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The Austin-San Antonio Deal Sheet

NorthMarq managing director Bryan Leonard arranged $6M in acquisition financing for Fairview Shopping Center, a 29k SF retail property on I-10 West in San Antonio.

The transaction was structured through Nationwide (at a historically low interest rate, Bryan says) with a 10-year term and 25-year amortization schedule. Bryan tells us it's notable that institutional capital sources have a focus on San Antonio and some are underweight from a portfolio standpoint in commercial real estate here. As a consequence, he expects to be active with those sources for all types of commercial real estate financing.

EXECS

Patrick Short joined ARA Newmark as managing director and part of NGKF Capital Markets in Austin. The former BMC Capital VP has over 13 years of experience in real estate finance.

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World Class Capital Group founder/CEO Nate Paul was named an emerging leader in real estate in Real Estate Forum Magazine. World Class was also recently ranked 66th on the national real estate retail owners list and 74th on the top retail property managers in America list. Nate is only 28 but has 10 years of commercial RE experience; he founded World Class in ’07, and it now owns/operates 8.5M SF nationwide, valued over $600M. It’s currently developing a large multifamily project in Austin’s CBD and is on track to acquire $500M to $750M in 2015. Nate also founded/owns Great Value Storage, one of the largest privately owned self-storage companies in the US with over 25k units nationwide.

SALES

Buchanan Street Partners purchased San Pedro Plaza, a 164k SF office building in San Antonio. It’s extensively improving the property by removing an adjacent retail building to provide more convenient access and additional surface parking and upgrading the lobby, restrooms and common areas. San Pedro Plaza is 30% vacant. This is Buchanan Street’s fifth property in San Antonio (it recently did a similar renovation program at The Pyramid and boosted occupancy to 95%); it’s becoming increasingly active in Texas and is looking for more core-plus and value-add acquisitions. CBRE’s Barbara Emmons and Todd Mills repped the seller, and Buchanan Street repped itself.

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Leon Capital Group (partnering with Move-It Management) acquired A-A-A Storage in Liberty Hill, one of the fastest growing communities in the Austin metro. It’s the firm’s first self-storage purchase, and it plans to grow that portfolio, believing it will yield high returns and substantial growth. (It intends to deploy $200M of equity into the space and has five more self-storage transactions lined up to close by the end of Q3.) A-A-A Storage was built in ’03 and has 460 units and 68k rentable SF. Over the next six months, Leon will implement capital improvements.

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An undisclosed buyer purchased 4268 Dividend Dr, a 30k SF industrial building in eastern San Antonio’s Eastwood Industrial Park. SACA’s Paul Fagan repped the seller and colleague Ed Cross repped the buyer.

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Rockspring Capital purchased 10 acres at the corner of Military Drive and Loop 1604 in the Westover Hills area of San Antonio. The deal was led by Rockspring’s newly hired Central Texas project manager David Orr and is part of its goal to bulk up in the rapidly expanding submarket. Rockspring foresees the site going mixed-use/retail, and is getting it development ready. David doesn’t anticipate a long holding period on the tract; he’s already in discussion with potential buyers.

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An undisclosed buyer purchased a 30k SF warehouse at 7110 E Ben White Blvd in Austin. ECR’s Ryan Wilson repped the buyer.

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An undisclosed buyer purchased The Randerson Ranch, a more than 1,000-acre parcel directly across FM 3538 from Wal-Mart Distribution Center outside of Sealy. Republic Ranches’ Dan Flournoy and Jeff Boswell repped the seller and say the site is one of the last large, contiguous tracts in the area.

LEASES

WellMed leased 10k SF at the southeast corner of Schertz Parkway and Kramer Road in Schertz. Retail Solutions’ Bill Ozer and Austin Villarreal repped the landlord, and Perron & Campbell’s Luke Campbell and Nick Campbell repped the tenant.

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Total Wine leased 11k SF at Lakeline Plaza (northwest corner of Hwy 183 and RR 620 in Cedar Park). Retail Solutions’ Cole Brodhead repped the landlord, and UCR/CBRE’s Jon Smalling repped the tenant.

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Manaka leased 5.5 acres from Thomas Bypass Trust at 18200 IH-35 S in Buda. REOC Austin’s Josh Hubka handled negotiations. 

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Levantina USA leased 30k SF of warehouse space at Northpointe Trade Center (2251 Picadilly Dr, Austin). ECR’s Ryan Wilson repped the landlord.

DEVELOPMENT

DoubleTree by Hilton Austin Northwest-Arborteum has opened. The hotel was formerly a Holiday Inn and underwent a multimillion-dollar renovation along with its name change; totally redesigning the lobby, updating guest rooms, putting in new furniture throughout, and new restaurant/bar and expanded meeting/event space. The hotel is owned by 8901 Austin Hotel LLC and managed by Driftwood Hospitality Management.

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KDC and SH 71-130 Holdings GP are developing 100 acres at the intersection of Highway 71 and SH 130 (southeast Austin) into build-to-suit office space. It’s part of a planned 390-acre mixed-use project at the intersection with retail, multifamily, industrial and educational elements, plus a Triple Freeport Designation. 71-130 Holdings GP is being managed by Karl Koebel and Doug Launius. Page is coordinating architectural planning, and Kimley-Horn is engineer.

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Stream plans to develop a 150-unit senior housing (“active adult”) community in San Antonio. It will break ground in early 2016 on 7.5 acres near the intersection of Stone Oak Parkway and Hardy Oak Boulevard in the heart of Stone Oak.

FINANCING

HFF’s Cortney Cole and Jordan Finch secured acquisition financing for Venterra Realty to purchase Ventana Apartments, a 390-unit Class-A property in San Antonio’s South Texas Medical Center area. The five-year, 3.06% fixed-rate loan was secured with a life company.

THIS AND THAT

Behringer Securities and Meritage Capital are teaming up to develop, manage and distribute a series of specialized investment funds. Behringer Securities will lead capital raising, and Austin-based Meritage will lead the investment strategy for each fund.