Texas Multifamily News

Dallas-Fort Worth apartment vacancies at highest level in 20 years

2010-01-10T11:43:00.000-08:00

Dallas Morning News
Steve Brown // January 4, 2010

Apartment vacancies in Dallas-Fort Worth have grown to the highest level in more than 20 years because of a combination of overbuilding and the recession.

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USAA Real Estate buys Broadstone Parkway complex

2010-01-10T05:23:00.000-08:00

Dallas Morning News
Steve Brown // December 28, 2009

San Antonio-based insurance investor USAA Real Estate Co. has purchased a Dallas-area urban development. The year-old Broadstone Parkway complex just west of the Dallas Galleria includes 333 luxury apartments and almost 40,000 square feet of ground floor retail space.

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MF Analysis: More Transactions in 2010

2010-01-10T05:17:00.000-08:00

GlobeSt.com
Amy Wolff Sorter // December 27, 2009

DALLAS-Local experts tell GlobeSt.com pent-up demand, combined with a smaller buyer-seller delta, will mean more assets trading next year.

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MF Analysis: More Transactions in 2010

2009-12-28T06:08:00.000-08:00

GlobeSt.com
Amy Wolff Sorter // December 27, 2009

DALLAS-A shrinking buyer-seller gap, combined with investors tired of waiting on the sidelines could mean more trades of quality multifamily in 2010. Experts tell GlobeSt.com that both buyers and sellers throughout the Dallas-Fort Worth area are aware that the market is close to bottom, or there already.

Will Balthrope, vice president investments and senior director with the Dallas office of Marcus & Millichap Real Estate Investment Services' multifamily group says he noticed a seismic shift in investor interest since October. He pointed out that demand was huge when he and partner Ryan Epstein recently marketed the 258-unit Delante in Irving, TX. The high-end, mid-rise product attracted 44 offers, with Slosburg Cos. of Omaha, NE ending up the buyer. "This is a good example of a mid-rise luxury apartment, snapped up by an investor, without a loan, which closed in 26 days," Balthrope comments.

Balthrope and Jay Gunn, associate partner with Hendricks & Partners Dallas office, agree that buyers had been sitting on the sidelines, fearful of entering the market when values were on the way down. But with the values reasonable these days, "we're seeing a tremendous amount of capital looking for investments," Gunn points out. "There's a bunch of money out there and ready to make a move. But we still don't have the product to provide."

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Encore Multi-Family To Develop $18 Million Apartment Complex In Burleson's Transit-Oriented Development District

2009-12-27T06:38:00.000-08:00

TheStreet.com
PR Newswire // December 1, 2009

Encore Multi-Family has announced the development of the Encore at Alsbury, a new 200-unit, 12.25-acre apartment development in Burleson, Texas, a fast-growing gateway to Fort Worth. Scheduled to break ground in January 2010, the 205,436-square-foot Encore at Alsbury is scheduled for completion in the first quarter of 2011. Encore Multi-Family is a subsidiary of Encore Enterprises, a leading full-service real estate acquisition, development and management company focused on the retail, hospitality and multi-family sectors.

The three-story Encore at Alsbury will provide residents easy access to I-35W and the employment center in and around Fort Worth. A strategic addition to Burleson's Transit-oriented Development (TOD) District designed to encourage mixed-use development, the new complex will serve the city's planned rail station along a commuter line connecting downtown Fort Worth to its neighboring cities to the south. Among the fastest-growing cities in the Dallas-Fort Worth metropolitan area, Burleson's population has grown 65 percent since 2000 according to the Burleson Area Chamber of Commerce, a growth rate nearly twice the national average.

"Our announcement of the Encore at Alsbury is one of many multi-family projects we plan to announce over the next few years," said Dr. Bharat Sangani, chairman and co-founder of Encore Enterprises. "The multi-family market segment represents a compelling growthopportunity for our company and our Burlesondevelopment is representative of other projects we are developing around the country. With its fast-growing population, easy access to Fort Worth and the planned rail line, the Burleson TOD is a natural fit for our newest property."

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Coming Attractions

2009-12-27T06:37:00.000-08:00

Apartment Finance Today
Jerry Ascierto // November-December 2009

Transit-oriented development and workforce and student housing are poised to capture a tidal wave of Echo Boomers.

The conventional wisdom in the multifamily industry is that rents and occupancies are declining, and that nothing is getting built these days. And that’s true, as owners struggle through lean times and financiers continue to hunker down and wait out the recession.

But three unconventional sectors—student housing, transitoriented development (TOD), and workforce housing—are poised to become viable alternatives to standard market-rate developments.

While these sectors have also been affected by the recession, demographic trends suggest that all three will play an increasingly larger role in the industry over the next decade. And all three sectors hinge on the choices of coming generations.

Student housing has shown a resiliency throughout the recession due to higher enrollment trends. And a younger workforce is increasingly migrating toward cities, where TODs are pointing the way to a new urban future, providing a natural fit for the growing workforce housing sector. Despite their promise, however, none of these sectors are without their challenges—from both a logistical and financial standpoint.

Cambridge Development opens new San Antonio apartments

2009-12-27T06:35:00.000-08:00

San Antonio Business Journal
November 30, 2009

Northwest San Antonio is set to gain its newest upscale apartment community.

Cambridge Development Group in Houston has completed construction on The Preserve on Fredericksburg. The complex’ clubhouse opened Monday. The first apartment building should be ready for occupancy on Dec. 15. The complex is located at 10422 Huebner Road, near the intersection of Fredericksburg Road and Huebner.

ULI Advises 'Buy or Hold Multifamily' Developments

2009-12-27T05:48:00.000-08:00

NRDC Switchboard
Kaid Benfield // November 10, 2009

Last week the Urban Land Institute and PriceWaterhouseCoopers released their well-regarded annual analysis, Emerging Trends in Real Estate 2010. The report, which has been published for the last 30 years, aims to advise the industry "on where to invest, what to develop, which markets are hot, and how the economy, and trends in capital flows will affect real estate." Throughout the report's 80 pages, the tone is decidedly grim, with words like "abysmal" and "doom" sprinkled on almost every page. This is not a good time to have your money in real estate.

That said, it is clear that the authors, who surveyed over 900 industry experts - investors, developers, property companies, lenders, brokers, and consultants - believe that the prospects for investment are much stronger for smart growth than they are for sprawl. This is consistent with other data and analysis from the last couple of years. Here's an excerpt:

"Next-generation projects will ori ent to infill, urbanizing suburbs, and transit-oriented develop ment. Smaller housing units-close to mass transit, work, and 24-hour amenities-gain favor over large houses on big lots at the suburban edge. People will continue to seek greater convenience and want to reduce energy expenses. Shorter commutes and smaller heating bills make up for higher infill real estate costs."
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Bedford Apartment Complex Purchased

2009-09-13T13:14:00.000-07:00

From: Globe Street
August 26, 2009

Bostonian Investment Group has taken possession of the Class B Windmill Terrace Apartments from seller Case & Associates Properties Inc. The buyer paid $8 million for the 284-unit complex, which is located midway between Dallas and Fort Worth.
The 1980s complex, at 2200 Murphy Dr., has occupancy in the high 80s and rents between $.65 and $.70 per sf.

Austin 3Q 2009 Apartment Market Update

2009-09-13T13:12:00.000-07:00

From: Texas A&M Real Estate Center // Marcus & Millichap
August 26. 2009

The addition of new supply will weigh on apartment fundamentals in the Austin metro through the remainder of 2009, despite a modest increase in demand, according to Marcus & Millichap Research Services.

As developers expand metrowide inventory by nearly 7 percent this year, owners are expected to significantly widen concessions to fill new projects. This trend will be most prevalent in the Class A segment, where new complexes will drive a 13 percent increase to stock and competition from alternative housing options is elevated.

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AMLI on 2nd in Austin Financed

2009-09-13T13:07:00.000-07:00

From: Texas Real Estate Business
September 10, 2009

AUSTIN, TEXAS — The Houston office of Holliday Fenoglio Fowler (HFF) has arranged $32.2 million in financing for AMLI on 2nd, a multifamily tower located in Austin. Situated at 421 W. Third St., the Class A tower totals 19 stories; it contains 231 one- and two-bedroom units as well as approximately 41,000 square feet of ground-floor retail space. Amenities include a fitness center, a sky deck with a pool and barbecue grills, a business center, a resident lounge and garage parking. HFF's Scott Galloway and Matt Kafka arranged the loan on behalf of AMLI Residential Properties. Terms of the financing include an adjustable interest rate and a 7-year term. The lender was Freddie Mac.

Texas A&M Student Housing

2009-09-13T13:04:00.000-07:00

From: Texas Real Estate Business
August 24, 2009

COLLEGE STATION, TEXAS — Collegiate Development Construction Services I, LLC, will build Texas A&M University’s new 250-unit student housing project in College Station. TAMU University Apartments, which is being designed to meet LEED Homes Silver standards, will be located on approximately 6.5 acres at University Drive and College Avenue. The six-building community will span 239,795 square feet and will include 293 on-site parking spaces. Amenities at TAMU University Apartments will include a commons area with picnic tables and barbeque grills, bicycle racks and a separate common laundry building. Completion is scheduled for July 2010.

Senior Retirement Community in Sugar Land

2009-09-13T13:03:00.000-07:00

From: Texas Real Estate Business
August 24, 2009

Tradition Senior Living, LP, has plans to develop a full-service retirement community in Sugar Land called The Tradition-Sugar Land. The resort-style project, which will be the first Continuum Care Retirement Community (CCRC) in southwest Houston and eastern Fort Bend County, will feature accommodations for both independent and assisted-living residents.

Located off Highway 6 between U.S. Highway 59 and Texas Highway 90A, the gated community will be situated within Lake Pointe Town Center, a mixed-use development in First Colony. Planned Community Developers, Ltd., is the developer of First Colony, which is a 9,700-acre master-planned community in Sugar Land. Amenities at The Tradition-Sugar Land include a fitness facility with an indoor pool, limited-access garage parking, and a wireless emergency response system. Opening is planned for mid-2011.

San Antonio Market Report

2009-09-13T13:00:00.000-07:00

From: Texas A&M Real Estate Center // O'Connor & Associates
August 19, 2009

San Antonio posted an increase in occupancy during July, making it the only metro area of the four major Texas markets to do so, according to O'Connor & Associates. This also marks the third straight month with increases in occupancy and absorption for the multifamily sector.

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Houston Multifamily Market Report

2009-09-13T07:41:00.001-07:00

From: Texas A&M Real Estate Center // O'Connor & Associates
August 19, 2009

Houston area multifamily occupancy continued to decline during the month of July, a familiar trend given the high level of under-construction properties for the sector. However, strong absorption figures on both a monthly and annual basis continue to foretell of a return to stable metrics as the construction pipeline diminishes.

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LaSalle Group Senior Facility in Denton

2009-09-13T07:33:00.000-07:00

From: GlobeStreet.com
August 18, 2009

Ground has been broken for the 36-unit Autumn Leaves of Denton, marking developer LaSalle Group Inc.'s eighth assisted-living residence in North Texas. Autumn Leaves of Denton at 2505 Brinker Rd. is scheduled for a March 2010 opening.

The projects average approximately 26,000 sf and are single-story construction. Land requirements average approximately three to four acres. The average cost to build is $8 million.

Autumn Leaves of Fort Worth is also scheduled to open in early 2010. These two facilities will join those already in operation throughout North Texas in Arlington, Carrollton, Flower Mound, Fossil Creek, Grapevine, McKinney and Richardson/North Garland.

New senior community set for The Woodlands

2009-09-13T07:27:00.001-07:00

From: Houston Chronicle
By: Katherine Feser // August 31, 2009

Bridgewood Property Co. has broken ground on its latest community at The Village at The Woodlands Waterway to cater to seniors with various needs.

The eight-story community will consist of 207 rental units at 2323 Lake Robbins Drive overlooking The Waterway and The Woodlands Town Center.

The 240,000-square-foot property will contain 63 assisted living units, 28 memory care units and 116 independent living units.

“The Woodlands is a very unique market where you have a large base of seniors and a large base of adult children,” said Jim Gray, president of Bridgewood Property.

The firm is developing the project in a joint venture with Harrison Real Estate Capital. Opening is planned in spring 2011.

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400-Unit Greenbriar Park North sold in Houston

2009-09-13T07:24:00.000-07:00

From: Globe Street

Aldine Greenbriar Apartments LLC acquired a Class B complex from Bank of America. The 400-unit Greenbriar Park North was purchased from foreclosure. CNC Investments was the former owner of the 1980s complex at 818 Richcrest Dr.

New Lubbock Apartments

2009-09-13T07:20:00.000-07:00

From: Lubbock Avalanche-Journal
By: Walt Nett // September 1, 2009

Lubbock's first family-oriented apartment complex in four years is finally getting off the drawing board and on the ground.

Crews will start moving dirt Wednesday for Windsor Creek Apartments, an $18 million, 208-unit complex to occupy about 11 acres on the east side of Chicago Avenue between 53rd and 54th streets.

The construction schedule calls for finishing the first of eight 26-apartment buildings and the complex clubhouse in June 2010, said Randy Egenbacher, president and principal of Egenbacher Development Services. The remaining seven buildings are supposed to be finished at the rate of one per month, he added.

"Based on our research, market demand has bounced back and this should be coming online just at the right time," Egenbacher said when asked about launching the project in a struggling economy. "We're betting $18 million on it."

The project's owner is CJ Development, a locally owned development company.

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DFW Apartment Transaction Volume Picking Up

2009-09-13T07:16:00.000-07:00

From: Texas A&M Real Estate Center
September 4, 2009

Apartment transaction volume peaked in the DFW area in 2007, when 211 apartment complexes of 101 units or more changed hands, said Brian O'Boyle of Apartment Realty Advisors.

Transactions in that category fell by half, to 105, in 2008, and only 31 complexes of 101 units or more have sold so far this year, said O'Boyle.

O'Boyle projected the DFW area will have 45 apartment transactions this year, 55 deals in 2010 and 75 deals of 101 units or more in 2011.

"A lot of funds are raising equity now to take advantage of some of the opportunities that will be in the marketplace," he said.