REDNews January 2017 by RE Journals

JANUARY 2017

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Solid & Safe:

Foreign Real Estate Investment

Forecasting Texas' Future: Five-year Economic Outlook

For more information, please see page 5

January 2017

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IN THIS ISSUE

18 24

Market

Sales & Leases 1-3, 5, 7, 9, 13, 15, 17, 19, 21-23, 42

Services

Environmental Services 30, 43, 44 Legal Services 41 Paving & Striping 8 Photography 29 Real Estate Loans 8

Scoop

Events 32, 34, 36 Social 33, 35 ,37 Bulletin 38-40 4

January 2017

Features

Forecasting Texas' Future 10, 11 DFW Market “As Good As It Gets” 14, 16 Solid & Safe: Foreign Investment 18, 20 CIVIL FAIR PLAY Adopting Affordability 24 – 26 REC Austin Going for Silver 28, 29 RAY'S BUZZ Leave Yourself Open to Random Encounters 42

Doug Pack & Sam Hansen Join Avison Young in Houston TOP AGENCY LEASING BROKERS TO BUILD OFFICE LEASING PLATFORM Rand Stephens, Avison Young Principal and Managing Director of the firm’s Houston office, announced that top agency leasing brokers Douglas Pack and Sam Hansen have joined the company.

Sam Hansen

Effective immediately, Pack and Hansen become Principals of Avison Young with a mandate to form, lead and build the firm’s new office project leasing team in Houston. They will work with owners and developers to improve asset value through strategic leasing. Pack and Hansen bring a combined four decades of commercial real estate experience to Avison Young, most recently as vice-presidents with NAI Partners in Houston. “Sam and Doug are high-quality professionals who bring great expertise to project leasing in our Houston office,” comments Stephens. “Most importantly, they’re terrific guys and a great fit for us culturally. We couldn’t be more thrilled that they have joined us, and we look forward to helping them take their business to the next level.”

Doug Pack

Stephens adds: “Their track record of success, reputation and depth of relationships in the industry will be an asset to our team as we continue to extend our reach in the region through a steadfast focus on providing best-in-class client service.” Pack brings 21 years of commercial real estate experience to Avison Young, most recently as an executive vice-president with NAI Partners in Houston. During his career, he has been active in all facets of real estate management and leasing while working to advance project leasing, property management and investment sales. While at NAI Partners, he tripled the office leasing portfolio to 3.8 million square feet (msf) of class A and B office space, and brokered more than 16 class B office building investment sales, valued in excess of $65 million. “I am eager to join the Avison Young family as a new Principal,” says Pack. “Avison Young provides opportunity for growth unlike any other firm because of its Principal-led structure, local-level management and entrepreneurial work environment.” Pack started his commercial real estate career with Boxer Property in 1994 and held several leadership positions in both leasing and operations with the company. As a key executive with success in both property management and agency leasing, he was responsible for developing Boxer’s third-party management and leasing service line, which grew to more than 5 msf during his tenure. He also led all business development and supervised the third-party portfolio, its management and leasing platform, and the asset management team. In his role as the firm’s director of leasing, Pack was responsible for a portfolio encompassing more than 8 msf of assets located across the U.S. The portfolio consisted of office, medical office, retail and multi-family properties. Prior to assuming that position, he was a regional operations director for a portfolio of

office buildings in Dallas and Tulsa covering 2 msf of assets. After he implemented the Boxer management and leasing platform, the Tulsa portfolio was sold to a third-party investor. Pack holds a Bachelor of Arts degree in communications from the University of Houston. Hansen brings 18 years of commercial real estate experience to Avison Young, most recently as a senior vice-president with NAI Partners in Houston. During his career, he has worked primarily as an office landlord leasing agent. During his eight-year tenure with NAI Partners, he built a successful office portfolio of class A and B office buildings. He also assisted NAI Partners in building a successful management platform totaling nearly 4.5 msf of industrial, office and retail properties. “We were drawn to Avison Young because of the family-like culture and collaborative partnership,” notes Hansen. “The firm’s client-centric service model and entrepreneurial approach to transaction management provide opportunity to grow our business. We are eager to collaborate with our new colleagues in Houston and the rest of the U.S.” Prior to joining NAI Partners, Hansen worked as a leasing director for 12 years with Hines Interests in Houston, where he was solely responsible for approximately 5 msf of class A, trophy office buildings, including JPMorgan Chase Tower, Williams Tower, and Greenspoint Plaza –ExxonMobil’s global headquarters for upstream development and exploration. With Hines, he completed 156 significant office leasing transactions totaling more than 1.85 msf. Representing building owners, he has negotiated leases on behalf of such Fortune 100 companies as ExxonMobil, Wachovia (regional headquarters), Citigroup, Verizon, Merrill Lynch, and Lehman Brothers. He has also completed transactions for such notable tenants as Locke Lord, Breitburn Energy and Williams. In addition, Hansen was one of the first in the U.S. to complete Hines’ advanced technical core program and was part of a pilot project to generate a standardized training program for Hines to deploy worldwide. Hansen holds a Master of Business Administration degree in international management and a Master of Arts degree in Latin American economics from the University of New Mexico; and a Bachelor of Arts degree in liberal arts from the University of North Texas.

“We were drawn to Avison Young because of the family-like culture and collaborative partnership” Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,400 real estate professionals in 79 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties. Avison Young was a winner of Canada’s Best Managed Companies program in 2011, 2012, 2013 and 2014 and requalified in 2015 to maintain its status as a Best Managed Gold company

Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PUBLISHER

Ginger Wheless ginger@REDNews.com

EDITOR

Margie Gohmert info@REDNews.com

STAFF WRITERS

Dear Readers,

Happy New Year! I hope your holidays were exceptionally good, that you’re not five pounds heavier and if you made any New Year’s resolutions, they are still intact.

This time last year the key question everyone was asking was the effect the price of oil would have on Texas commercial real estate. Twelve months later, the oil price debate has given way to the unchartered waters we have entered, politically and economically, with the election of our new president. It will probably be the end of the first quarter before we have a clearer picture of how our industry will be affected; however, we all know Texas is the land of opportunity. The influx of foreign capital to the US for commercial and residential investment has continued to grow dramatically. Read what Kenneth Li and Eugene Wang had to say on Pages 18-20. Dr. John Baen’s five year Texas forecast is generally positive (Pages 10 - 11) and it’s interesting that he expects “big ranches” to be in demand this year. I look forward to working with you this year to market your properties! Best Regards,

y p p a H ear! Y w e N

Ginger Wheless

January 2017

Brandi Smith info@REDNews.com Janis Arnold janisarnold1@gmail.com Anne Farrell Peterson info@REDNews.com Sue Durio info@REDNews.com Andrea Slaydon info@REDNews.com

CONTRIBUTING WRITER

Ray Hankamer rhankamer@gmail.com

EMARKETING DIRECTOR

Rahul Samuel emarketing@REDNews.com

DIGITAL/MARKETING DIRECTOR Tony Nelson digital@REDNews.com

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Benton Mahaffey accounting@REDNews.com

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Forecasting Texas’ future: UNT professor delivers five-year economic outlook “There's an awful lot of people who want to hear what I'm about to say, as though I know the future,” Baen told the crowd. “You know I don't, but I do have an opinion.”

he said. “How long does it take bad news anymore to travel to the stock market? About a millisecond. There are people playing it by the millisecond.”

He started by focusing on the international picture, addressing Greece’s financial crisis (“It was a nonevent two years ago at this meeting, except that right now they're having chaos and meltdowns.”), India’s decision to eliminate certain cash denominations (“It's just an absolute meltdown. Guess what real estate's doing? Going absolutely through the roof.”), Russia’s impact on oil and gas (“It’s going to make prices go up some more.”) and China’s attempt to slow down its property market (“You can only have one house per family, so couples are getting a divorce to buy two houses, then getting married again.”).

“[It’s] still going up. It's not going down at record-low interest rates,” he said. “If interest rates go up, it's going to blow up the federal budget.”

Here in the United States, Baen said the economy is limping along with just 2.3 percent growth.

John Baen, Ph.D.

BY BRANDI SMITH

Lively, dramatic and certainly not shy, John Baen, Ph.D., delivered his five-year economic forecast to a packed house at North Texas CCIM’s November meeting. The University of North Texas real estate professor moved through topics at a rapid-fire clip, jumping from Greece to the Fed to emergency care clinics. 10

January 2017

Name

“We need 2.6 percent growth in order to keep our heads above water and to stay stable,” he said. “To spur this economy on, we need to create more capital. The Fed and this country need some inflation. We have plenty of appreciation in Texas, so people are coming here. The rest of the country needs a little higher interest rate; they need some healthy inflation. Healthy inflation. That just sounds hard to say, but it's true.” That “healthy inflation” will likely be the result of increased interest rates in December. According to the minutes of the Fed’s November meeting, most officials think a rate increase would be appropriate “relatively soon.” That, Baen pointed out, will have an impact on the national debt. “[It’s] still going up. It's not going down at recordlow interest rates,” he said. “If interest rates go up, it's going to blow up the federal budget.” The Fed’s decision could also trigger a violent reaction on the stock market, according to Baen. “Stock market volatility is out the roof right now,”

Should interest rates go up in December, Baen said he expected the lending market to tighten up. “The demand for money is going up. They can't print it fast enough for the kind of money we're talking about. You need to go long right now again. Nail them down. Pay a point to nail it down if you have to,” said Baen. “A construction loan without a permanent loan commitment right now, I think, is suicide. It's going to cost you some money.” He said other factors that will influence the real estate market nationally, as well as here in Texas, include the oil and gas industry. In what Baen described as “real chaos,” he pointed out that in the past few years, 67 such companies went bankrupt and another 130 are pending. “We have 9,000 wells that have been abandoned because of the oil meltdown. They go off and leave them,” he said. “This is Texas and Texas is about oil and gas taxes, which pay for all of your highway projects and everything else. Right now, because production is going down, the state isn’t receiving the taxes that allow it to not have a state income tax. We're concerned about that.”

"But", Baen added, “oil prices will cycle.” “The price is going to be $74 a barrel within a year. They're drilling like crazy in West Texas. I think they're going back to work,” he said. “It's going to be

U.S. is at its peak. “Rents have been going up. That's awesome. Rental rates at a record high,” he said, tempering it with: “Because of bond market changes and interest rate changes, people are already having a little trouble going from a construction loan to a long-term fixed.” As an example, he pointed to Houston, which has seen a 15 percent decline in luxury apartment rates. “Anything over $600,000 in Houston right now is down between 12 and 19 percent in sales in the last 90 days,” Baen said. “So it's slowing down.” North Texas, though, “is now considered a gateway to investment worldwide like New York, like L. A., like Chicago,” according to Baen.

OK in Texas. It's going to be OK.“ As the oil industry rebounds, the rest of the Lone Star state’s economy is booming, thanks, in part, to actions made by other states, such as California. “California lifted its minimum wage to $15. That is great for Texas. Ours, is $9, so everybody leaves California and comes here to start their business,” said Baen. “It costs less to go broke in Texas.” Despite setbacks posed by the oil and gas slump, he asserted the real estate industry is going strong. “We have 10,686 residential real estate salespeople. They sold 101,000 houses last year, so each one is selling about ten houses,” Baen said. “An average house is about $247,000, so real estate agents are doing really, really well.” He suggested residential home sales have rebounded significantly as lending restrictions following the Great Recession eased.

“Instead of going from the starter home to a middle-sized home to executive home, back to middle-sized home, back to a condo, back to the nursing home and then to the cemetery, they're talking about this ‘lifetime home.’ In other words, a three- or four-bedroom is the starter home and the ending home,” Baen said. “There are two neighborhoods in Frisco where there has not been one foreign seller. They keep them forever.”

A key result of that is a lack of foreclosures, especially in North Texas. “They're not selling them on the foreclosure. They're selling before foreclosure,” Baen said. “Only 30 of 141 houses went back to the third party. Only thirty. The rest of them made a deal.” "Residential sales play a key role in development," Baen said, because “rooftops come before retail.” The retail industry, through, is struggling as sales lag. Baen suggested they are down as much as 35 percent.

“Dallas has a long way to grow in terms of distribution, particularly air distribution. It's going to be really huge,” he said. “DFW Airport is now leasing a lot of land for industrial projects on 50-year ground leases.”

Baen hinted that there is tremendous potential about to be uncorked around the Metroplex. “There are 42,000 lots for sale, under construction or planned immediately between Prosper and Denton, north of U.S. Route 380,” he said. “We're talking about a lot of houses out there.” As developers navigate the market in the months and years to come, Baen suggested they keep those factors in mind, as well as one other: location, location, location. “Underwater homes take on a new meaning because of the new FEMA requirement for flood insurance,” Baen said. “Just stay out of the floodplain.” "But," he said, "keep your eye on those large tracts that pop on the market."

“Rents are going to start shrinking, footprints are going to get smaller, older shopping centers are going to get re-configured. The market value is going to go down. The cap rates are probably going to be headed up.” He laid part of the blame on the urgent and emergency care storefronts that seem to be popping up everywhere. “If you have a pulse, you can get a house,” said Baen, adding that many buyers aren’t American, but instead come from all over the world. “One in six or one in seven houses is being bought by foreigners right now. They don't need financing. They're writing a check for it,” Baen said. He pointed to another trend among foreign buyers: the “lifetime home” approach they often have to purchases.

“What happens is they build them on the best corners. It's really expensive construction, really expensive land, really expensive financing,” Baen explained. “The rents are extremely high and the rate of return is unbelievably high. Why? Because the risk is so high.” Other sectors appear to be doing well, according to Baen. He described the mini-warehouse business as “as strong as goat’s breath” and the office market as “on fire, booming.” On the apartment front, Baen said he suspects the

“The basis of wealth is still land. It is very, very long term,” he said. “Big ranches are in demand, but the prices are not going up and the liquidity has gone down because of the oil and gas business.” "In the end," Baen said, "Texas is the place to be when it comes to the real estate industry: “We have oil. We have land. We have a positive attitude. We have Texas personalities. We have jobs. It's just looking so good. It's just unbelievable for Texas.” l January 2017ß

2017 Editorial Calendar 60,000+ Print/Digital Distribution + Over 200 Newsstands Throughout Texas. *REDNews will have additional magazines at these events

Month

Market Focus & Sub Focus

January

Vacant Land / Texas Development Opportunities Texas Economic Development

February

Office Medical/Industrial Trends & Hot Spots

Retail / Vacant Land / Texas Development Texas Economic Development

March

Ad Deadine *Bonus Distribution Dec 11, 2016

Jan 12, 2017

- RECA KnockOut Night - CCIM Forecast Competition - BOMA Southwest Region Conference

Feb 12, 2017

- CCIM & CREW Austin Real Estate Summit - Real Share Houston

April

Vacant Land/Industrial Industrial Hot Spots

May

Retail / EDCs/Vacant Land Texas Economic Development

Mar 11, 2017

Apr 12, 2017

- Texas A&M Land Markets Conference - BOMA Dallas Trade Show - RECon Las Vegas

June

Industrial/Office Medical Trends Medical Hot Spots

May 12, 2017

July

Land, Mixed-Development/ Texas Development Opportunities Texas Economic Development

Jun 10, 2017

Retail Recap Texas Economic Development

August

Land / Texas Development Opportunities September Texas Economic Development

October

Retail / EDCs Texas Economic Development Industrial Office Service / Land

November Industrial Hot Spots December 12

Vacant Land / Retail ICSC Recap Texas Economic Development

January 2017

Jul 12, 2017

Aug 12, 2017

Sep 12, 2017

Oct 12, 2017

Nov 11, 2017

- Real Share Austin

- Retail Live! Austin - NTCAR Expo - TABB State Conference - Texas A&M MCE - ICSC Texas - Real Share Dallas - Land Advisor Symposium

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online at rednewsonline.com or call 713-661-6300 January 2017ß 13 Contact REDNews for any questions regarding the upcoming issues and advertising: (713) 661-6300 / emarketing@rednews.com

DFW Market “As Good As It Gets”: for Institutional Investment

BY DIANE VELASCO

The DFW market is “as good as it gets” for institutional investment opportunities, according to a panel of commercial real estate experts who convened at the RealShare Conference in the Hilton Dallas/ Plano Granite Park on Nov. 16 to share insights, trends and predictions on market sectors. “We believe in the DFW market because we are seeing job growth here rather than job replacement, and it has the ability to maintain this growth,” said Pam Boneham, managing director for Barings Real Estate Advisers, part of a global investment group with $284 billion under management. “This is as good as it gets - additional land and ability to create supply are keeping things cost effective in DFW.” Job growth and abundant supply were echoed by most as key components for continued investment in DFW and around the state. With 122,000 jobs created in 2016, Texas is number one in the country by percentage of growth and number two, behind New York, in total number of jobs created, according to Steve Pumper, executive managing partner with

Transwestern Investment Group, who moderated a panel of institutional investors.

Office – Creative Space, Amenities Key Demands

The sheer strength of the job market makes the Lone Star state shine, keeping companies like asset management firm KBS focused on DFW and Austin, said Ryan McManigal, vice president and asset manager. “Our largest portfolio is here in Dallas, and 97% is leased space, which is driven by job growth,” he said. “We are focused where we think jobs will continue to grow, including Austin and other smaller markets around the country, such as Nashville.” Abundant supply, compared to many other major metropolitan areas, is another strong draw for office, industrial, multi-family and mixed-use investors. Beyond strong fundamentals driving corporate relocations, Dallas, in particular, is growing due to its overall desirability – from mild weather to parks and arts, said David Cohen, managing director at Ready Capital Structured Finance. “I see a lot of cities all over the country, but nothing like Dallas,” he said. “It has tremendous suburban growth, but also the work, live, play environment in both Uptown and Downtown is very desirable.” The experts weighed in on each sector of the commercial real estate market.

The power and influence of technology for today’s modern worker is driving an upswing in demand for office flex space on the leasing side, said Joshua McLeod, vice president of Regus, one of the world’s largest providers of office space. “With the acceleration in business cycles, which impact how businesses operate and their levels of

RealShare 2016 Panelists Brad Davey

Colin Fitzgibbons

Joshua McLeod Patrick Hacket January 2017

David Cohen

Pam Boneham

Jason Geer

Roger Davis

Ryan McManigal

Steve Pumper

Tony Creme

Continued on Page 16

Manufacturing/Distribution Facility Available For Lease Located in the Big Spring Airport/Industrial Park, with direct access to runways, rail service, and Interstate 20, this property has extraordinary logistical opportunities.

1600 W. 1st Street, Big Spring, Texas, 79720 • "Crossroads of West Texas" • Located on the Ports-to-Plains Corridor linking Mexico with Canada • Direct Access to Runway, Rail Service & I-H 20/US 87 Truck Relief Route, Big Spring, TX • New Relief Route will have 2 entrances (1 on West & 1 on Southwest) • Warehouse Space: 125,700 sq. ft • Office Space: 7,400 sq. ft

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Contact: Terry Wegman Phone: 432-264-6032 terrywegman@bigspringtx.com www.bigspringtx.com January 2017ß

Continued from Page 14

staffing, companies are looking for more flexibility,” he said. “Also, knowledgeable workers work more than eight hours a day, and they don’t necessarily work those in the office. Corporate buyers know they have to build office space that inspires office workers.” Demand is rising for collaborative, open work areas, not just traditional space, as well as for amenities such as rooftop decks and outdoor common eating areas like food halls. “We are seeing a greater percentage of square footage being allocated to amenities now than there ever has been,” said Colin Fitzgibbons, vice president of KDC Real Estate Investment & Development, a leader in build-to-suit space. Another trend is a de-emphasis on parking space as companies encourage workers to walk, bike and Uber their way to work. “On a smaller scale, we’re seeing a lot of buildto-suits for creative companies and technology companies,” said David Cohen, managing director of Ready Capital Structured Finance. Leasing momentum and rent growth remain strong. “Our exposure to the Dallas office market in the last six years has been on the value side – we’re watching value office rents increase as the top of the market increased too,” observed Patrick Hackett, vice president of acquisitions for real estate investment management firm Stockbridge Capital Investment. “There’s plenty of new supply – the market is showing broad-based growth.”

She predicts the industrial sector will continue to see good returns in rent growth in 2017 and 2018, though not as much of a spike in rents as the market has experienced in the past two years. Hackett said Stockbridge has been a big buyer of industrial this cycle, and he is excited about its prospects going forward. “We’ve seen recent new trades go beyond replacement cost, something we track pretty closely,” he said. “We have turned toward some of the Class B products, which are enjoying growth in small business, and we’re seeing better rent growth without the competition from new supply.”

demographic that can afford those rents.” Still, Dallas rents are conservative compared to major markets like San Francisco at $8 per square foot, and DFW offers good opportunities in suburban markets that are not overbuilt, where millennial are choosing to live, work and play, the panelists noted.

Retail – The “Wild Card”

Growth in this sector is reflecting demand for data centers, driven by the explosion in smart device technology, said Tony Creme, senior vice president with industrial developer Hillwood. “There are three smart devices per human being on earth, and that’s driving demand for large data center space,” he explained. He cited FaceBook’s plans to triple the size of its Fort Worth data center to five buildings totaling close to 2.5 million square feet rather than three buildings totaling just 750,000 square feet. The social media giant sees 45 billion messages and two billion photos posted across its platform daily, Creme said.

Multifamily – Factors in Its Favor

Credit: torg.eyeanalytics.com

Despite growth in jobs and household incomes in the area, the DFW retail sector is as impacted by digital shopping trends as other markets are, making investors more cautious. “The e-commerce revolution means retail is now the wild card,” said Brad Davey, senior vice president with real estate investment firm Clarion Partners. The firm looks for power centers with grocery anchors and experiential businesses that offer something shoppers can’t get online. Boneham noted even traditional grocers are facing new threats from Amazon and Walmart, which have begun offering online grocery shopping capabilities.

Industrial – The “New Retail”

“We remain interested in investment in well located retail, but now we evaluate additional aspects,” she said. “Credit worthiness of tenants is changing in ways we didn’t expect.” l

Concerns for the Future Several factors bode well for the immediate future of multifamily as an investment class, Davis said.

DFW is a core market for industrial investments, said Roger Davis, director of Northwestern Mutual Real Estate Investment. The firm considers DFW a top-five market. “We’re bullish on industrial, especially on warehouse space,” he said. “Industrial is now our second priority, behind apartments – it’s the new retail.” “The industrial sector is not overheated in DFW and the vacancy rate is still very attractive, according to Pam Boneham. “Additional supply is coming online, but not as much as in the last two years,” she added. 16

January 2017

“Lenders are tapping the brakes on construction lending, starts and permit levels are down 50 percent and, with two-year delivery schedules, it’s looking good for multifamily,” he said. Fifteen new projects coming to Uptown Dallas will create some softness in that market and some surrounding markets, but because of continued job growth, the supply will be absorbed in 12 to 18 months, Boneham said. The challenge is predicting sustainable rent growth as rents reach up to $5 per square foot. “Definitely the big question is how many $3 to $5 renters are there?” said Jason Geer, managing director of Invesco Real Estate. “It’s not the millennial

Top concerns, not just for DFW, but for the economy as a whole going forward included ineffective federal monetary policy in the event of another economic downturn, tighter trade policies that would hurt imports (impacting warehouses and other industrial space) and cyber terrorism or other black swan event that would disrupt supply and demand, especially any that might turn healthy development into a glut of product. The good news, panelists agreed, is the overall strength of the Texas economy. “There’s a lot of power and momentum behind this economy,” said McLeod with Regus. “The demand trend is there for at least up to three years.”

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Solid & Safe:

Foreign Real Estate Investment in the United States

Eugene Wang

Kenneth Li

BY ANDREA SLAYDON

Commercial Real Estate in the United States continues to be a solid investment for foreign investors and it’s only expected to go up in 2017. Real estate is one of the safest investments around and Texas is one of the most popular areas for foreigners to settle down.

Behind Canadians, the Chinese now represent the largest group of foreign buyers in the United States real estate market. Chinese investors acquired at least $17.1 billion of existing commercial real estate property between 2010 and 2015 with half of that investment in 2015 alone, according to an in depth study from the Rosen Consulting Group. “Foreign investment is largely driven by international investors who are looking to place their money into the United States,” said Wang. “Because of turmoil in Asia, Europe and other places around the world, the United States is being viewed as the safest country to invest in the world.”

Why Texas? “One major investment foreigners are making is in real estate, both commercial and residential,” said Eugene Wang, Vice President of the Asian Real Estate Association of America (AREAA) Houston Chapter. “Texas is getting a huge chunk of that because of the strong economy and friendly business policies.”

Kenneth Li is the broker/owner of Texas George Realty DBA Southwest Realty Group and the unofficial Mayor of Houston’s booming Chinatown area. He’s been involved in the Houston real estate market since the '80s and has seen huge changes and growth along the way. “At the time there were only 30,000 Asians in the Houston market,” said Li. “Unofficially, the Asian population is now 400,000. It’s one of the fastest growing populations in the area.” Li says the popularity of Chinatown in Houston is part of what helps bring in foreign investors and business. “There are thousands of restaurants and businesses and many community centers,” said Li. “Chinatown has become the life center for all of the diverse community. It’s a lifestyle of your own country and when you feel more comfortable you can have all the professionals you need to help grow your business. They know the culture; they can quickly adapt to the market.” Along with the strong Asian community in Houston and in other cities across the state, there is also just more land available for purchase. "There are a lot of opportunities in real estate in Texas because the growth in population and jobs is driving new development," said Wang," Texas real estate

January 2017

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is also more affordable relative to other major cities which makes investments accessible to more investors."

“There are a lot of foreign companies taking a pause right now because they want to see what President Elect Trump’s policy will be before they make large investments in the United States,” said Wang. “ This would be the case for any change in leadership.”

"We don’t have a crystal ball to see how the change in leadership in the White House may impact foreign investment in the commercial real estate market." “Trump built a real estate empire for himself, so don’t think there will be a dramatic change that will be adversary for real estate investors,” said Lin.

Piece of the Pie Commercial real estate agents or business owners may see foreign investment as an opportunity for growth and advancement. But how? Wang recommends getting involved with the players. “The seasoned Asian American brokers and other professionals involved in AREAA should be the channel to invest into,” said Li. “They know the players and the culture of the country can help with networking and negotiations. AREAA can provide that platform.”

Bringing Jobs Chinese investors have dominated the EB-5 Immigrant Investor Program. According to the Rosen Consulting Group report, in the 25 year history of the program, Chinese individuals represented 70% of total EB-5 investment from all countries. This investment has contributed to the creation of 200,000 jobs.

“The members of AREAA cover all areas of real estate,” said Lin, “contractors, title companies, insurance agents and mortgage companies. Our mission is to promote a network of opportunity for commercial business owners and home buyers.” “We want the commercial real estate professional to realize there is a big piece of the pie we can all share together,” adds Lin. l

For more information on AREAA see: areaa.org

The job growth helps when other factors in real estate take a dip, says Dawn Lin, President of AREAA Houston Chapter. “During the market downtime without this foreign investment, there is more influx with more foreign money and this helps to stabilize the market,” said Lin,” They are not only buying real estate, they are helping to create a lot of job opportunities. They buy shopping centers, hotels, all ready to develop. Think about all the jobs being created because of this.”

Trump impact? We don’t have a crystal ball to see how the change in leadership in the White House may impact foreign investment in the commercial real estate market. But, Wang predicts if there is a slowdown, it shouldn’t last long.

January 2017

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Adopting affordability:

Tony Salazar

Dionne Nelson

Jake Wegmann

How the City of Dallas and ULI worked toward a solution BY BRANDI SMITH

The population in North Texas is booming right now, which is not news to REDNews readers. Many of you have watched as an average of more than 2,700 people poured into Dallas-Fort Worth each week. Between July 1, 2014 and July 1, 2015, the Metroplex grew by 144,704 people, according to estimates from the U.S. Census Bureau, beaten nationwide only by Houston’s growth of 159,083. As new residents flood Dallas and its neighbors, they generate a new challenge: where do you house them? The answer to that question has morphed significantly over the years, with a new emphasis on re-energizing downtown.

“A truly vibrant downtown” “There is a real push to try to reduce the amount of time that people sit in their cars and get them closer to where they work,” said Pam Stein, executive director of ULI North Texas. “I think the city leadership is really interested in reurbanizing their urban core, and that's happening a lot and it's very exciting when you go there,” said Jake Wegmann, an assistant professor in the University of Texas Community and Regional Planning Program. “If you want to have a truly vibrant downtown or urban core, then it's a whole lot more interesting and vibrant when there are all kinds of people living there.” 24

January 2017

That means creating opportunities for cultural and economic diversity, the latter of which can be difficult given the high property values in downtown Dallas. “More and more affluent people are interested in moving into the urban core,” Wegmann said. “At the same time, it becomes more difficult for lower- and even middle-income people to live in some of those neighborhoods.”

“We have millennials who are able to pack three people into a two-bedroom apartment in Uptown to afford rent there, but that’s not a practical answer for a family.” “Like many other cities around the country, Dallas is faced with a lack of sufficient housing for what's been typically considered work-force level employees; teachers, policemen and other basic service providers are having a hard time finding affordable housing,” said Stein. “We have millennials who are able to pack three people into a twobedroom apartment in Uptown to afford rent there, but that’s not a practical answer for a family.” Dallas, however, is not alone in its efforts to reinvigorate its downtown. Here in Texas, every major city is tackling the same challenge. “I think it's really spreading to all the biggest cities in Texas and sometimes if you just look at certain indicators, you might miss it,” said Wegmann. “In Austin, for example, the urban core has lost population in the past 50 years. That isn’t because

it hasn't had a ton of investment; that's because wealthier people have fewer children.”

Dallas, however, is not alone in its efforts to reinvigorate its downtown. Here in Texas, every major city is tackling the same challenge. Kent Collins, principal at Austin’s Centro Development, has worked with the City of Austin to bring mixed-income housing to its downtown core for nearly two decades. Beginning with Post West Avenue (now Gables West Avenue) in 1997, he experienced firsthand the push for, and hardships of, building affordable options. “I'm not as afraid of incentive-based workforce housing requirements because I understand what the tradeoffs are in doing them,” Collins said. “I also understand that in almost all situations they don't affect your project. In some cases they help your project, because they either allow you to have a simplified permitting process, or get zoning or entitlement incentives.” Collins, who has participated in projects such as San Antonio’s River House, Houston’s Midtown Square and Decatur, Georgia’s Arlo developments, recognizes that, though most cities want affordable housing, some do not recognize the financial implications. “They don't understand what a developer goes through in order to have an affordable housing component of the project, both from a reporting standpoint, and from a market acceptance standpoint,” said Collins. “They don't necessarily understand what tools are important to a developer to offset that.”

Karl Stundins

Kent Collins

Mark Shelburne

At the City of Dallas, staff are very cognisant of the financial obstacles faced by many of those who would like to live downtown, which is why they are determined to offer more options to would-be residents. “We've found over time that good neighborhoods are ones where there's a lot of housing choice,” said Karl Stundins, the area redevelopment manager for the City. “Now we’re working to align our priorities from different departments so they all support the policy.”

“Many different levels” The City kicked things into high gear early this year when it reached out to ULI, requesting help from the National Advisory Services Panel, which puts together a collection of experts on a topic to flesh it out and find solutions.

Ultimately, ten people participated in the panel that stretched from Feb. 29 to March 4: Kent Collins, Jake Wegmann, Tony M. Salazar, Nancy Montoya, Dionne Nelson, Philip Payne, Meaghan Shannon-Vikovic, Mark Shelburne, Roger L. Williams and Stockton Williams. “Ultimately, it took two weeks to find the right people. They are ULI members from all over the country who volunteer their services. It's a fabulous volunteer program that ULI's members offer back to those municipalities or other public agencies that need assistance,” said Stein. “I get to work with volunteers and people who really want to give their time to something and it's a wonderful attitude. To have people you get to work with on an everyday basis who are excited about doing something to give back to the community that's given them so much, is very rewarding.”

Meaghan Shannon-Vikovic

Nancy Montoya

Ultimately, ten people participated in the panel that stretched from Feb. 29 to March 4: Collins, Wegmann, Tony M. Salazar (West Coast division president for McCormack Baron Salazar), Nancy Montoya (principal at TTA), Dionne Nelson (principal and CEO of Laurel Street Residential), Philip Payne (principal and CEO at Ginkgo Residential), Meaghan Shannon-Vikovic (vice president of Enterprise Community Partners), Mark Shelburne (senior manager at Novogradac & Co.), Roger L. Williams (principal at RW & Assoc.) and Stockton Williams (executive director at ULI’s Terwilliger Center for Housing). Joined by several members of City staff, the panel spent that week interviewing stakeholder groups, reviewing what the City had done up to that point and identifying affordable housing best practices of cities. “It's a very complex issue that has to be solved on many different levels. The easy way out today is typically to say, ‘OK, we're going to require developers who want to build in a certain area or who want to rezone a piece of property to provide affordable housing,’” Collins said. “There's a different responsibility and a different set of rules for a city to follow when they're leasing or selling land that belongs to the public. I do understand the motivations of city governments and putting certain stipulations on the sale or the leasing of public property.” That sentiment was echoed by Wegmann: “Cities are going to have to walk a fine line between the public sentiment to squeeze affordable housing out of developers and squeezing those developers too hard. Then the developers say, ‘No, thanks. We'll just build somewhere else."

“There has to be a grand bargain” Knowing that would not be a successful approach in the City of Dallas, the panel discussed alternatives, including incentives for developers, changes in zoning policy and compromise between developers and community groups. “As a developer, I think most people are of the opinion that you would like to see some kind of an incentive that helps to offset that reduction in revenue, income, that added complication that makes it more difficult to sell a property,” Collins

Pam Stein

Phil Payne

said. The City currently has a toolbox loaded with financing options to encourage developers to incentivize affordable housing part. Those tools include multifamily mortgage financing through HUD, Fannie Mae and Freddie Mac, low-income housing tax credits, HOME federal funding, community development block grants and the HUD 108 Loan Guarantee Program. However, those are often limited. “Low-income housing tax credits are great if they're used to great effect by both nonprofit and for-profit developers, but barring federal legislation, they're capped in terms of how many there can be,” said Wegmann. “There's kind of nothing really anyone can do about that at the state or local level.”

“Cities are going to have to walk a fine line between the public sentiment to squeeze affordable housing out of developers and squeezing those developers too hard. Then the developers say, ‘No, thanks. We'll just build somewhere else." However, Collins pointed out, the cost of drawing all income levels into a downtown core could get excessive. “A city might be better off providing affordable housing in neighborhoods perhaps fairly close to downtown, but I don't think you should provide all income levels the ability to live in the heart of the downtown of the city,” he said. “The cost per unit of providing affordable low-income rather than moderate-income housing in a downtown so far outweighs the benefit. In other words, you can do five to ten units of affordable housing in a neighborhood outside of downtown, in some cases, rather than doing it in the heart of downtown. If you're leveraging public dollars for public benefit, then in my opinion it's more responsible to do it in Continues on Page 26 January 2017ß

Continued from Page 25

neighborhoods outside of downtown and around downtown, than it is in the heart of the CBD.”

The panel’s weeklong search for solutions culminated the presentation of new policies and practices for the City.

The panel also suggested that the City evaluate zoning as a way to lure developers.

“This is a really good plan”

“In Texas, we have a statewide prohibition on mandatory inclusionary zoning, but incentives for density are certainly on the table,” Wegmann said. “I think that's going to be the way to go.”

• Create a Chief Executive Officer of Housing and Community

Stundins oversees the City’s tax-increment financing (TIF) programs, 18 of which are currently active. “Tax-increment financing is not going to solve all the ills of urban America. It's one out of many tools that we as a city use,” he said. “What we're doing is identifying under performing real estate in the city, then developing a plan to change the market. We are working with developers one at a time, block by block, to implement the plan. When we do TIF funding for a project, we require a mixture of affordable units to be mixed in with market units for residential projects.” Another valuable piece of the puzzle is cooperation with the neighborhood groups that sometimes fight high-density development for fear of it driving lower-income residents out of certain areas. “I think if we're going to get anywhere with affordable housing, there has to be a grand bargain between those neighborhood groups and developers. Developers are going to have to accept that if they want to build in certain areas in the urban core, they're going to have to give some of it back in the form of affordable housing,” Wegmann said. “As for the neighborhood groups, if they really truly care about affordability, they have to accept development nearby.”

“A city might be better off providing affordable housing in neighborhoods perhaps fairly close to downtown, but I don't think you should provide all income levels the ability to live in the heart of the downtown of the city,” Education, said Collins, is another important tool: “I really think that every developer conference ought to have a session on the ins and outs of providing mixed-income housing. I think that mixed-income housing is the wave of the future and everyone should understand all the aspects of it: city government, citizens who vote, people who serve on panels and councils and governmental bodies, and the development community, as well as the financial community.” 26

January 2017

The panel developed the following directives for the City: Investment

• Create a Housing Trust Fund with dedicated revenue sources • Identify a limited number of housing and community revitalization focus areas

• Expand housing choices in high opportunity areas • Create a predictable, transparent and efficient housing policy – citywide

• Enough planning - time to act “I guess we just left thinking, ‘this is a really good plan, but at the end of the day it has to be city political leadership that takes up the mantle and makes it happen or makes at least pieces of it happen,’” Wegmann said. Now nearly ten months after the panel made its recommendations, REDNews followed up to see where things stand today. “It's really a hand off to the city. I understand it's working its way through the city council,” said Stein, adding that ULI can only make suggestions, not lobby for them. “Because we are a 501(c)(3), our governing documents don't allow us to really get in there and argue heavily.” Though ULI didn’t push the issue, the City is making progress. In fact, staff say the council will likely vote on a new housing policy after this issue goes to print in December. Look for an update in the February issue of REDNews. l

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Going for Silver: RECA Celebrates 25th Anniversary

BY SUE DURIO

To say that Austin, Texas, circa 1991 looked much different than it does today is an obvious understatement to those who have been around Central Texas for a while. Dell Computer was but a fledgling company, only three years old. The Austin Convention Center was still a gleam in the eye of city leaders. Austin population had barely passed the 500,000 mark. And the still-young South by Southwest festival’s attendance was in the hundreds, not the hundreds of thousands.

for people to live in, offices for them to work in and restaurants for them to enjoy an evening out, we have to be cognizant of the values held dear to most Austinites.

Tom Terkel, RECA Founding Member FourT Realty

TT: We like to say that while folks join RECA for the events, they stick around for the advocacy. RECA has always been known for its great networking and events, such as the big annual KnockOut Night fundraiser, which we started in 1991.

It was in that backdrop that a new voice representing the real estate industry in Austin came onto the scene, the Real Estate Council of Austin. A quarter of a century later, RECA has grown from 150 members its first year into a 1,800-member community of commercial real estate professionals who rely on RECA for advocacy, networking and professional education. As RECA celebrates its 25th anniversary this year, REDNews talked with leaders on where it’s been and what is ahead.

RN: What precipitated the need for an organization like RECA? TT: In the early ‘90s, the only voices from the real estate industry tended to be fairly strident folks who waged all-or-nothing battles without recognizing that what makes Austin extraordinary stems from the great diversity of views here. So, we started RECA to be a moderate voice for real estate interests recognizing that as we build homes

January 2017

RN: Can you paint a picture of the Austin business and real estate market in 1991 versus today? TT: Back then our real estate industry was pretty small and when downturns hit, people left Austin to go to either coast. Now, people from all over the world flock here for the best jobs with the most interesting companies in the world. In 2009 – 2012, when every other place in the country was shrinking, we were still growing. But, while we’ve changed in many ways, in other ways, it’s still the same. From transportation to permitting delays, we’re still facing many of the challenges now that the community faced then. RN: How did RECA attract members early on?

But the most important work RECA does is every day at City Hall. RECA’s staff and expert member volunteers stay on top of the issues that impact our industry and they are great at providing their expertise to our city’s leaders and keeping our members informed about what’s going on. RN: What were some of the hot-button issues early on that RECA zeroed in on? TT: In the late 1980s, one of our city council members actually wrote a letter to 3M telling them they would not be welcome to open up in Austin. So, we started by helping the city learn about better ways to protect our environmental assets other than just not building anything. We worked to solve problems in the Barton Springs Zone by forming the Hill Country Conservancy alongside fair-minded, sincere environmental activists. HCC has since preserved hundreds and hundreds of acres of Hill Country land, and meanwhile we’ve opened up that area for sensitive development.

Brian Cassidy, RECA Chair Locke Lord LLP RN: When did you first become active with RECA, and why? BC: I became active in RECA in 2009. I was attracted to the organization by the caliber of people involved and the fact that RECA played a meaningful role in policy discussions related to growth in the region. I have always liked the fact that RECA has not shied away from its role as an advocate for responsible development, even while, at times, being vilified by those who believed that little or no development was the best policy. Our region is now suffering the effects of not having built infrastructure to keep up with the growth we have experienced, most notably in our transportation system. I think it would be even worse if groups like RECA had not been there to advocate for some level of infrastructure investment. RN: How has RECA evolved over its 25 years to stay relevant to its members? BC: With the accelerated growth experienced in recent years, RECA has taken proactive steps to assure that its leadership and membership better reflect the changing demographics. For example, we recently instituted term limits for service. This will help to assure that there is a continuous inflow of new people on the board (along with those who have several years of board service), thus giving us a better perspective on current trends and perspectives in the community. We also created a Past Board Chair’s Council as a way to keep former leaders of the organization, many of whom still are active leaders in the community, engaged. And we are sponsoring more events aimed at younger members- those who are both future leaders and who represent the changing face of the real estate development community. RN: What are the top issues facing RECA and its members today? BC: Transportation, CodeNEXT, and affordability. On the transportation front we have taken an

active role in Mayor Steve Adler’s mobility bond proposal, by both vetting it to assure that it can deliver mobility and congestion relief and by trying to assure that the bond funds are spent in a manner consistent with what has been represented. CodeNEXT hits at the core of what RECA’s membership does, so we have been actively engaged in the process by which the draft code is being developed. We have publicly advocated for a more timely delivery of the draft code (which has been delayed several months) and have participated in the process by which prescription papers, intended to guide development of provisions of the code, have been developed. Regarding affordability, we recently called for the City to adopt a goal of adding 15,000 new housing units per year, with a focus on the “missing middle”- the dwindling supply of housing between single-family homes and large apartment complexes.

development, and it will continue to do so because its members, and those representing its members, deal with growth and development issues every day.

gathered were as important as the things they were gathering.

RN: What do the next 25 years look like for the Austin real estate market?

NM: If we are unable to find solutions to allow people to move throughout the region, the pressure on our existing infrastructure will cause it to fracture, then ultimately break. Like all great cities before us, we are facing a pivotal point in our evolution. How will we address transportation? How will we address affordability? Will our elected officials lead rather than react? Are we cultivating the next generation of leaders who will inspire our city?

RN: In a city with so many diverse interests and competing voices, how will RECA continue to be heard above the noise to effectively advocate for members?

RN: What do you see on the horizon for Austin’s commercial real estate market?

BC: RECA’s credibility and depth of talent will enable it to continue to be an influential voice in policy matters. The expertise that RECA members bring to issues is unique among the diverse interests and competing voices that may be heard. That is not to say that other voices are not relevantthey clearly are. But RECA has consistently brought an informed voice to the debate over growth and

BC: I think we will see the continuing densification of an expanding urban core, with technology and biotech companies driving much of the growth. The medical school and the so-called innovation district will add another dynamic to the local economy and will drive development and re-development in certain areas. Technology will influence our transportation options, but we will still struggle with funding roads and other infrastructure improvements. Nick Moulinet, RECA Chair-Elect Stantec

RN: Are there any red flags that concern you about the Austin market right now?

It is important for RECA to get our smart people out there as a resource for members of our community, civic and political leaders. These are the people that are faced with meeting the demands for office and housing and retail and parks and trails and great places to gather. l

NM: As an emerging city, we are at the forefront of a change in the way people live. Technology has had a massive impact on how people shop, work and even communicate, and the rules for development have become antiquated. Workplaces are as much a recruiting tool as they are a place to get your job done. Retail developers have turned back the clock to reflect a time when the spaces where people

January 2017ß

Environmental Due Diligence Can Get Sticky. Let Us, Your TEXAS Environmental Consulting Firm, Help You Navigate Through Your Environmental Risks.

Melanie Edmundson, P.G., Principal 832 485 2247 Melanie@PhaseEngineering.com

Full range of nationwide professional environmental services including: Phase I and Phase II ESAs • USTs • Asbestos • Mold • Lead • NEPA Reports Vapor Assessments • Wetlands • Property Condition Assessments

CENTRAL SOUTH TEXAS

January

BOMA AUSTIN: bomaaustin.org BOMA SAN ANTONIO: bomasanantonio.org CBA: cbaaustin.org/ CCIM: ccimtexas.com CREW AUSTIN: crewaustin.com CREW SAN ANTONIO: crew-sanantonio.org CTCAR: ctcaronline.com IREM AUSTIN: iremaustin.org IREM SAN ANTONIO: iremsanantonio.org

CREW San Antonio

CTCAR

RECA

January 25

January 24

January 10

Network Luncheon & Presentation

Ideas Forum Luncheon

11:30 am - 1 pm

11:15 am - 1 pm

Monthly Luncheon 11:30 am - 1 pm

1 Sunday

*RECA: SXSW Badges – - 11:15am – 1pm

5 Thursday

*IREM San Antonio : Board & Committee Chair Meeting 11:30am – 1pm ULI Austin : Housing and Community Development Committee Meeting

10 Tuesday

CREW San Antonio: Monthly Luncheon - 11:30am – 1pm IREM Austin: Luncheon 11:30am – 1pm

11 Wednesday

ULI San Antonio: Free Member Only Webinar - Building Healthy Corridors 12pm – 1pm

12 Thursday

CTCAR: Property Information Exchange “Extraterritorial Jurisdiction” - 7:30am – 9am IREM San Antonio: Membership Luncheon – Petroleum Club – 11:30 am – 1 pm *RECA Austin: KnockOut Night Committee Meeting – RECA Conference Room – 11:30 am – 12:30 pm ULI San Antonio: ULI Luncheon: 2017 Real Estate Outlook – The Pearl Stable – 11:30 am – 1:30 pm

17 Tuesday

18 Wednesday

RECA AUSTIN: reca.org REC SAN ANTONIO: www.recsanantonio.com RETAIL LIVE: retaillive.com TABB AUSTIN: www.tabb.org/austin_chapter.php TABB SAN ANTONIO: www.tabb.org/san_ antonio_chapter.php ULI AUSTIN: austin.uli.org ULI SAN ANTONIO: sanantonio.uli.org

*CREW Austin: Luncheon featuring Michael Kennedy of Avison Young - 11:30am – 1pm *IREM Austin: Board & Committee Chair Meeting 11:30am – 1pm *UIL Austin: YL Leadership Workshop – Umbel – 5pm – 1pm – Invitation Only BOMA San Antonio: – January 2017 Luncheon - 11:30am – 1pm CBA Austin: Luncheon - 11:30am – 1pm

January 2017

*Members Only

19 Thursday

*BOMA Austin: Membership Luncheon – Austin Country Club – 11:30 am – 1:15 pm IREM San Antonio: Learn @ Lunch - 11:30am – 1pm TABB Austin: Monthly Meeting – Texas Land & Cattle – 11:30 am – 1 pm ULI Austin: Management Committee Meeting ULI Austin: 2017 Impact Awards Ceremony & Reception 5:30pm – 7:30pm

22 Sunday

SEC Education Foundation - San Antonio: “Development – Rising from the Trenches” with William Stonaker & Chris Dischinger – Historic Menger Hotel - $125 – 8:30 am – 5 pm – www.secounselors.com

24 Tuesday

CCIM Central Texas: Networking Luncheon & Presentation - 11:30am – 1:30am RECA Austin: Ideas Forum Luncheon - 11:15am – 1pm TABB San Antonio: Monthly Meeting – Petroleum Club – 11:30 am – 1 pm

25 Wednesday

CTAR: Networking Luncheon & Presentation - 11:30am – 1pm ULI Austin: Monthly Breakfast Series - 7:30am – 9am

26 Thursday

BOMA Austin: January 26-28: BOMI RPA/PFMP: Budgeting and Accounting – 8 am – 5 pm ULI San Antonio: ULI/SA VIP Tour: HEB HQ Expansion 4:30pm – 6:30pm

27 Friday

REC San Antonio: Philip M. Barshop Founder’s Award 11:30am

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

CENTRAL SOUTH TEXAS

December

SOCIAL

CREW Austin CREW AUSTIN BOARD RETREAT CREW Austin meets to discuss the next year as well as some training on November 10, 2016

ULI SAN ANTONIO FALL MEETING Top: L to R, Steve Yndo, Chair of ULI San Antonio, and his wife, Belinda Laura Spanjian, Director for Public Policy, Airbnb L to R: Janis Ploetz, Executive Director, ULI San Antonio; Andres Andujar, CEO, Hemisfair Park Redevelopment Corporation; Julian Castro, U.S. Secretary, Department of Housing and Urban Development

BOMA SAN ANTONIO HOLIDAY & AWARD CEREMONY Top: Cherniss Award Recipient-Tim Martinez Western States Fire Protection Cherniss Award Recipient-Derek Murakami Whelan Security

IREM SAN ANTONIO HOLIDAY PARTY Top: Board Members L to R, Steve Rodgers, Lyndsay Walbran, 2017 President, Cindy Vyvlecka, Madlyn Lane, Jill Welborn, Ginger Miller, 2016 President, Diane Coliz, IAE, James Stewart.

CREW NETWORK CONVENTION NEW YORK CITY Members of CREW San Antonio

Committee Chairs L to R , William Curtis, Sally Flanagan, Bart Marlar, Holly Lopez, Brad Brauserman, Ginger Miller, 2016 Pres, Diane Coliz, IAE

CCIM, CREW & CTAR HOLIDAY PARTY

CPM of the Year Award. L to R: Diane Coliz, IAE, Lyndsay Walbran, CPM of the YEAR, Ginger Miller, 2016 President

L to R, Brian Pitman, Rick Albers & Cathy Coneway

January 2017Ã&#x;

NORTH TEXAS

January

CREW Fort Worth January 24 CREW Nights aw the FWSSR

BOMA DALLAS: bomadallas.org BOMA FORT WORTH: bomafortworth.org CORENET NORTH TEXAS: northtexas.corenetglobal. org CREW DALLAS: crew-dallas.org CREW FORT WORTH: crewfw.org/ IREM DALLAS: irem-dallas.org IREM FORT WORTH: www.fortworthirem.org

NTCAR, CCIM & SIOR 2017 BROKER FORECAST

6 pm - 10 pm

11 Wednesday

12 Thursday 17 Tuesday

BOMA Dallas: Allied Council Town Hall Meeting - 11:30am – 1pm CREW Dallas: – Mentoring Mixer - 6pm – 8pm CREW Forth Worth: Urban Adaptive Reuse – January Luncheon - 11:30am – 1pm BOMA Fort Worth: Lunch & Learn: COI – 11 am - 1pm NTCAR/CCIM/SIOR: Broker Forecast - 7:30am – 9am BOMA Dallas: Seminar: Train Your Brain for Success - 8am – 1pm IREM Dallas: 2017 January Luncheon - 11:30am – 1pm REC GFW: Member Get Together 5pm – 7pm ULI North Texas: – ULI Emerging Trends Event - 7:30am – 10:30am

18 Wednesday

CREW Dallas: January Industry Luncheon - 11:30am – 1pm *NAIOP North Texas: – Breakfast Meeting - 7:30am – 9am

19 Thursday

BOMA Fort Worth: Winter Extravaganza 2017 – Bird Cafe - 6 pm – 9 pm REC Dallas: Speaker Series : Texas Today: Big Cities, Big Challenges - 11:30am REC GFW: 2017 Tarrant County Real Estate Forecast 7:30am – 10:30am

21 Saturday

BOMA Dallas: Awards Banquet & Ceremony – The Highland Dallas - 6 pm – 10 pm

January 2017

*Members Only

NTCAR, CCIM SIOR January 12 Broker Forecast 7:30 am - 9 am

NAIOP: northtexasnaiop.com NT CCIM: chapters.ccim.com/northtexas NTCAR: ntcar.org REC DALLAS: recouncil.com REC GFW: recouncilgfw.com TABB DALLAS/FT WORTH: tabb.org/dallas_ft_worth ULI NORTH TEXAS: northtexas.uli.org

REC GFW January 19 Tarrant County Real Estate Forecast 7:30 am - 10:30 am

24 Tuesday

BOMA Dallas: BOMI Course: Electrical Systems & Illumination - 5pm – 8pm CREW Fort Worth: CREW Nights at the FWSSR! - 6pm – 10pm

25 Wednesday

CREW Dallas: CREW in the Community Kendra Scott Community Launch - 5pm – 8pm

26 Thursday

NTCAR: Stemmons Service Award Ceremony - 5:30pm – 8:30pm CORENET North Texas: Third Annual Technology Symposium - 7:30am – 10am

28 Saturday

BOMA Fort Worth: January 28 to Tuesday, January 31 BOMA Winter Business Meeting – San Diego, CA

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

NORTH TEXAS

December

SOCIAL

BOMA DALLAS

ALLIED COUNCIL PANEL DISCUSSION Top: L to R, Jenny Phillips, Monica Danchik & Lauren Hampton L to R,Sarah Buckles, Andrea Scomanno, Janet Dempsey, Cliff Parker, Jenny Phillips, Sarah Marques

REC FW & CREW FW HOLIDAY PARTY

Top: L to R, Charlie Fowler,Stantec, Bo Trainor, Brown & Gay Engineers & Randy Landers, Speed Fab-Crete Corp. L to R, Susan Cheyne, LegacyTexas Bank, Matt Spivey, LegacyTexas Bank, Ginger Johnson, LegacyTexas Bank L to R, Laurie Fleiner, Mansfield EDC, Early Davis, Republic Title of Texas, Rian Maguire, CHC Development

CCIM

SPORTING CLAYS EVENTS Top: Top Team at the CCIIM Sporting Clays shoot was CRK Construction Partners.

REC GFW

MEMBER GET TOGETHER Top: L to R, Rachel Albright, REC of GFW; Karen Vermaire Fox, REC of GFW & Becky Eaton, GL Seaman & Company L to R, Sarah Walls, Cantey Hanger LLP, Early Davis, Republic Title of Texas; and Lauren Coon, Marsh & McLennan Agency

CRE

LADIES IN CRE L to R, Cami Keeney, Lindsay Stuckey, Sarah Savage, Katie Savage

The North Texas CCIM Chapter honored Mr. Ralph Bullard of Bullard Construction for his continued support of the chapter for over 22nd years! The chapter has created an endowed scholarship in his name. David Schnitzer, CCIM, Venture Commercial and George Tanghongs, CCIM, Lee and Associates Saadia Sheikh, North Texas CCIM Chapter President, E Smith Realty Partners; Susan McClure, CCIM, McClure Partners and Sponsor and Debi Carter, CCIM, Capstone Commercial January 2017Ã&#x;

ACRP: acrp.org BACREN: bacren.com BOMA HOUSTON: houstonboma.org CCIM HOUSTON: ccimhouston.org CETA: cetalliance.com CORENET: houston.corenetglobal.org C.R.E.A.M.: creamtx.com CREN: crengulfcoast.com CREW HOUSTON: crewhouston.org FBSCR: fbscr.com

SOUTHEAST TEXAS

January

BACREN January 19

CCIM Houston

Monthly Luncheon

CREW Houston: 2017 Luncheon - 11:30am – 1pm

6 Friday

CREN: – Luncheon - 11am – 1pm

10 Tuesday

*Greater Houston Partnership: Member Engagement Meeting - 9am – 10:30am

11 Wednesday

BOMA Houston: Seminar – Energy Codes - 9:00am – 10:30am C.R.E.A.M. : January Luncheon - 11am – 1pm CCIM Houston: January Luncheon - 11:30am – 1pm *Greater Houston Partnership: Member orientation Meeting - 3pm – 4:30pm

13 Friday

IREM: IREM January Luncheon - 11:30am – 1pm

17 Tuesday

FBSCR: Monthly Breakfast Meeting - 8am – 9am

18 Wednesday

ULI Houston: – Young Leaders & Rice University: Capital Markets Roundtable - 6pm – 8pm O'CONNOR & ASSOCIATES: Office Forecast Luncheon 11:30am – 1pm

19 Thursday

BACREN: – Monthly Luncheon January 2017 - 10:30am – 1pm Greater Houston Partnership: – 2017 Annual Meeting - 11:45am – 1:30pm

January 2017

January 11

11:30 am - 1 pm

5 Thursday

12 Thursday

C.R.E.A.M.

January 12

10:30 am - 1 pm

*Members Only

GREATER HOUSTON PARTNERSHIP: houston.org HRBC: www.houstonrealty.org HREC: houstonrealestatecouncil.org IREM HOUSTON: iremhouston.org NAIOP: naiophouston.org O'CONNOR & ASSOCIATES: poconnor.com SIOR: www.sior.com TABB GROUP: www.tabb.org ULI: houston.uli.org

January Luncheon 11 am - 1 pm

20 Friday

CREN: Marketing Session - 7:30am – 9am

24 Tuesday

ULI Houston: 2017 Development of Distinction Awards 6pm – 9pm

25 Wednesday

CETA: Sales Tax Seminar: Intro to the Economic Development and Hotel/Motel Sales Tax - 9am – 1pm

26 Thursday

CETA: Morning Brew - 9am – 10am CREN: Happy Hour - 4:30pm – 7pm TABB Houston: January Luncheon – Speaker: Jesse Thompson with The Federal Reserve – The Palm Restaurant – 11:30 am – 1:30 pm

27 Friday

CREW Houston: UCREW Program – Texas A&M University - 12pm – 2pm HRBC: Breakfast meeting panel discussion

31 Tuesday

CORENET: Annual Awards and Market Overview - 11am – 1:30pm

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

SOUTHEAST TEXAS

December

SOCIAL

CCIM

NOVEMBER LUNCHEON L to R, Ross Perez, Marilynne Clark, Shamez Pirani

CREW HOUSTON

C.R.E.A.M.

NOVEMBER LUNCHEON

MUGSHOTS & MARTINIS

Top: L to R, Chris Pruitt, Cathy Deaton, Scott Deaton

Top: L to R, Sarah Montgomery, Rahila Sultanali, Emily Lancaster, Amy Welp & McKenzie Followwill

L to R, Ryan Hutson, Frank Mitchell, Jonathan Roach, Jennifer Horan

L to R, Julie Caggiano, Lori Sowa, Akia Smith, Leonor Poindexter

BOMA HOUSTON

1ST ANNUAL AWARDS EXTRAVAGANZA Houston BOMA’s first Annual Awards Extravaganza

CORENET HOLIDAY PARTY

BACREN

2017 BOARD MEMBERS Back Row: L to R, Jeff George, Adrian Combs, Cindy Mach, Shawn Budhwani, Ramona Little, Wayne Rutledge, Jan Briggs Front Row: L to R, Donna Eckels, Erica Balaban, Randy Drake, Rosebud Caradec

L to R: Joe Price, Scott + Reid, Raymond Romero, Inventure, Cari Nave, CRG, Alyssa Turner, ACS Flooring L to R: Daina Pitzenberger, Linbeck, Dawn Landry, Balfour Betty (CoreNet President)

CCIM

HOLIDAY PARTY Top: L to R, Kristen Wiehe, ARA Houston & Gary Martin, CCIM, Wells Fargo L to R, Gary Martin, CCM, Wells Fargo & Paula Bruns, CCIM, Colvill Office Properties L to R, Sandy Benak, Granite & Gary Martin, CCIM, Wells Fargo L to R, Gary Martin, CCIM, Wells Fargo

January 2017ß

CENTRAL SOUTH TEXAS bulletin

AUSTIN, TX MIXED USE DEVELOPMENT During a special called meeting on Dec. 6, Austin City Council gave the second of three approvals necessary for The Grove at Shoal Creek’s Planned Unit Development rezoning request to go through. The project is located on 75 acres near 45th street and Bull Creek Road that developers bought for about $47 million from the Texas Department of Transportation. MULTI-FAMILY SALE Bell Partners Inc. of Greensboro, North Carolina, purchased Aria Steiner Ranch, a 302-unit apartment community at 4800 Steiner Ranch Blvd. Charles Cirar of CBRE Group Inc. handled the transaction.

Photo courtesy BuildingATX

AUSTIN, TX DOWNTOWN BLOCK DEVELOPMENT

Eight companies or partnerships have submitted proposals to the City to transform the downtown site just south of Republic Square Park & close to W Austin Hotel. The property is currently a surface parking lot at 300 Guadalupe St. According to Austin American-Statesman, the firms that have submitted bids are: Cielo Property Group with Gables Residential, Cousins Properties Inc, Endeavor Real Estate Group LLC, Hanover Co. with Brandywine Realty Trust, Lincoln Property Co., Riverside Resources, Southwest Strategies Group and The Presidium Group. Developers can buy the land or sign a group lease & construct a mixed-use development. Will Douglas has returned to CBRE Group as a tenant representative

Laura Underwood has been appointed as business development manager for Veritas Title Partners

The Real Estate Council of Austin honored Travis County Commissioner Gerald Daugherty with its top annual award – the 2016 Gary S. Farmer Commendation of Excellence.

January 2017

MULTI-FAMILY SALE An entity named 739 W. William Cannon LLC purchased The Place at West Village, a 255unit apartment complex at 739 W. William Cannon Drive. Ellen Muskin and Daniel Elam of Muskin Commercial LLC represented the unidentified seller. OFFICE SALE Austin real estate investor Nate Paul, the founder of World Class Capital Group, purchased the 13 building, 547 sf, Class B office property located at 2100 Kramer Lane from Dallas-based Westmount Realty Capital. The property reportedly sold for $84.8 million according to Real Capital Analytics. OFFICE SALE Stockbridge Capital Group LLC based in San Francisco purchased a three-building portfolio in Tech Ridge at 710, 810 & 820 W. Howard Lane The purchase price of the 1,023,122 sf property was $107 million, according to the seller TA Realty LLC. OFFICE SALE Mark IV Capital Inc. of Newport Beach, California, purchased Pecan Park, a 136,444 sf office building at 10800 Pecan Park Blvd. near the intersection of US Hwy. 183 and SH 45. Equis Group was the seller. Evan August of Eastdil Secured handled the transaction. OFFICE SALE Long View Equity, an Austinbased real estate investment firm, purchased the 34,432 sf Houston Building at 9015 Mountain Ridge Drive in Northwest Austin. Todd Gold with REOC in San Antonio

represented the seller and Scott Herbold with CBRE Group Inc. represented the buyer. RETAIL SALE An unidentified investor purchased the 43,261 sf Oak Hill Center at 6705 W. Highway 290. The property is located at the corner of William Cannon Drive. Michael Buckner & Richard Mireles with Marcus & Millichap handled both sides of the transaction. SELF-STORAGE SALE Westport Properties Inc., a company based in Irvine, California, purchased a fourproperty self-storage portfolio that included facilities at 201 W. Stassney Lane. HFF represented the seller, a joint venture partnership of Woodbridge Capital Partners LLC & RHW Capital Management Group, LLC, both based in the Los Angeles area.

BOERNE, TEXAS MIXED-USE DEVELOPMENT Dallas-based developer Caron Thompson has teamed with local investors to buy 26.6 acres for a mixed-use development. Unofficially named The Village@ Herff, the property is located at the intersection of SH 46 & Herff Rd. It will include apartments, retail & a restaurant. The Weitzman group handled negotiations on behalf of the buyer & will handle retail leasing.

CONVERSE, TEXAS INDUSTRIAL DEVELOPMENT The land at the intersection of FM 1976 and Cimarron Trail will be developed with a business center and industrial flex complex. Work is expected to begin on the I-1 zoned area in early 2017. Phase One of the two-phase development will house five buildings providing a total of 42,950 sf of lease space.

HELOTES, TEXAS VACANT LAND SALE Rocksprings Capital has sold a 1,590 acre property outside of San Antonio to Southerland Communities for residential development. The land is located off Texas 16 and Park Rd. 37. The buyer plans to change the name to Canyon Creek Preserve and develop ranches with 25 acres or more, according to Rockspring Capital.

LAKEWAY, TEXAS RETAIL SALE CANCELLATION The $114 million sale of the Oaks at Lakeway by Stratus Properties Inc. has been cancelled. Stratus Properties agreed Oct. 4 to sell the nearly 237,000 sf shopping center to TA Realty LLC. However, Stratus said in a Nov. 25 securities filing that the Boston based Real Estate Investment Company, TA Realty, cancelled the purchase on Nov. 18 – the last day of a 45-day inspection period.

LIVE OAKS, TEXAS RETAIL CONSTRUCTION IKEA is buying 31 acres at the corner of I-35 and Loop 1604 for the development of a retail store. The seller is Dallas-based real estate firm The Weitzman Group. Weitzman’s construction arm, Cencor Realty Services, will be helping the Swedish retailer throughout the development process.

ROUND ROCK, TEXAS EDUCATION BUILDING CONSTRUCTION Children’s Lighthouse, an early education center, will build an 11,121 sf facility at 4350 E. Old Settlers Blvd. in Round Rock. Russ Howard with Caswell Commercial handled the transaction. The facility is expected to open early next year. OFFICE BUILDING CONSTRUCTION Performance Services, a specialized construction company based in Indianapolis, purchased a 16-acre site at 810 E. Old Settlers Blvd. in Round Rock. Performance Services will build a commercial office building that will allow it to consolidate regional operations in Texas. Sam Own and Will Nichols with Stream Realty Partners represented the seller, and John Scoblick and Alecia Burdick with Savills Study represented the buyer.

SAN ANTONIO, TEXAS INDUSTRIAL SALE CLN/WWMK, LP sold a 17,229 sf office/warehouse building located on 6.518 acres at 5300 SE Loop 410 to LBL 5300, LLC. Jason Schnittger & Michael Kent of Stream Realty represented the seller & Nick Prater of 4M Realty represented the buyer.

ALLEN, TEXAS OFFICE BUILDING CONSTRUCTION

Dallas developer Bill Cawley is building a 3-story, 100,000 sf $30 million office building within Allen’s Watters Creek between Bethany and Legacy drives at Watters Creek along North Central Expressway. Cawley Partners has teamed up with a partnership led by Fort Worth-based Trademark Property Co., which owns the land, on the project.

BURLESON, TEXAS MULTI-FAMILY DEVELOPMENT Irving-based real estate development firm Realty Capital Management has received economic incentives from the City of Burleson to start a $25 million development on the city’s Main Street. The four story, 200-unit apartment community, called the Depot on Main, with live-work units will sit on a 5-acre tract at the northwest corner of King and Main Streets.

CARROLLTON, TEXAS INDUSTRIAL SALE

WRF Investments Inc. purchased the 120,280 sf building Prologis Trinity Mills 3, located at 2425 Camp Ave. from Lightning PropCo I, LLC. Ryan Boozer & Todd Poticny with Stream Realty Partners represented the buyer and Nathan Denton with Lee & Associates represented the seller.

RETAIL SALE

Pierson Retail Advisors announces the sale of Hebron Heights, a 31,992 sf neighborhood center located at 1012 W. Hebron Parkway. PRA represented the seller, a Texas ownership group. An out-of-state buyer purchased the asset for an undisclosed price.

DALLAS HOTEL SALE

of Stream Realty represented the landlord, DRA Advisors.

INDUSTRIAL SALE

MOFAM, LLC sold its 43,140 sf building located at 8400 Ambassador Row in Dallas to 8400 Ambassador Row, LLC. Jason Moser with Stream Realty Partners represented the seller & Altschuler & Company represented the buyer.

MULTI-FAMILY SALE

A Dallas-based real estate investment firm has expanded its North Texas holdings, adding 640 apartments in the region to its growing portfolio. The investment firm, Presidium Group LLC, acquired the Linda Vista Apartments & Carlton Court Apartments in Dallas, which will both be re-branded and upgraded as part of the firm’s acquisition strategy.

OFFICE LEASE

Kimley-Horn, a planning, engineering, surveying & landscape architecture firm, is relocating to 45,646 sf in the Galleria Office Towers at 13455 Noel Road. Celeste Fowden, Shannon Brown & Kenzie Killgore with CRE represented the landlord & Charles Daggett, Dina Zavislak, Stephen Hemphill & Jenny Aust Turner with Mohr Partners represented the tenant.

OFFICE LEASE

Freeman Audio Visual leased 202,137 sf of space at I-30 Business Center III near I-3 and Loop 12. Tom McCarthy & Elizabeth Jones of JLL represented the tenant & Kacy Jones & John Henricks of CBRE represented the landlord.

OFFICE LEASE

HCSC (Blue Cross Shield Innovation Center) leaseed 31,632 sf at Factory 603 at 603 Munger Ave. in Dallas. Terry Mostrom & Frank McCafferty of Savills Studley represented the tenant. Aarica Mims of Granite Properties represented the landlord.

OFFICE LEASE

A partnership between North Palm Beach, Florida-based Driftwood Hospitality Management LLC and an institutional real estate investor has acquired the Sheraton Dallas by the Galleria in North Dallas. The seller, HEI Hotels & resorts, was represented in the deal by HFF.

24/7 Customer Inc. has signed a lease for 34,098 sf at Gramercy Center South at 18451 North Dallas Parkway in Dallas. Dallas-based Site Selection Group represented the tenant. Matt Wieser & Ryan Evanich of Dallas-based Stream Realty represented the landlord, Capridge Partners.

INDUSTRIAL LEASE

OFFICE SALE

ATC Transportation LLC leased 75,676 sf at 12750 Perimeter Drive in Dallas. Hanes Chatham of Stream Realty Partners represented the tenant. Matt Dornak & Ryan Wolcott

Foundry Commercial, an Orlando, Florida-based real estate investment firm, purchased the 17-story, 280,000 sf office tower at 8080 North Central Expressway in

Dallas to a partnership formed by Foundry Commercial and Bostonbased Intercontinental Real Estate Corp.

OFFICE SALE

The Patel Law Group, PLLC purchased a 30,694 sf office building located at 1125 Executive Circle under its asset ownership group, 1125 Executive, LLC. Kyle Jacobs & Daniel Miller with Rubicon Representation represented the buyer & Bruce Hecht & Ben Goldthorpe of Swearingen Realty Group represented the seller, American College of Emergency Physicians.

DENTON, TEXAS RETAIL SALE

Fidelis Realty Partners purchased the 252,000 sf Rayzor Ranch Marketplace located on the northeast corner of SH 380 and I-35. The overall center contains 641,000 sf including the Walmart, Sam’s Club and Kohl’s shadow anchors. The acquisition also included approximately 18 acres of development land.

FORNEY, TEXAS

NORTH TEXAS

bulletin Longtime real estate broker Cynthia Cowen has joined Dallas-based Hall Group’s leasing team.

Global real estate brokerage firm JLL has acquired Dallas based Integra Realty Resources. CREW Dallas would like to proudly announces Michelle Hudson as the 2016 Outstanding Achievement Award Winner!

Tracy Simmons has joined Newland Communities as Regional Director of Marketing

MASTER-PLANNED DEVELOPMENT

A $1billion, 2,000 acre masterplanned community known as Gateway Parks in Forney is expected to bring its first homes to market by early next year. Its initial phase of 439 single-family homes will be marketed to residents starting in the mid - $200,000s. Petro-Hunt LLC is developing the project under Gateway Holdings LP.

FORT WORTH, TEXAS MEDICAL OFFICE SALE

An undisclosed buyer purchased a 57,404 sf multi-tenant medical office building at 900 Jerome St. in Fort Worth for $19.2 million. Toy Scrivner, Jeff Matulis, Grant Wilkins & Colin Cornell of the Stan Johnson Co. represented the seller, Ridgeline Capital Partners.

Susie O’Neill Priebe has joined Newland Communities as Sale Manager

Steve Maglisceau has joined Newland Communities as Project Manager.

FRISCO, TEXAS MULTI-FAMILY SALE North Carolina-based Bell Partners Inc. purchased a 360-unit apartment community in Frisco which is a 12-building property located at 1801 McCord Way. It will be renamed Bell Frisco at Main.

Younger partners and NOVUS Realty Advisors have merged their Dallas-based commercial real estate firms. Kathy Permenter and Moody Younger, will continue in their roles as Seniors Partners and will add the seasoned leadership of Robert Grunnah, Sam Kartalis, and their innovative brokerage group to the new Investments | Land team of Younger Partners.

January 2017ß

SOUTHEAST TEXAS bulletin

CLEAR LAKE, TEXAS

WA Development represented the landlord.

Trey Strake represented Blake Falcon Energy.

INDUSTRIAL SALE

MULTI-FAMILY SALE

OFFICE SUBLEASE

Gemini Business Park has been sold to Gemini BP, LP for an undisclosed price. The property is located at 902-903 Gemini Street and has (3) flex/office/warehouse space buildings in 142,315 sf on 8.46 acres of land. Preston Yaggi, SIOR, CCIM & Ryan Searle of Lee & Associates represented the seller. Fred Ghabriel of Bejjani & Associates represented the buyer.

HOUSTON, TEXAS HOTEL/CONVENTION CENTER CONSTRUCTION Hanover photo credit. Renderings: Solomon Cordwell Buenz

HOUSTON, TX LUXURY APARTMENT CONSTRUCTION

Hanover Co. purchased a nearly 1.7-acre site off Kirby Drive near Kipling Street, near the West Ave mixed-use project. The developer plans to build a 40-story, 300-plus-unit apartment tower and a standalone restaurant on the property. Hanover hopes to start construction on the $50 million project, designed by Chicago-based architecture firm Solomon Cordwell Buenz, within the next 12 months. Ray Laugher has joined Caldwell Companies as its Vice President of Business Development.

Jim Oyer has joined Signorelli Company as its new CFO.

Steve Johnson has joined Allegiance Title as Vice President/Business Development at their Galleria office.

Todd Moore of Stan Johnson Company has been promoted from Associate Director to Director

The Texas Medical Center plans to push forward on its planned hotel & convention center. The hotel is expected to open in 2020 and will be the first construction for the planned TMC3 campus, a 30-acres district focused around life science and health care commercialization.

HOTEL CONSTRUCTION

Devan Lodging Group LLC is developing a 120-room Hilton Homewood Suite at 9450 Katy Freeway. The hotel will deliver in the end of 2017 or the beginning of 2018

HOTEL SALE

Brookfield Property Partners purchased the Double Tree by Hilton Houston Downtown from Cornerstone Real Estate Funds. This is a 350-room, full service hotel completed in 1980 at 400 Dallas St. within the Allen Center mixed-use development in Houston’s central business district. John Bourret, Austin Brooks, Colby Mueck & Daniel Peek of HHF’s investment sale team represented Cornerstone in the disposition.

INDUSTRIAL LEASE

Eurocherm International Corp. leased the entire 8,000 sf building at 3023 Farrell Road, Reed Vestal, Cameron Hicks and Taylor Schmidt of Lee & Associates represented Eurocherm, while Mike Spears and Robert Noack represented the landlord.

INDUSTRIAL LEASE Marc Peeler of Stan Johnson Company has been promoted from Associate to Associate Director.

January 2017

4C2 Electrical leased 12,246 sf in Corporate Center Shepherd at 707 N. Shepherd Drive. Bill Stone with Cushman & Wakefield represented the tenant & David R. David & Drew Beeson with

Affiliates of Dallas-based Knightves Capital have acquired four multifamily projects totaling 1,067 units. The properties, known as the Triden portfolio were built between 1993 and 2001 and have an average occupancy of 95 percent. The complexes sold are the: 216-unit: Seasons Apartments, 210-unit: Beverly Wilshire Apartments, 345-unit Meyer Park Community & 296-unit Meyer Park Lakeside. ARA Newmark arranged acquisition financing of $84 million through Freddie Mac.

OFFICE LEASE

TX Alcohol and Drug Testing Services (TADTS) have leased 22,580 sf at the Lantern Bend Medical Plaza at 411 Lantern Bend Drive. The organization is scheduled to take occupancy in February. Peggy Rougeou & Kim Brake of Tarantino Properties represented the landlord, DBSI Discovery Real Estate Services.

OFFICE LEASE

The Houston Technology Center leased 20,000 sf in the Energy Corridor on a former Exxon Mobil campus. The HTC is expected to open the facility at 13501 Katy Freeway in early 2017.

OFFICE LEASE

Two Houston-based companies will be relocating their headquarters to 250 Assay St., a new five-story, 86,523 sf building scheduled to deliver June 2017 within Generation Park in Houston. Apache Industrial Services will shift its headquarters from 15423 Vantage Parkway E. to 35,530 sf across the top two floors at 250 Assay St., while McCord Development, the developer of Generation Park, will occupy 17,309 sf on the second floor. Transwestern’s Chace Henke and Nick Hernandez along with McCord Development’s John Flournoy represented McCord Development in the lease negotiations.

OFFICE SUBLEASE

Black Falcon Energy has signed a deal to sublease Contango Oil & Gas.’ former 16,579 sf space in the office building at 717 Texas Ave. in Houston’s central business district. Edward Prejean and David Bale of JLL represented the subleaseor, while Cushman & Wakefield’s

Asset Plus Cos. has subleased 29,026 sf in the office building at 950 Corbindale Rd. in Houston. Dan Boyles of NAI Partners represented Asset Plus Cos. in negotiations, while Richard Plessala of American Medical Resources represented the subleaseor.

OFFICE SALE

KBS Growth & Income REIT of Netport Beach, purchased The Offices at Greenhouse from Stream Realty Partners-DFW. The building is a 203,149 sf , five story office building completed in mid-2014 just south of I-10 and near Methodist West Houston Hospital & the Katy Green retail development in Houston’s Katy/ Grand Parkway West submarket. Jared Chua of CBRE handled the disposition on behalf of Stream.

RETAIL LEASE

Northern Tool + Equipment, a Minnesota-based hardware chain has leased 18,000 sf at the Willowchase Shopping Center, just across from Willowbrook Mall at 12900-12974 Willowchase Drive in Houston’s Fairfield retail submarket. The store is expected to open in the first quarter of 2017. Carson Wilson of Fidelis Realty Partners represented the landlord.

KINGWOOD, TEXAS MEDICAL OFFICE SALE

Irvine, CA-based HCP has acquired the 90,000 sf Kingwood Medical Arts building located at 300-350 Kingwood Medical Dr. in Kingwood, TX from Origin Investments & Transwestern for an undisclosed amount. Scott Carter & Eric Johnson of Transwestern represented the sellers in the transaction.

ROSENBERG, TEXAS RETAIL DEVELOPMENT

Gamal Enterprises has acquired ten acres at the northeast corner of FM 2218 & Center Blvd. for a retail development. The site was purchased for $1.45 million. McAlister Real Estate assisted in the acquisition.

ADVERTISER INDEX

A. A. Realty Company 17 Avison Young 1, 5 Big Spring EDC 15 Caldwell Companies 7 Capital Retail Properties 22, 23 CCIM Houston 27 CREW San Antonio 29 First Choice Striping 8 First Warranty 19 Greenberg & Co. 19 Hankamer 42 Levcor, Inc. 21 National Environmental Services, LLC 43 Paris Economic Development Corporation 13 Phase Engineering, Inc. 30,44 Plus Corp 29 RBF Credit Union 8

classifieds & index Showalter Law 41 Southwest Realty Advisors 19 Stream Realty Partners 2, 21 Tarantino Properties Inc 9 Waller County EDC 8 Wulfe & Company 3

In Next Month's Issue... Office Medical/Industrial

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ray’s buzz

Leave Yourself Open To Random Encounters and Random Experiences In Your Business and Personal Life

RAY HANKAMER

BY RAY HANKAMER rhankamer@gmail.com

When I was 19 and working for a travel agency which took students to Europe, I was told on the pier in New York that I was the odd man out in our group and would have to share a double cabin with a stranger on the Atlantic crossing-five days. My first thought: Cool!

And cool it was. Sam was 33 and while he was waiting for his elderly father to pass away, he was studying languages in Europe – just what I was headed over to do (not the father bit). One difference: Sam spoke fourteen of them, including really difficult ones like Finnish, Japanese, and Serbo-Croatian. He taught me his tricks to learning a language…just what I needed at that very moment!

When he learned that I was headed to University of Geneva to spend a year, he told me to go directly to La Clemence (“Clemency”- it was across the square from the Palais de Justice!!)

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He said “This tiny bar is the navel of Europe-everybody passes through that little bar.” And he was right.

I met my roommate there-a Munich boy who has since been a lifelong friend; I met my French girlfriend there, and she later came to Houston and enrolled in Rice, and we remain friends; and many, many other interesting people. All this because I wasn’t programmed. I took a random shot at crossing the Atlantic on the SS Rotterdam with a total stranger. I never saw him again, but because of my taking a chance with him, my stay in Geneva was hugely enhanced…including having a very close and devoted French teacher. Sometimes we win big by playing the unexpected card!

Many of us feel like our calendars need to be, filled in days or weeks in advance…that ‘executive assistant' need to screen our calls and filter who gets in to see us at the office, and that we never leave town on a leisure trip without a small posse of close friends from home.

Many people subconsciously build a ‘bubble of deference’ around themselves, avoiding new encounters with new and strange and different people, feeling it is best to be surrounded with others who know them and ‘who they are’.

H &

To follow this behavior is to wall one’s self off from all new experience.

Random is good. Go to a new place by yourself and sit at the bar alone. You may meet someone who will change your life. If it is a slow night, you may discover a very interesting philosopherbartender.

If you play golf, asked to be included in a foursome with unknown people instead of your regular group. When you go to a new town, get a haircut in a cool part of the town (even if you don’t quite need one yet)-barbers are fountains of just the kind of information you might profit from.

Set yourself up to be free…to be free to meet new people and to go to new art galleries or new restaurants or new towns. Get your life out of the (pleasant/unchallenging) groove it is in-you may find something more pleasant, or more profitable. Remember what Alfred, Lord Tennyson said: “I am a part of all that I have met, yet all experience is an arch wherethrough gleams that untraveled world, whose margin fades forever and ever when I move.”

Shuffle your deck!

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