Cleveland-based developer Stark Enterprises has completed its first student housing project on the campus of the University of Texas at Arlington. Called Liv+, it is almost at capacity for it first open season. The $40 million project was designed and built by Stark Enterprises’s construction arm, Arbor Construction, and managed by Arlington local property management company Campus Advantage.
D-FW INDUSTRIAL MARKET
STILL STRONG, REPORT SAYS
Transwestern released its national industrial report for the second quarter of 2018 on Aug. 27. The report found that 37 of 47 markets posted positive absorption for the quarter, and 43 of 47 posted positive absorption for the previous 12 months. Brisk absorption in most primary and secondary markets has kept the national industrial vacancy rate low, with 30 markets recording vacancy at or below the U.S average of 5 percent.
The Dallas-Fort Worth region also continued its industrial growth spurt, leading the nation in product under construction and recording the second-highest trailing four-quarter net absorption total.
According to the report, Dallas-Fort Worth has a vacancy rate of 6.2 percent and has about 767 million square feet of industrial space in inventory. Rents have increased in D-FW about 4.4 percent and there are 25.6 million square feet of industrial space under construction.
“After a slow start to the year, we saw a sharp uptick in consumer spending in the second quarter, which boosted e-commerce activity and contributed to job growth in the trade, logistics and transportation sectors,” said Matthew Dolly, research director in New Jersey. “In markets where absorption cooled somewhat, the issue is not lack of demand but a wait for new construction to deliver.”
While leasing at coastal port markets such as the Inland Empire and New Jersey continued unabated, Columbus and Cincinnati, Ohio; Charlotte, North Carolina; and Phoenix were a few of the secondary corridors that made the top 10 for absorption in the second quarter, further fueling the conversation about labor shortages in the warehousing, transportation and construction industries.
In the second quarter, 39 markets saw year-over-year rent growth, indicating that tenants continue to battle for new industrial product, especially for improvements such as more efficient layouts and greater truck-court depths. In space-constrained markets where land is in play, developers are willing to explore site remediation as costs are likely to be recovered through higher rents.
“U.S. ports continue to experience record-setting volumes, and this has been amplified by retailers pre-ordering merchandise amidst rising trade tensions and tariffs that many fear will lead to higher-priced consumer goods,” said Michael Soto, research manager in Los Angeles. “While rising protectionism has added a level of uncertainty in the supply chain not seen in quite some time, the U.S. consumer has been resilient, and the market is expected to remain strong through year end.”
IRVING DEVELOPER EXPANDS
FARMERS BRANCH PROJECT
Irving-based JPI is planning to add hundreds more units to an apartment community in Farmers Branch called Jefferson Mercer.
JPI has closed on phase two of Jefferson Mercer and plans to add 416 apartments to the original 424, on which construction began in January 2017.
“As the oldest settlement in Dallas County, Farmers Branch offers a unique live-work-play environment – something we know people are looking for,” said Matt Brendel, divisional president and managing partner at JPI. “This second phase will allow us to provide additional homes to the residents of Farmers Branch, a population that grows each and every day.”
Jefferson Mercer II, located south of Interstate 635 and west of Interstate 35, will sit near a 30-acre lake and provide access to two miles of trail systems and five acres of green space.
On the property, residents can use the outdoor fitness and CrossFit center 24 hours a day, as well as a gated dog park, swim-up pool bar and state-of-the-art indoor fitness center and yoga studio.
Jefferson Mercer II apartments will feature upgraded interiors and amenities such as 10-foot ceilings, balconies and patios with ground-floor private yards, separate glass-enclosed showers,
washers and dryers.
Comerica Bank is the lender for the project, while CrossHarbor Capital Partners is equity partner.
KBW Property Ltd sold a 149,981-square-foot industrial property at 4801 Esco Drive in Fort Worth to Empire Roofing for an undisclosed price. Jack Huff and Grant Huff of Transwestern represented the seller.
Fort Worth Independent School District purchased 6 acres at 4050 S. Hulen St. in Fort Worth from Congregation Ahavath Sholom. Jack Huff and Grant Huff of Transwestern represented the seller. Mack House of Westover Group represented the buyer.
Gyant GP LLC sold a 41,868-square-foot flex property at 631 106th St. in Arlington to P. Lawler Enterprises for an undisclosed price. Jeff Givens of Transwestern and David Barber with Formation Real Estate handled transaction.
A local investor, Armet Dale Street Ltd. Partnership, purchased 3.9 acres at 7601 Scott St. in White Settlement from West Side Rec Center. Transwestern’s Todd Hawpe represented the buyer, and Kyle Poulson and Jack Huff of Transwestern represented the seller.
Jameel Toron purchased a 2,880-square-foot retail property at 1721 Everman Parkway in Everman for an undisclosed price. Transwestern’s Todd Hawpe and Dallas Margeson represented the seller.
Erickson International has leased 5,535 square feet of flex space in Carrier Place, 1517 W. North Carrier Parkway, Grand Prairie, from KFO Carrier LLC. Michael W. Spain of Bradford Commercial Real Estate Services represented the tenant. Clay Balch of Holt Lunsford Commercial represented the landlord.
International Industrial Contracting Corp. signed a new lease for 40,000 square feet of industrial space at 3200 Randol Mill Road in Fort Worth. Joe Rudd of Transwestern negotiated the transaction with the tenant and the landlord, Langeco Management Group.
IMAP Global Logistics signed a new lease for 16,221 square feet of industrial space at Northwest Trade Center 10, 1063 Texan Trail in Grapevine. John Fulton and Brett Owens of Transwestern represented the tenant. Gil Stroube of Lincoln Property Co. represented the landlord, Prologis.
SFC Operating Corp. renewed its lease for 16,160 square feet of office space at 777 Main in Fort Worth. Whit Kelly and Dallas Margeson of Transwestern represented the landlord.
Frye-Stone Inc. signed a new lease for 12,262 square feet of industrial space at 2233 Solona St. in Haltom City. Brent Landfried of Transwestern represented the tenant.
Tidewater Logistics Operating LLC signed a new lease for 4,065 square feet of office space at 550 Bailey Ave. in Fort Worth. Whit Kelly and Dallas Margeson of Transwestern represented the landlord. David Walters of CBRE represented the tenant.
ERA Health LLC renewed its lease for 3,102 square feet of office space at 777 Main in Fort Worth. Whit Kelly and Dallas Margeson of Transwestern represented the landlord, and Transwestern’s Jack Huff and Grant Huff represented the tenant.
Massey Services signed a 5,000-square-foot renewal lease at Village Creek Business Center, 5069 Martin Luther King Jr. Freeway in Fort Worth. George Jennings and Thomas Grafton of Holt Lunsford Commercial represented the landlord.
NEW LEASING ASSIGNMENT
The Fort Worth office of Holt Lunsford Commercial, a commercial real estate service firm, recently took over the leasing and marketing assignment for The Landmark in Arlington, a Class B Office building with 64,949 rentable square feet located at 2201 N. Collins St.
“The building has great access to both Interstate 30 and Highway 360 and is surrounded by numerous restaurant and retail options, a number of which are walkable. Ownership is currently designing lobby and common area upgrades to help fill our remaining spaces that range from 1,000 up to 6,500 RSF,” said the new leasing agent, Marshall Mays.
Send real deals to Robert Francis at firstname.lastname@example.org.