The Deal Sheet
At least Mississippi-based EastGroup Properties doesn't have to use as many frequent flier miles when it goes to visit its newest property: It just purchased the 265k SF Centerpoint @ Colorado Crossing in East Austin from an undisclosed Boston-based pension fund.
The fully occupied, Class-A project on Burleson Road has a blend of tenants, including OriGen Biomedical, Hisco, and OnRamp Access. The four buildings are made up of an average of 24% office and 76% light industrial. CBRE’s Todd Mills tells us the stability of the project, the strong growth in Austin, and the southeast industrial submarket were all attractive qualities for the buyer. Plus the industrial market is very active with a deep investor pool looking for assets in Austin today, he says. Todd, along with CBRE’s Jack Fraker, Josh McArtor, Greg Marberry, Hunter Mills, Jonathan Bryan, and Heather McClain Venegoni, handled the transaction.
SALES
Laurus Corp purchased the Marriott San Antonio Northwest Hotel at 3233 Northwest Loop 410 in San Antonio. The 296-room hotel was built in 1985 and is slated to undergo a $16M renovation.
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Drawbridge Realty Trust acquired 5301 Southwest Pkwy in Austin. The four-story, Class-A office building totals 165k SF on 48 acres with development plans for an additional 124k SF office building and parking structure. The property is fully leased to Overwatch Systems. CBRE’s Todd Mills, Hunter Mills, Troy Holme, and Casey Ford handled the deal.
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Rockspring Capital acquired a 121-acre industrial, development-ready site off I-10 E, east of San Antonio and south of New Braunfels. (It's between a Caterpillar engine plant and Caterpillar general supplier, a few miles from the new SH 130 toll road in Seguin.) The site can accommodate a large industrial user or two or three smaller facilities.
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Alternivest Healthcare purchased approximately 30 acres at the southeast corner of FM 306 (Barbarosa Road) and FM 1101 across the street from Tenet Healthcare’s Resolute Health Hospital in New Braunfels. There, it'll build a master-developed “age-in-place” destination, with plans to include an MOB, skilled nursing facility, and assisted living/memory care. CBRE first VP Scott Herbold repped the buyer in the site selection and will oversee ongoing sale and lease negotiations.
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BP Westchase sold the 165k SF University Park Tech Center III and IV at 5959 Northwest Pkwy and 5800 Farinon Dr in San Antonio to CLPF - IPC III-IV. CBRE’s Todd Mills, Carrie Caesar, and Hunter Mills repped the buyer.
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L&B Realty Advisors sold the Villa Rosa Medical Plaza in San Antonio to American Healthcare Investors. CBRE’s Chris Bodnar, Lee Asher, Scott Herbold, and Todd Mills repped the seller. The 68k SF MOB is anchored by Christus Health. The property was built in 2010 and is on the 900-acre South Texas Medical Center campus.
FINANCING
Lucent Capital arranged $29M in permanent non-recourse financing secured by Met Center 10, a 346k SF, Class-A flex office building in Austin. The non-recourse loan enabled the borrower, a TIC investment group formerly sponsored by Breakwater Equity Partners, to refi its existing debt and complete a structural upgrade program. The loan has a fixed interest rate of 4.85% for 10 years and also includes a capital improvement holdback that will allow the borrowers to reconfigure a parking lot and create an additional 100 parking spaces for the tenants over the next several months.
CONSTRUCTION & DEVELOPMENT
Adolfson & Peterson Construction celebrated the topping out of the $90M Forest Park Medical Center near SH 45 and La Frontera Boulevard in Williamson County. It's serving as the GC for the hospital, which is being developed by Neal Richards Group. Construction began in Q4’ 13 with completion scheduled for Q1 ‘15. Bury provided services on the project, too. As part of the celebration, Neal Richards Group director Brian Jarrett smoked 190 pounds of brisket and pork shoulder, providing a BBQ lunch for the 250 employees on-site. Designed by Page, the 145k SF four-story hospital will also feature an 80k SF MOB and a 181k SF garage.
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Stream Realty Partners is developing the One51 Office Centre in the Westover Hills master-planned development at 10162 Hwy 151 in San Antonio, between Military Drive West and Potranco Road. Stream plans to break ground next month on the project, which will feature floor plates to accommodate tenants from 22k to 100k SF. Stream expects to break ground this August.
LEASES
The global HQ of Harland Clarke Holdings Corp will occupy 129k SF at 15955 La Cantera Pkwy in WestRidge One, which is the first phase of RealCo’s 42-acre master-planned office park in San Antonio. Construction of WestRidge Two is expected to start in the Q4. Savills Studley’s Mark Russell repped the tenant. Travis Commerical’s Lisa Mittel and Chuck King repped developer Patrinely and owner USAA Real Estate Co. Patrinely Group’s Dennis Tarro repped in-house.
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New Era Publishing inked a 59k SF lease at 2101 E St Elmo Rd in Austin from GKII SouthTech Business Center. Oxford Commercial’s Ted Doucet repped the tenant. CBRE’s Ace Schlameus repped the landlord.
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Prostar Services signed a 14k SF lease at 9324 Neils Thompson Dr in Austin from IndCor Properties. CBRE’s John Barksdale repped the landlord. CBRE also repped the tenant.
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Under Armour leased about 35k SF of the low-rise building currently under construction at the Seaholm Power Plant project. The low-rise office and retail building is expected to be completed by the end of this year. The redevelopment site is on the southwestern edge of downtown Austin, bounded by Cesar Chavez Street, West Avenue, 3rd Street, Seaholm Drive, and the A&NW rail line.
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ResearchPoint Global signed a 12k SF lease at 5301 Southwest Pkwy in Austin from Overwatch Systems. CBRE’s Nate Stricklen repped the tenant.
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Ansys leased 14k SF at 805 Las Cimas Pkwy. JLL’s Jeff Pace repped the tenant. Peloton Commercial Real Estate’s Kevin Granger and Brian Liverman repped the landlord.
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Benchmark Electronics inked a 45k SF lease at 200-C Parker Dr in Austin from IndCor Properties. Aquila Commercial’s Kristi Simmons repped the tenant. CBRE’s John Barksdale, Mark Emerick, and Darryl Dadon repped the landlord.
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SG Mexican Foods (D/B/A El Lago) signed a 24k SF lease at 3813 A Helios Way in Pflugerville from 130 Commerce Center. Private Label Realty’s Raye Shapley repped the tenant. CBRE’s John Barksdale, Mark Emerick, and Darryl Dadon repped the landlord.
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Barton Associates signed a 12k SF lease at 9001 N IH-35 in Austin from Ttp 204 Northview. CBRE’s Ace Schlameus repped the tenant. Transwestern’s Luke Wheeler and Will Stewart repped the landlord.
KUDOS
CBRE and others in the commercial real estate community raised more than $37k at its annual fundraiser at Topgolf. Here are CBRE’s Katie Froelich, STG Design’s Andrea Hill, Sabre Commercial’s Mike Huffman, Rockford Business Interior’s Steve Brady; and CBRE’s Brooke Brindle and Kyle McAden. The funds support multiple charities chosen by the CBRE Cares philanthropy committee including Austin Habitat for Humanity, Austin Pets Alive, The Comfort Crew for Military Kids, Freedom14 Camp, Helping Hand Home for Children, and Jeff Gordon Children's Foundation.
EXECUTIVE MOVES
Marc Krohn joined CBRE’s Austin team as a managing director of asset services in the Central Texas region. Marc relocated from Cincinnati, where he previously served as a director of asset services for CBRE’s Cincinnati and Dayton, Ohio, and Northern Kentucky markets. He will oversee an approximately 16M SF real estate management portfolio throughout Austin, San Antonio, and El Paso.
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Berkadia Commercial Mortgage added Lloyd Griffin as a VP in the company’s Austin office. He brings 18 years of industry experience to Austin’s mortgage banking team, where he will be responsible for originating structured financing opportunities and arranging JV equity partnerships. Most recently, Lloyd served as regional director for five years at Citi Community Capital.
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Kyle Hemminger joined the Austin office of Lancaster Pollard as VP. He will be responsible for clients in Central and West Texas, including the Austin, Dallas, Fort Worth, and El Paso, and will oversee the structuring and funding of healthcare project financing for hospitals and senior living providers in the region. He joined the firm in 2011, where he was a senior associate at the firm’s HQ in Columbus, Ohio.
