This Week's Dallas-Fort Worth Deal Sheet
Across the Dallas-Fort Worth multifamily market, vacancy fell and the average rent rose in the first half, despite an influx of new stock. Most of this year’s production has yet to come and several submarkets, including Intown Dallas and North Fort Worth/Keller, are looking at double-digit growth in inventory this year, according to Marcus & Millichap’s Q3 apartment research report.
The Metroplex economy prospered in the first half of 2015 and little stands in the way of the region’s apartment sector achieving lower vacancy and vastly higher rents for the entire year, the report states. For the remainder of the year, the report forecasts:
Employment: Staffing will expand 2.5% with an additional 82,000 jobs.
Construction: Developers will place in service 22,000 units, including roughly 2,900 rentals around Fort Worth. The total also includes 1,400 units of age- and income-restricted housing. Last year, 15,500 apartments were completed in the Metroplex.
Vacancy: Net absorption will narrowly exceed completions in the market this year to trim the vacancy rate 10 bps to 5.2%. A decline of 30 bps occurred in 2014.
Rents: Property owners will continue to exercise considerable pricing power and limit the use of concessions despite high completions. This year, the average rent in the market will rise 7.4% to $987 per month, outpacing the similarly vigorous 6.6% jump in 2014.
Collin County attorney Todd Albin and developer Craig Gutow, with the help of private investors and friends, broke ground on a 24k SF Class-A office building at the northwest corner of the Dallas North Tollway and Lebanon Road in Frisco. Albin Ranch will be the anchor tenant of the Starwood Professional Building. The project was designed by Chris Rador Architect and construction is expected to be completed by December.
Cawley Partners completed its rehab of Toll Hill Office Park at the southeast corner of the Dallas North Tollway and Harvest Hill Road. Cawley Partners bought the two, two-story office buildings with 240k SF last year and recently finalized $3M in project upgrades that include renovations to the lobby, restrooms, parking lot and landscaping in both buildings. Three new spec suites have been completed, and an additional 12 more are in the works. Cawley Partners’ Jeremy Duggins and Addie Ludwig are handling leasing.
The Bascom Group acquired the 436-unit Towns of Riverside multifamily community in Grand Prairie. Debt financing was arranged by Newmark Grubb Knight Frank’s Jamie Leachman. ARA Newmark’s Brian Murphy and Brian O’Boyle Jr. repped the seller.
The Victory Group closed on about a 10-acre tract on the southeast corner of Hwy 380 and Stonebridge Drive in McKinney. Davidson & Bogel Real Estate's Geoff Young, Edward Bogel and David Davison Jr. repped the buyer, The Victory Group, which will be developing medical office and retail. Buttry Realty Partners’ Steve Buttry repped the seller. Davidson & Bogel Real Estate will assist in the marketing of the pad sites to retailers.
BEDNAD purchased a 28k SF building at 6400 Airport Fwy in Haltom City. NAI Robert Lynn’s Todd Hubbard repped the buyer.
Commercial Real Estate’s Michael Berkowitz repped the seller, K & HT Corp, in the sale of a 35k SF shopping center at 2401 W Pioneer Pkwy in Pantego to Sync Holdings. The buyer was repped by Scott Lowe of Vision Commercial.
Buchanan Street Partners, in a partnership with CarVal Investors, acquired the 238k SF Richardson Office Center I & II from Principal Real Estate Investors for an undisclosed amount. The new owners plan to complete minor upgrades. Richardson Office Center is located at 3001 & 3101 E President George Bush Tollway in Richardson. It is 90% occupied. CBRE’s Gary Carr and Robert Hill repped the seller. Buchanan Street repped itself.
Baceline Investments purchased the 33k SF Northwest Crossing shopping center at 1250 Northwest Hwy in Garland for $3.4M.
HFF senior managing director John Brownlee and associate director Michael Cosby arranged $45M in financing to acquire the 395-unit Amalfi Stonebriar Class-A multifamily community at 5725 Town & Country Blvd in Frisco. They arranged the loan 12-year, fixed-rate loan with TIAA-CREF for Pure Multi-Family REIT. Completed in 2014, the property is 94% occupied.
TexSet signed a new 24k SF lease at 9534 Industrial Rd in Justin with Three S&W. Transwestern VP Sarah LanCarte repped the landlord. Transwestern VP Todd Hawpe repped the tenant.
Alan Plummer Associates renewed its 24k SF lease at 1320 S University Dr in Fort Worth with Southside Bank. Transwestern VP Alex Bryant and principal Leland Prowse repped the tenant.
General Insulation Co signed a new 20k SF lease at 5116 NE Pkwy in Fort Worth with SE & AE Investments. Transwestern VP Sarah LanCarte repped the landlord.
Southwest Restaurant Equipment leased 15k SF at 3220 Dalworth from Vivian Jones Management Trust. Kent Realty president Bob Kent handled the transaction.
Tuesday Morning signed a 13k SF lease at 3046 Lavon Dr in Garland from 3046 Lavon. The Retail Connection’s Scott Rose repped the landlord. TRC’s Jim Weir and Jack Weir repped the tenant. Dollar Tree also signed an 11k SF lease at the same address. Scott repped the landlord, and TRC’s Jenny Reynolds and Jeremy Zidell repped the tenant.
THIS & THAT
Marcus & Millichap’s Dallas office joined in the Fill-A-Backpack School Supply Drive to benefit numerous local charities. The charitable event was part of a larger effort arranged by Transwestern (which manages the firm’s office building). Tenants of the building were encouraged to fill backpacks with requested school supply items. The group filled 34 backpacks, as well as donated items for teachers. About 100 backpacks were donated in total. Charities benefiting from the Fill-A-Backpack include Vogel Alcove, Our Friends Place, Jonathan’s Place, Interfaith Housing Coalition, The Family Place, Alley’s House, Genesis Women’s Shelter, New Beginnings Center, Hope’s Door, Dallas Advocate Program and IKandy Foundation.
Restaurant industry veteran Lane Cardwell joined Falcon Realty Advisors as a director of its restaurant and entertainment group, where he will advise clients on their strategic positioning and concept branding. He has served as president of P.F. Chang’s, president and CEO of Boston Market, and president and CEO of Eatzi's Market and Bakery, a JV with Brinker International and Phil Romano. During his time at Brinker, he also served as chief administrative officer and board member.