The Austin & San Antonio Deal Sheet
KBS REIT III acquired the outstanding shares of common stock of the fee owners of the 200k SF Promenade I and II at Éilan in San Antonio.
The two multi-tenant spaces, at 17806 and 17802 IH-10, were built in 2011 and include resort-style workout facilities, a spa, convenience stores, tennis courts, parks and gardens. Additionally, San Antonio’s two largest shopping centers, The Rim and The Shops at La Cantera, surround the property. Tenants in the properties include KPMG, Apache Corp, Merrill Lynch and Northwestern Mutual, among others.
SALES
Cypress Equities closed on the acquisition of almost 13 acres at the southwest corner of Lakeline Boulevard and Crystal Falls Parkway in Leander for the creation of the Crystal Falls Town Center. The future 94k SF grocery-anchored complex will include retail and restaurant space. Randalls inked a 63k SF lease as the project anchor. Two smaller center tenants also have executed leases. Cypress is undergoing negotiations with additional retail and restaurant tenants. Construction should start this summer with a completion date slated for September 2016. SRS Real Estate Partners in Austin will lease the center.
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San Antonio Commercial Advisors (in the Cushman & Wakefield Alliance) sold the 16k SF 4715 Rittiman Rd, an industrial building in Northeast San Antonio. SACA’s Zach Dobin repped building owners Levy Construction.
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Rendina Healthcare Real Estate acquired Physicians Plaza II, a 64k SF MOB on the Methodist Specialty & Transplant Hospital campus in San Antonio. The facility is within the 900-acre South Texas Medical Center, one of the nation’s largest healthcare hubs. Rendina’s immediate plans for the property include suite and common area renovations.
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ARA Newmark sold a 390-unit value-add asset in San Antonio to a private investor, who plans for interior upgrades to increase value.
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An undisclosed client sold a 32k SF warehouse on 10 acres at 17401 IH-35 in Buda. ECR’s Ryan Wilson and Matt Levin repped the seller.
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Holliday Fenoglio Fowler’s Sean Sorrell, Todd Stewart, Todd Marix and Matt Pohl closed the sale of the 360-unit Class-A Park at West Avenue garden-style apartment community in San Antonio. HFF’s John Brownlee, Robert Wooten and Michael Cosby secured a $36.5M 15-year, fixed-rate acquisition loan through a national life insurance company. HFF will also service the loan. HFF marketed the asset for Embrey Partners. Pure Multi-Family REIT purchased the asset for an undisclosed amount. The property has 82 two-story townhomes with two-car garages and 278 luxury flats.
LEASES
Gold’s Gym leased 31k SF at 318 Valley Hi Dr in San Antonio. Retail Solutions’ Charlie Roof repped the landlord. CBRE’s Gene Williams repped the tenant.
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SiteStuff leased 23k SF at 12301 Research Blvd. The tenant was repped by AQUILA Commercial’s Chris Perry. The landlord was repped by Peloton Commercial Real Estate’s Brian Liverman and Kevin Granger.
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Tires to You leased 42k SF at 3800 Drossett Dr. The tenant was repped by CSA Realty’s Andrew Creixell. The landlord was repped by Peloton Commercial Real Estate’s Brian Liverman and Camille May.
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Lemon Pop leased 12k SF at I-35 and FM 306 in New Braunfels. NewQuest’s David Meyers and Glenn Dickerson repped the landlord. JLL’s Keith Mcree repped the tenant.
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Snow Software leased 27k SF at 1703 W 5th St in Austin. AQUILA Commercial’s Jon Wheless and Kristi Svec Simmons repped the tenant. AQUILA’s Chad Barrett repped the landlord.
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Dominion Ridge, which will open this summer, is now fully leased with the exception of a 1k SF space. The development at the intersection of IH-10 West and Dominion Drive in San Antonio is being directed by Cencor’s San Antonio partner Michael Schoenbrun. The Weitzman Group’s David Nicolson and Marcus Shaffer handle leasing at the project. Among the retailers and restaurants to open their first Texas locations here are Di Frabo Ristorante Italiano at Dominion Ridge. Aldaco’s Mexican Cuisine is a well-known local concept that opened a new location at Dominion Ridge. There is also a 13k SF freestanding CVS Pharmacy.
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UpRev leased a 10k SF freestanding industrial building at 4807 Commercial Park Dr. The landlord was represented by ECR’s Ryan Wilson and Matt Fain.
EXECUTIVES
Kennedy Wilson hired Dode Harvey as senior director of property management and leasing in the firm’s San Antonio office. He will oversee the expansion of property management and leasing services. He will also supervise the recently awarded property management and leasing contract for Creekview Garden Offices in San Antonio. Prior to joining Kennedy Wilson, he was president of Diamond T Ranch Development.
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JPI opened its new office in Austin with the hire of Dustin Slack as VP and development partner. He will focus on multifamily development in the Austin, San Antonio and Houston markets for JPI’s Southern Region development group. He is responsible for coordinating all aspects of the multifamily project life cycle, including site acquisition, entitlements, capitalization, construction, operations and disposition. JPI currently has three multifamily projects in Austin totaling 906 units: the 326-unit Cielo, the 228-unit Madrone and the 352-unit Sur512.
NEW DEVELOPMENT
Drawbridge Realty selected Austin's LEVY Architecture to develop Phase 2 of 5301 Southwest Pkwy in Austin. The development will include the addition of a new 125k SF corporate office building, expansion of the existing parking garage and a renovation to the existing 165k SF corporate office building.
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Cielo Property Group and TIER REIT partnered to build a 349k SF office tower in downtown Austin with multiple outdoor decks overlooking Shoal Creek and also featuring several floors of flexible creative office space. Construction on the 28-story building at 208 Nueces St should start in early 2016, with a targeted completion at the end of 2017. Designed by Gensler, the glass tower is expected to feature 10 floors of traditional office space as well as three floors with 28-foot-high ceilings that will allow inter-floor connectivity and loft-style work areas and flexible creative office space unique to downtown Austin high-rises. Plans for ground-floor retail include restaurant space overlooking Shoal Creek and retail and/or restaurant space at the corner of Third Street and Nueces. The tower will offer a 300-stall secured bike parking facility with oversized locker rooms inside the building. The tower will reside on the 43k SF Austin Music Hall music venue location. Built in 2007, the facility faced financial challenges for several years before lenders repossessed it in 2012. Cielo purchased the building from Bank of the Ozarks last year, and carefully deliberated its future use. Cielo will continue to own the Austin Music Hall brand and is actively searching for a smaller, higher-quality music venue to open under the name.
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Construction started this month on the the Heritage at Westover Hills Assisted Living and Memory Care facility, near the southwest corner of Wiseman Boulevard and Rogers Road in San Antonio. Developed by the McFarlin Group, the Heritage will include approximately 100 beds of assisted living and memory care (certified Alzheimer’s) situated to the nearby Christus Santa Rosa Hospital–Westover Hills.
FINANCE
Berkadia originated a $29.8M loan for the acquisition of Grand Estates at TPC, a 408-unit multifamily property at 5707 TPC Pkwy in San Antonio. Managing directors Jeff Robbins and Matt Ewig secured the 10-year loan through Fannie Mae. The loan includes seven years of IO for Wood Partners, Silverpeak Capital and W.P. Carey.
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BMC Capital’s Keith Van Arsdale arranged a $4.25M refinance loan for a 154-unit multifamily property in Austin. The non-recourse loan featured a 75% LTV, five-year fixed rate at 4.83% and a 30-year amortization through one of BMC Capital’s correspondent agency relationships.
