RECON
Real Estate Center Online News
May 2, 2008
Copyright 2008. All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.
FORO DALLAS SPORTS COMPLEX IN WORKS
DALLAS (Dallas Morning News) – A sports, entertainment and mixed-use complex marketed toward North Texas' large Hispanic population is planned for 26 acres at Stemmons Fwy. and Viceroy Dr.
Foro Dallas is being developed by LRS Real Estate.
LRS has not closed on the land, which is owned by a trust and valued for taxes at more than $5 million. However, company President Robert Peinado Jr. said the first phase of the project will cost $50 million and should start by the end of the year.
The complex was designed by Dallas architect HKS. It will have 20 covered, multiuse courts for soccer, volleyball and tennis. Plans also call for a banquet hall, hospitality suites, restaurants, several hundred apartment units and about 250,000 sf of retail space.
FED CUTS RATE AGAIN
WASHINGTON (Associated Press) – The Federal Reserve cut its key interest rate by one-quarter percentage point to 2 percent Wednesday, bringing the rate to its lowest point in nearly four years.
In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent.
Following the Fed action, Wall Street investors drove the Dow Jones industrial average up more than 178 points, lifting it above 13,000 for the first time since early January. By the end of the day, though, the index was 11.81 points below where it started.
The Fed, which has been dropping rates since last fall, has not removed another reduction from the table. However, a growing number of economists believe the central bank is winding down its rate-cutting campaign.
"The Fed didn't completely shut the door on rate cuts, but they closed it part way," said Mark Zandi, chief economist at Moody's Economy.com. "I think the overall message was they've done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed."
CHANGES IN STORE FOR INSPECTOR STANDARDS OF PRACTICE
AUSTIN (TAREI) – Inspectors licensed by the Texas Real Estate Commission (TREC) could see changes in the standards of practice (SoP) in the coming months.
Changes to the SoP — available at the Texas Association of Real Estate Inspectors (TAREI) website under "Proposed Draft Standards of Practice" — have been approved for posting to the Texas Register for public comment. They will remain there for 30 days, during which time the inspection industry can review and post comments and suggestions.
"All inspectors are encouraged to review the proposed changes to the standards and post comments or questions to the registry," said Andrea Barnard, executive director with TAREI. "Your input is needed."
After the 30-day public comment period, TREC's Inspector Advisory Committee will meet to discuss comments received. This meeting, to be held June 16, will be open to the public. The meeting agenda will be available on the TREC website by June 6.
171 ROOMS COMING TO MANSFIELD
MANSFIELD (San Antonio Business Journal) – San Antonio hotel developer K Partners Hospitality Group LP has broken ground on two hotels in North Texas.
An 83-room Fairfield Inn & Suites and an 88-room Hampton Inn & Suites are being built in Mansfield.
The Hampton Inn & Suites will also have 1,500 sf of meeting space with a boardroom and a fitness center.
NAVIGATE REPLACING MOBILE HOME PARK
DEL VALLE (Austin Business Journal) – An 89-acre mobile home park at 12400 Pearce Ln. is about to be replaced by a $32 million housing development courtesy of NaviGate Homes.
Work will begin in September on phase one of the 400-home development dubbed Pearce Place. The first 28 three- and four-bedroom homes should be available for move-in late this fall.
NORTH TEXAS SELF-STORAGE PORTFOLIO SOLD
DALLAS (globest.com) – California-based Optivest Properties has purchased a 2,663-unit self-storage portfolio from Freedom Asset Management LLC, also of California.
Optivest paid more than $26 million for the portfolio. The Class-A and -B properties were developed between 1997 and 2007 and were 66 percent occupied at sale time.
The portfolio consists of the following Friendly-branded properties:
610 E. Main St. in Allen,
West FM 544 in Murphy,
394 E. US Hwy. 80 in Forney,
3800 W. US Hwy. 80 in Terrell and
4660 Texas 360 in Grand Prairie.
FIVE POST OAK PARK PICKED UP
HOUSTON (globest.com) – Shorenstein Properties LLC has purchased the 567,396-sf Five Post Oak Park from Crescent Real Estate Equities Ltd. and General Electric Pension Trust for $122 million.
The 93 percent leased Class-A high-rise is on 3.6 acres at 4400 Post Oak Pkwy. in the Galleria area. The lead tenant is Amegy Bank.
Holliday Fenoglio Fowler LP brokered the transaction. Shorenstein will manage the property.
FONTAINE BUYS CLASS-C PONDEROSA
COMMERCE (globest.com) – Fontaine Management Inc. of Louisiana has purchased a 129-unit Class-C apartment complex and adjacent 16,902-sf tract for $1.6 million.
The Ponderosa Apartments at 2224 Live Oak St. were previously owned by a private investor from El Paso.
The 60 percent leased complex, developed from 1965 to 1976, features one-, two- and three-bedroom apartments ranging from 450 to 1,050 sf. Monthly rents range from $460 to $750.
MILL RUN'S NEW OWNER
DALLAS (globest.com) – The 112-unit Mill Run Apartments at 2732 W. Colorado Blvd. in Oak Cliff has been sold to a local private investor.
The 95 percent leased complex consists of three buildings on four acres. One-bedroom units rent for $630 per month; two-bedrooms rent for $730. Units range from 570 to 960 sf.
The seller was locally based Harshaw Asset Management Co.
TRAVESIA BRINGING MORE OFFICE SPACE
AUSTIN (globest.com) – The city’s north side could have 175,950 sf of new office space by the end of the year.
Ground has broken on a three-building office-flex project at I-35, Hwy. 45 N, FM 1325 and MoPac Expy. The project, which consists of 46,200-, 62,250- and 67,500-sf buildings, is the first phase of Travesia Corporate Park.
The 26-acre Travesia office park is being developed by Champion Partners of Dallas, Buchanan Street Partners of California and the Austin office of Stream Realty Partners. It is part of the 200-acre mixed-use Raceway Crossing development.
Dallas-based O'Brien & Associates Architecture designed the phase one buildings. Jacobs Carter Burgess' Austin team did the engineering work while Zapalac/Reed Construction Co. of Austin has been hired as the general contractor. Stream Realty's Austin office will handle leasing.
BUILDERS REACT TO DECREASING DEMAND
AUSTIN (Metrostudy) – Area builders continued reacting to slowing demand and restricted capital during first quarter 2008, with new home starts at the lowest level in five years.
According to data compiled by Metrostudy, 2,302 starts (single-family homes, townhomes and condominiums) were recorded during first quarter 2008, a 23 percent decline from the same period last year.
First-quarter closings declined 16 percent from last year to 2,978 units. For the 12 months ending in March 2008, the annual closings rate of 14,240 units was 15 percent (2,460 units) below the annual rate reported at the end of first quarter 2007.
According to Eldon Rude, director of Metrostudy’s Austin division, the majority of the decline in annual new-home starts occurred in price points below $200,000, but the annual rate of new-home starts priced between $200,000 and $750,000 also declined.
Single-family inventory, which consists of units under construction, finished vacant units and model homes, totaled 8,247 units at the end of first quarter 2008, a 6.9-month supply.
TEXAS DOMINATES BEST INVESTING LIST
DALLAS (HomeVestors of America) – With the Lone Star State’s economy faring better than the nation, it should be no surprise that Texas cities dominate the just-released list of ten top cities that are prime locations for real estate investing.
HomeVestors of America, the company famous for the “We Buy Ugly Houses” billboards, said the best investment locations are:
1. Dallas
2. Houston
3. Atlanta, Ga.
4. Fort Worth
5. St. Louis, Mo.
6. Philadelphia, Penn.
7. San Antonio
8. Denver, Colo.
9. Minneapolis, Minn.
10. Phoenix, Ariz.
The list is based on the number of houses bought in each market by the franchise network in first quarter 2008.