Located at 101 Red River St., the property is within walking distance to the city’s premier lifestyle and entertainment areas including Rainey Street, East Austin and two blocks from Lady Bird Lake.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Tim Wright, Senior Managing Director Aldon Cole and Director Olga Walsh.

Partners Real Estate helps bring dental business to Texas shopping center

Partners Real Estate arranged a 2,200-square-foot retail lease with My Dental at the Commons at Rivery, a 34,200-square-foot shopping center at 1313 Williams Drive in Georgetown, Texas.

Partners’ Kevin Murphy represented the landlord, Partners, in the transaction. Kelly Arnold represented the tenant in the transaction.

The Commons at Rivery, developed by Partners Finance, is an open-air concept that encourages social gatherings with its large connected patios. This vibrant space offers a live, work, play environment, making it a perfect spot for those seeking a balanced lifestyle. Situated near The Summit at Rivery Park, it provides direct access to downtown Georgetown, one of the fastest-growing cities with a population over 50,000.

JLL report: Larger office projects still breaking ground in Dallas-Fort Worth market

While other markets have seen office construction dry up, the Dallas market is an exception: As JLL says in a second-quarter report, larger office developments are still breaking ground in the city and its surrounding communities.

Examples? JLL points to Bank of America Tower Parkside and The Knox office projects that delivered in the Dallas market in the second quarter. JLL reported that the office development pipeline here stood at more than 5.1 million square feet even as other markets across the country have seen dramatic slowdowns in new office construction.

Overall, JLL says, the fundamentals of the Dallas office market remained consistent throughout the second quarter of the year. The market has seen improved absorption numbers and a healthy leasing volume.

This doesn’t mean, though, that the Dallas office market isn’t facing challenges. JLL reported that the total office vacancy rate in the Dallas office market stood at 26.6% as of the end of the second quarter.

That is only a small increase, though, from the 26.3% office vacancy rate in the first quarter of the year, JLL reported. And much of the office vacancy is concentrated in a small portion of buildings, with JLL research indentifying that nearly 60% of vacancies can be found in just 10% of area office buildings.

The Class-A direct asking rent did rise, though, to an average of $38.81 a square foot in the second quarter. The overall office direct asking rent stood at an average of $35.25 a square foot in the second quarter.

Notable new office leases in the second quarter include Santander’s renewal for 211,087 square feet at Santander Tower, Onsemi’s 97,496-square-foot lease at 505 Millenium and Jones Day announcing its 73,000-square-foot relocation within the Harwood District to the soon-to-be-built Harwood No. 15.

JLL said that tenants are continuing to evaluate their office space needs, something that is influencing average lease sizes and lengths. According to JLL’s report, office leases of less than 5,000 square feet continue to make the majority of deals signed in the Dallas-Fort Worth market, with 578 of the quarter’s 685 tracked leases falling in that range.

Ray Catlin hired at LGE Design Build

Southwest design-build construction firm LGE Design Build (LGE) announced the appointment of Ray Catlin as its new regional vice president, overseeing its Texas headquarters and portfolio. Catlin will be responsible for expanding LGE’s business and impact in the region through strategic leadership and operational management of all construction, preconstruction and sales activities—ensuring projects are delivered on time, within budget and to the highest standards of quality and safety.