HOUSTON'S BIGGEST INDUSTRIAL SPEC BUILDING UNDER WAY
HOUSTON, Tex. — If passersby think a new airport is going in, that's understandable. After all, an airplane could land on the massive 1,600-foot-long foundation now being poured along Hwy. 290 in northwest Houston.
The foundation is the first on a campus that will eventually total more than 1.3 million square feet of spec industrial, service center and flex buildings. According to James M. Stark, vice president of industrial properties for CB Richard Ellis in the Houston Galleria office, the project is the largest spec industrial project in Houston. The project will be owned by CB Richard Ellis Strategic Partners.
With more than 644,000 square feet, Building A at Alamo Crossing Commerce Center is the largest in the five-building project. It will feature superflat floors and a 30-foot clear height. Buildings B and C will encompass 123,800 and 119,140 square feet respectively with 24-foot clear height and offices to suit. Buildings D and E will have 159,800 and 300,000 square feet, respectively, 30-foot clear height and superflat floors.
Occupancy is slated for third quarter 2001. For details go to alamocrossing.com or call Jim Stark at 713-840-6531.
SURVEY REVEALS PRIVACY CONCERNS
WASHINGTON, D.C. — Four out of five home buyers and sellers are concerned that banks will use consumers’ private, confidential financial information to sell them real estate services should the federal government allow banks to enter real estate brokerage, according to a survey released by the National Association of Realtors.
"This study reveals the deep concerns consumers have about the lack of privacy protection provided by banks and current banking laws," said NAR President Richard A. Mendenhall. "Extending real estate brokerage powers to banks will only make the situation worse."
D-FW EXISTING HOME SALES DECLINE
DALLAS, Tex. — February sales of existing homes in the Dallas-Fort Worth area fell by 6 percent compared with sales for February 2000 while the inventory of existing homes increased by 12 percent.
Areas as diverse as Old East Dallas, Richardson and The Colony recorded double-digit percentage drops in sales. Area Realtors are not pessimistic though.
"Most people don’t expect this to last too long," said Michael Grossman of Uptown Realtors.
"Last month was not a great month, but this month is already setting new records for us," said Jim Fite of Century 21 Judge Fite Realtors.
MORTGAGE RATES CHANGE LITTLE, HOME APPRECIATION BEATS INFLATION
McLEAN, Va. — The average rate on a 30-year, fixed-rate mortgage is 6.91 percent this week, with an average 0.9 point, up very slightly from last week's rate of 6.89 percent, according to Freddie Mac's Primary Mortgage Market Survey. A year ago, 30-year, fixed-rate mortgages averaged 8.23 percent.
The average 15-year, fixed-rate mortgage is 6.46 percent, with an average 0.9 point, up from 6.44 percent last week. A year ago, 15-year, fixed-rate mortgages averaged 7.84 percent.
"Over the last few weeks mortgage rates have been fairly stable and very low," said Robert Van Order, chief economist for Freddie Mac. "Housing continues to do well. For example, house prices across the nation are rising at an annualized rate of 8.4 percent, according to Freddie Mac’s Conventional Home Mortgage Price Index." Based on February’s consumer price index the annualized inflation rate is 3.7 percent.
In the West South Central Division, which includes Arkansas, Louisiana, Oklahoma and Texas home values increased 1.5 percent (6 percent, annualized) in the fourth quarter of 2000. Over the last 12 months, home values increased 6.7 percent, and during the last five years, home values increased 26.8 percent.
MANUFACTURED HOME PROJECT LOTS AVAILABLE NEXT MONTH
SAN ANTONIO, Tex. (San Antonio Business Journal) — Walzem Park is a new 120-acre, gated manufactured home community on the northeast side of San Antonio. Developer James Allen sold the land that was originally called Converse Heights last year to developer Leeper-Yoggerst Interests, Inc.
Ninety acres have been set aside for 410 lots at the subdivision located at 7500 Paradise Road off Walzem Road. Next month, 177 lots will be ready. The rest should be available in August. The 90 acres will include a community center and pool. The other 30 acres will be used for recreational amenities such as baseball and soccer fields and a nature preserve.
SEGUIN PLANT TO CLOSE
SAN ANTONIO, Tex. —Cavco Industries, LLC, a builder of manufactured homes, plans to stop operations at its Seguin plant for one to two years. About 75 of its 110 employees will be laid off by the end of May.
Cavco opened the Seguin plant in February 1999, when sales of manufactured homes were booming. Sales slipped in 1999, and the market fell apart in 2000. A company spokesman said that there is now a glut of houses on the market partly because of the large pool of repossessed homes.
MEXIA ZONING FACES OPPOSITION
MEXIA, Tex. — Hundreds of residents turned out at Mexia’s City Council meeting Tuesday to voice their opinions about a proposed zoning ordinance. City Manager Lambert Little views the ordinance as a way to plan growth and protect property values.
Small business owner Bob Meyers expressed the concerns of some residents, saying the ordinance is "too overbearing and restrictive." Landscaping and parking requirements were among the issues addressed by the ordinance.
EIGHT HOTELS BOUGHT BY JOINT VENTURE
DALLAS, Tex. (Dallas Business Journal) — Hotel real estate investment trust FelCor Lodging Trust, Inc. and Pittsburgh-based Interstate Hotels have purchased seven Marriott Hotels and one Hampton Inn, with a total value of $77 million.
The hotels are in Atlanta, Dallas, Houston and Scottsdale, Ariz. Each partner will have a 50 percent stake in the joint venture.
HOUSTON LIGHT RAIL CONTRACT AWARDED
HOUSTON, Tex. (PRNewswire) — Siemens Transportation Systems, Inc. of Sacramento, Calif, has been awarded a contract from Houston METRO for the design and manufacturing of a turnkey light rail project, including 15 light rail vehicles.
The project will be a 7.5 mile-light rail line running from downtown Houston to Reliant Park (the Astrodome).
March 27, 2001
NEW HOME SALES DOWN BUT STILL STRONG
WASHINGTON, D.C. — Sales of new single-family homes fell to a seasonally adjusted annual rate of 911,000 units in February, down 2.4 percent from an upwardly revised number in January, the Commerce Department reports.
Bruce Smith, president of the National Association of Home Builders, said that any figure more than 900,000 is very strong. Smith credited low rates on home mortgages for maintaining buyer demand.
EXISTING HOME SALES DOWN SLIGHTLY
WASHINGTON, D.C. — Sales of existing single-family homes dipped slightly last month from a strong January pace but remained at exceptionally high levels, according to the National Association of Realtors (NAR). Existing home sales edged down 0.4 percent in February to a seasonally adjusted annual rate of 5.18 million units from 5.2 million units in January.
Dr. David Lereah, NAR’s chief economist, said, "The interest rate on a 30-year, fixed-rate mortgage has dropped one-and-a quarter percentage points in the last year — that means there are about 300,000 additional households that can afford to buy a home today that couldn’t qualify for a loan a year ago."
WILLOWBROOK MALL SOLD
HOUSTON, Tex. — Willowbrook Mall, at the intersection of FM 1960 and Texas 249, sold for $144.9 million to Chicago-based General Growth Properties, Inc. and GGP/Homart II, LLC, a New York State retirement fund. The joint venture bought the mall from Lend Lease Real Estate Investments, Inc., a pension fund.
The mall, built in 1981 and remodeled in 1992, has 423,000 square feet and is 92.5 percent occupied. Dillard’s, Foleys, JCPenney, Lord &Taylor and Sears are anchors. The May Co. is considering leasing the space formerly occupied by Montgomery Ward.
WATER-THEMED DEVELOPMENT IN LEAGUE CITY
LEAGUE CITY, Tex. (Houston Business Journal) — The League City Council approved a master plan to transform 1,000 acres into "League City River Market" and has chosen Richard Browne Associates, designers of The Woodlands water-themed development, as the designers.
Groundbreaking on the project is not expected for about two years. The project will include an amphitheater, nature conservancy, lagoon park, marinas, hotel, office park and multifamily housing.
New developers interested in the project will have to go through the city to make sure they comply with zoning regulations.
LOFTS NEAR MEMORIAL PARK
HOUSTON, Tex. (Houston Business Journal) — Houston-based developer The Property Group is developing the Memorial Cove Lofts, a four-story, 20-unit condominium building at Memorial Drive and Glen Cove. The new building will be The Property Group’s first Houston development. The lofts will range in price from $274,900 to $700,000.
PRESTON FOREST VILLAGE PURCHASED
DALLAS, Tex. (Dallas Business Journal) — An investment group led by Dunhill Partners, Inc. of Dallas has purchased Preston Forest Village shopping center, a 166,000-square-foot center in North Dallas.
The center, which is about 95 percent leased, is anchored by Whole Foods, Ulta and Mi Cocina. It will be leased and managed by Dunhill Partners.
UTILITY MOVES FROM DOWNTOWN
AUSTIN, Tex. (Austin Business Journal) — Southern Union Co. is moving its headquarters from Lavaca Plaza in downtown Austin to a 48,000-square-foot space on South MoPac Expressway. The newly leased space will be in Barton Skyway IV, a 220,000-square-foot office building that Prentiss Properties Acquisition Partners, LP is developing.
MASTER-PLANNED COMMUNITY IN NORTH AUSTIN
AUSTIN, Tex. (Austin Business Journal) — Developers of a project that does not yet have a name have been offered $5 million worth of incentives from the City of Austin. Within the next few weeks, plans for a 252-acre, master-planned community on Dessau Road in North Austin will be filed.
The project qualified for the incentives because it designated a portion of the land as a Traditional Neighborhood District park and because it adheres to the city’s Smart Growth program, which encourages development in areas designated as Desired Development Zones.
Milburn Homes will develop single-family homes in the Traditional Neighborhood District of the community. The project is expected to cost $200 million to $250 million.
Plans include 330,000 square feet of offices and light industrial space, 600 single-family houses, 700 apartments, and 10,000 to 20,000 square feet of retail. It will have a 60-acre park.
NOT CALIFORNIA DREAMING
ROCHESTER, Wis. — San Antonio's home market value is just one-sixth that of San Jose, Calif., according to the latest analysis by Runzheimer International.
A 2,200-square-foot, eight-room home sells for $125,600 in San Antonio compared to $860,000 in San Jose. According to the Runzheimer report, other Texas locations where shoppers can obtain bargains are Port Arthur and Lubbock, where 2,200-square-foot homes sell for less than $130,000.
San Antonio is one of the few locations where home market values actually decreased during the last six years. According to Runzheimer, housing values dropped nearly 15 percent from 1995 to 2001. Port Arthur housing costs went down more than 14 percent.
With the high purchase prices in San Jose, it is possible that someone buying a home in 1995 doubled their investment by re-selling it six years later. Values there jumped 101 percent during that time.
March 23, 2001
MORTGAGE RATES DOWN SIGNIFICANTLY
McLEAN, Va. — The average rate on a 30-year, fixed-rate mortgage is 6.89 percent this week, with an average 1 point, down from last week's rate of 6.96 percent, according to Freddie Mac's Primary Mortgage Market Survey. A year ago, 30-year, fixed-rate mortgages averaged 8.23 percent. This week’s rate tied the yearly low of 6.89 percent reached during the week of January 12, 2001.
The average 15-year, fixed-rate mortgage is 6.44 percent, with an average 1 point, down from 6.54 percent last week. A year ago, 15-year, fixed-rate mortgages averaged 7.84 percent. This is the lowest the 15-year, fixed-rate mortgage has been since the week ending February 12, 1999.
"The Federal Reserve’s cut in interest rates and a continued concern over weakness in the overall economy contributed to another drop in mortgage rates this week," said Frank Nothaft, deputy chief economist for Freddie Mac. "Declining mortgage rates since the first of the year have helped to support housing activity, and lower rates should continue to fuel the housing market well into the spring buying period."
LENDERS SAY NEW LAWS COULD HURT CONSUMERS
WASHINGTON, D.C. — A study released today by the American Bankers Association finds that new state and local laws intended to curb abusive lending practices could actually hurt low- and moderate-income borrowers.
The proliferation of state and local lending rules threatens to divide the lending market and make it costly, if not impossible, for lenders to offer nationally uniform mortgage loan contracts, said Robert Litan of the Brookings Institution. If lenders are unable to do so, he said, their costs will be higher, and those costs are "certain to be passed on to the consuming public, especially underserved borrowers."
INTEL MAY SELL BUILDING
AUSTIN, Tex. (Austin American-Statesman) — After announcing last week that they plan to halt construction on its downtown office building, Intel Corp. officials now say they do not rule out any options, including selling.
Intel said the slowdown in the computer chip business was responsible for the construction stoppage on the ten-story building at San Antonio and Fourth Streets.
NAREIT SUPPORTS SHORTER DEPRECIABLE LIFE
WASHINGTON, D.C. (PRNewswire) — Support for an effort to shorten the depreciable life of tenant improvements to ten years is being supported by the National Association of Real Estate Investment Trusts (NAREIT).
On Mar. 14, U.S. Representative Clay Show (R-Fla.) and 64 co-sponsors introduced legislation to do just that.
By abbreviating the depreciable life of tenant improvements from 39 to ten years, property owners will be able to adapt more easily to the specific floor-to-ceiling needs of new occupants, said NAREIT President and CEO Steven A. Wechsler.
DALLAS-FW HOPES TO LAND BOEING
DALLAS, Tex. (Dallas Morning News) — After 85 years in Seattle, Boeing is moving. Dallas-Fort Worth, Denver and Chicago are under consideration for the new company headquarters.
Boeing officials say a move will save money, put them near the company’s biggest customers and centralize operations. Some 500 will work in the new headquarters.
One of Boeing’s biggest customers is American Airlines, located in the Metroplex.
HOUSTON HOUSING MARKET MIXED
HOUSTON, Tex. (Houston Chronicle) — Houston new home sales were strong again in February — up 20 percent from last year. Sales of existing homes, however, were down 6.3 percent, according to the Houston Association of Realtors.
At the end of February, there were 26,481 homes for sale in the Houston Multiple Listing Service, 3 percent more than in January.
AUSTIN PLANS AIRPORT EXPANSION
AUSTIN, Tex. — Less than two years after opening, Austin Bergstrom International Airport is down to its final gate for leasing. And with 19 million passengers expected to use the terminal by 2020, the new master plan calls for doubling the facilities.
Passenger traffic last year was up 14 percent to 7.6 million. Air cargo was up 39 percent.
RESTORATION SET FOR DOWNTOWN DALLAS BUILDINGS
DALLAS, Tex. — Renovation of the 1.2 million-square-foot, four-building Mercantile complex in downtown Dallas is slated to begin early next year.
The estimated $85 million project will be undertaken by Spire Realty Group, Inc. When completed, the project will have 100,000 square feet of retail space; a 1,000-space, six-level parking garage and as many as 415 residential lofts. Two of the four buildings will be razed.
AUSTIN HOME SALES DOWN, PRICES UP
AUSTIN, Tex. (Austin American-Statesman) — Sales of existing Austin homes declined 14 percent in February compared to the same month last year, according to the Austin Board of Realtors.
At the same time, the number of homes on the market increased 63 percent and the median price added 11 percent to reach $156,950.
SCHOOL ENROLLMENT EQUALS RECORD
WASHINGTON, D.C. — Forty-nine million students were enrolled in the country’s elementary and high schools in 1999 — equaling the all-time high first set in 1970 when their baby-boom parents were in school.
According to the Commerce Department’s Census Bureau, children of new immigrants contributed to the high enrollment. About two-thirds of students in 1999 had a baby-boomer parent. One in five elementary and high school students had at least one foreign-born parent.
FRISCO RESIDENTIAL DEVELOPMENT PLANNED
FRISCO, Tex. — Hillwood Development has bought 26 acres here to develop The Chase at Stonebriar, a master-planned residential community with 77 luxury townhomes and 56 upscale patio homes.
Groundbreaking is set for June with the first lots available in 2002. The development is on the east side of Legacy Drive between State Hwy. 121 and Stonebriar Dr.
Home prices will range from $225,000 to $400,000. Standard Pacific Homes will build the townhomes while Morrison Homes will build the patio homes.
HILTON TO MANAGE HOUSTON CONVENTION HOTEL
HOUSTON, Tex. (Business Wire) — Hilton Hotels Corp. has announced the signing of a 15-year agreement with the Houston Convention Center Hotel Corp. to operate and manage a new 1,200-room convention hotel downtown.
Located adjacent to the George R. Brown Convention Center, the new hotel is scheduled to break ground this summer and open in late 2003. It will house 82,000 square feet of meeting space, three restaurants, a health club and a swimming pool.
HILLWOOD EYES FORNEY
FORNEY, Tex. (Dallas Morning News) — Hillwood Development plans to build more than 400 new homes in this north Texas town of 5,600.
Groundbreaking for the first 210 lots in Mustang Creek, just north of U.S Hwy. 80, is scheduled for next month. Horizon Homes and Pioneer Homes have bought lots and plan to build homes priced from slightly less than $100,000 to around $150,000.
March 20, 2001
I-69: THE ROAD AHEAD
COLLEGE STATION, Tex. — Traffic congestion on Interstate 35 has been growing since the North American Free Trade Agreement began increasing trade between the United States and Mexico.
Dr. Harold Hunt, an assistant research economist with the Real Estate Center at Texas A&M University, says a proposed interstate highway, Interstate 69 — the so-called NAFTA highway — should provide relief by channeling much of the truck traffic south of Dallas, Austin and San Antonio.
"But relief will not come quickly," Hunt says. "A fully completed I-69 is 20 to 40 years down the road."
From Laredo to Texarkana, the proposed I-69 route in Texas will follow a route similar to the one U.S. 59 now covers. Five possible routes in and around Houston are being evaluated, and the feasibility of having two southern branches to the border cities of McAllen and Harlingen is being explored. A crossover to Shreveport is planned between U.S. 79 and U.S. 84.
TEXAS CITIES RANK AS POPULAR DESTINATIONS
PHOENIX, Ariz. — Four Texas cities ranked in the top 25 most popular moving destinations according to a U-Haul International report released yesterday.
Dallas is the second most common destination nationally, behind Atlanta and ahead of New York.. Last year Dallas ranked fourth. Houston’s ranking declined from third in 1999 to fifth in 2000. Austin became much more popular as a destination, moving from 16th to 11th place. San Antonio is now ranked 22nd; it was 27th.
The ranking reflects destinations for movers traveling more than 50 miles and considers every city in the country regardless of size. The report is based on more than 1.7 million U-Haul transactions during calendar year 2000.
U-Haul also reported the top 50 growth cities based on a percentage of inbound moves versus outbound moves. Austin ranked 11th, Lubbock ranked 29th and El Paso ranked 36th nationally in 2000.
AFFORDABLE MODULAR APARTMENT COMPLEX COMPLETED
HOUSTON, Tex. (Houston Business Journal) — Sunrise Housing, Ltd., an affordable apartment developer, recently completed its first apartment complex, The Concord at Palm Center, at Loop 610 and Griggs Road. Work is almost complete on a second complex, The Concord at Little York on Interstate 45.
The apartments are constructed of prefabricated, steel modules. The complexes offer few amenities, no swimming pools, exercise facilities or club rooms. They boast large units, convenient parking and low noise levels. A two-bedroom apartment rents for about $760 per month.
HOME BUILDERS CONFIDENCE RISES
WASHINGTON, D.C. — Consumer confidence may appear sickly, but home builders’ confidence is healthy. Home builders have a more positive outlook about current home sales and sales for the next six months, the National Association of Home Builders (NAHB) reports.
The NAHB’s Housing Market Index rose for the second consecutive month with a two-point gain to 59.
"Home builders continued to express confidence that low interest rates were helping offset effects of broader economic weakening and deteriorating consumer confidence to keep buyer demand on track," said Bruce Smith, NAHB president.
DOWNTOWN TOWER BREAKS GROUND
HOUSTON, Tex. (Houston Business Journal) — Groundbreaking has been held for a 36-story downtown tower that will have Reliant Resources as its lead tenant.
Houston-based Century Development is developing the 1.4-million-square-foot complex on the block bounded by Main, Lamar, Travis and McKinney. The complex will be owned by Main/Lamar Partnership. About 50,000 square feet will be reserved for retail. A parking garage will adjoin the building.
DOWN WITH THE OLD, UP WITH NEW TOWNHOMES
HOUSTON, Tex. (Houston Business Journal) — Trammell Crow has bought the Memorial Bend Apartments in the Memorial area with plans to tear down the 34-year old property and build 142 rental townhomes.
The new Alexan Memorial project, which will break ground in September, is located at 12677 Memorial Drive near Beltway 8. HLM Architects, Inc. of Dallas is designing the project with a Brownstone theme. The average unit will have about 1,200 square feet.
NAR LIKES MELTING POT VIDEO
COLLEGE STATION, Tex. — Another 250 copies of the Real Estate Center video, "Selling Homes in the Melting Pot: Cross-Cultural Marketing in a Changing America," have been ordered by the National Association of Realtors (NAR). The latest order brings total NAR purchases of the video to 500.
The nation's largest trade association uses the video to increase awareness among Realtors who work with homebuyers from various cultural backgrounds.
March 9, 2001
OOPS! EXISTING HOME SALES UP, NOT DOWN
WASHINGTON, D.C. — On February 26, the National Association of Realtors (NAR) reported sales of existing homes fell 6.6 percent in January, and we reported that information to you. However, NAR officials have revised the figures and now report a 3.8 percent increase in existing-home sales during January. NAR blames the error on a software problem.
"These revised numbers suggest that the trend in existing home sales during the past several months is more in line with the recent strength exhibited in both new home sales and housing starts," said David Lereah, NAR chief economist.
MORTGAGE RATES FALL AGAIN
McLEAN, Va. — The average rate on a 30-year, fixed-rate mortgage is 6.97 percent this week, with an average .9 point, down from last week’s rate of 7.03 percent, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, 30-year, fixed-rate mortgages averaged 8.23 percent.
The average 15-year fixed-rate mortgage is 6.52 percent, with an average 1.0 point, down from 6.58 percent last week. A year ago, 15-year, fixed-rate mortgages averaged 7.81 percent.
"Mortgage rates dropped for a second week amid signs that the slow down in the economy is not over yet and further rate cuts are possible," said Robert Van Order, chief economist for Freddie Mac. "Lower mortgage rates have kept the housing market active and affordable."
MEDICAL CITY EXPANDS
DALLAS, Tex. (Dallas Business Journal) — Medical City Dallas Hospital plans a $200 million expansion and renovation project that will double the number of private rooms and add 82 beds. The expansion will also include the construction of a seven-story bed tower for North Texas Hospital for Children patients, a two-story addition to the emergency department that will add 50 treatment rooms, and a 700,000-square-foot addition to the medical office building.
CONDOS FOR DOWNTOWN TOWER
DALLAS, Tex. — The vacant, 16-story office tower at Akard and Elm streets that originally was home to Dallas Federal Savings and Dresser Industries has been sold to investor and developer Sam Ware. Ware plans to convert the former office space into as many as 80 condos that will sell for between $150 and $180 per square foot.
The renovation will add a fitness center and swimming pool for residents. The metal-and-glass façade that dates to the building’s opening in 1957 will be replaced.
TEXAS-MEXICO TRADE CENTER
IRVING, Tex. (Associated Press) — Gov. Rick Perry announced Thursday that Texas will open a distribution center in late spring to facilitate business between Texan and Mexican firms. The center will be about halfway between Fort Worth and Dallas and will provide information, research, consulting and matchmaking services for businesses.
A late May or early June opening is anticipated for the Center, which eventually could encompass 270,000 square feet.
HOTEL AND RESORT PLANNED
AUSTIN, Tex. (Austin American Statesman) — Destination Hotels & Resorts plans to build a resort with a hotel, conference center and golf course near the Circle C development on 255 acres near the south end of MoPac Boulevard and Texas 45. The development is expected to cost $150 million to $200 million.
The land was purchased from Bradley Development. After years of conflict Bradley came to an agreement with the City of Austin about development restrictions. The hotel will have to comply with a water-quality ordinance that limits the amount of pavement and other forms of impervious cover and provides for treatment of stormwater runoff. Buffers will be required around environmentally sensitive features such as streams and the developer must monitor the golf course’s effect on ground and surface water.
The hotel will have 50 residential villas. And Bradley plans to develop an upscale residential subdivision on 1,300 adjacent acres.
DOUBLETREE HOTEL OPENS IN PLANO
PLANO, Tex. — The Doubletree, the first full-service hotel in Legacy business park, is now open. The 404-room hotel is San Antonio-based developer Drake Leddy’s $54 million project. The hotel is in the heart of the 75-acre Legacy Town Center development. All the artwork in the hotel, including the doors of its restaurant, was created by Texas artists.
CVS MOVING INTO HOUSTON
HOUSTON, Tex. (Houston Business Journal) — CVS Corp., the nation’s second-largest drugstore chain, has hired a Wulfe & Co. broker to search for store sites or acquisition candidates. The company has opened one pharmacy-only store, ProCare, in Houston and plans to open about six more.
NEW TERMINAL IN LAREDO
LAREDO, Tex. (San Antonio Business Journal) — A new multipurpose interchange facility on 11 acres will include offices for Landstar System Inc. agents, cross-docks for transloading and interchange inspection facilities. The opening of the Laredo terminal signals the company’s interest in Mexico.
MORTGAGE BANKER WEBSITE LAUNCHED
DALLAS, Tex. (Dallas Business Journal) — Centex Home Equity has launched a website to give mortgage bankers the power to grade loans for credit. The website (checcorrespondent.com) offers lender access to loan programs, products and an Internet-based credit-grading tool that can grade loans in 30 seconds.
HISTORIC WEST TEXAS HOTEL SELLS
DALLAS, Tex. — A hotel that was once considered the finest inn between El Paso and San Antonio and that is noted for housing some of the cast and crew of the 1950s movie Giant has been sold at auction.
Owners of the Hotel Limpia in Fort Davis paid $185,000 for the 1927 hotel at a public auction in Marfa. They plan to refurbish and reopen the hotel and its restaurant and bar.
APRIL 16 DEADLINE TO RENDER PROPERTY
AUSTIN, Tex. (texasbusiness.com) — April 16 is the deadline for businesses to render (list) property with county appraisal districts. Business owners are required by law to render taxable property owned or managed as of January 1, 2001.
Other property owners may choose to render their property. Rendering allows property owners to record their opinion of their property’s value. The appraisal district will send property owners who render a notice before placing a higher value on their property.
NEW AUSTIN DEVELOPMENT
AUSTIN, Tex. (Austin Business Journal) — Kimball Hill Homes has purchased 48 acres in the Harris Branch area in Northeast Austin from Austin HB Residential Properties, Ltd. It plans to develop 178 single-family home lots on the property. The sale closed on February 28.
LATE PAYMENTS AND FORECLOSURES UP
(Realtor Magazine Online) — Mortgage Bankers Association of America (MBA) reports that late mortgage payments were up for the second quarter in a row. Four percent of prime-credit quality home loans were at least 30 days delinquent for the third quarter of 2000. Foreclosure proceedings began on 0.31 percent of home loans, which was up 5 basis points from the previous quarter.
MBA Chief Economist Douglas Duncan said that slowing income growth, higher unemployment and loan seasoning might continue to influence delinquencies.
The American Bankers Association reported an increase in delinquent home-equity loans. Late payments rose to .71 percent, up nine basis points from the second quarter.
UPSCALE HOUSING BOOM IN SAN ANTONIO
SAN ANTONIO, Tex. — San Antonio is experiencing a boom in houses selling for more than $200,000. At the end of 2000, almost 24 percent of the houses listed for sale in Bexar County were valued at more than $200,000, the San Antonio Board of Realtors reports.
"The greatest number of sales take place in the $70,000 to $130,000 range, but the biggest increase in growth is in the over $200,000 market," said Bob Gardner, Texas’ chief executive officer for SouthTrust Mortgage Corp.
San Antonio has dozens of subdivisions that cater to the well-to-do. While upscale housing is selling well, million-dollar estates are not doing as well here as in Austin, Houston or Dallas. Only five homes in the million-dollar range were sold in San Antonio in 2000.
March 6, 2001
WATER WOES
EL PASO, Tex. (Dallas.News.com) — To help meet the water needs of an ever-growing population, the City of El Paso wants to pump water and pipe it through a 150-mile pipeline from one or more "water ranches" the city has purchased in West Texas.
West Texas ranchers, who use the aquifer to water their cattle, and residents of tourist towns fear that El Paso will suck the region’s aquifers dry. A parched land under normal conditions, the area has experienced drought in four of the last five years. Ten wells in Jeff Davis County have gone dry in the last five or six months. Two wells at Fort Davis Historic Site went dry last summer.
One of the ranches El Paso has purchased is the Antelope Valley Ranch, which lies on the Presidio and Jeff Davis county line near Valentine. Regional water-planning officials submitted to the state last month a plan that included pumping 50,000 acre-feet of water a year out of remote water ranches. At least 15,000 acre-feet per year are planned to come from the aquifer under Antelope Valley; residents fear this is more than is being replenished in a year.
DALLAS FLOODWAY EXTENSION GETS 'GO AHEAD'
DALLAS, Tex. (Dallas Business Journal) — After almost 30 years of litigation, a federal district judge in Houston gave the U.S. Army Corps of Engineers permission to work on the Trinity River and Tributaries Project, which the Sierra Club had been battling.
The Corps is working with the City of Dallas to design the floodway extension, which involves building a chain of wetlands and levees.
HOMEOWNERSHIP BILL SUBMITTED TO SENATE
WASHINGTON, D.C. (REALTORMagazine) — A bill has been resubmitted to the Senate that would offer policemen, firefighters and teachers 1 percent down payments and cancellation of the 1.5 percent FHA insurance premium if they buy and live in the home five years.
The Homeownership Opportunities for Uniformed Services and Educators Act (HOUSE) was submitted last year but did not pass. The National Association of Realtors supports the bill.
CARGO CENTER EXPANDS
HOUSTON, Tex. (Houston Business Journal)—Construction is under way on two buildings totaling 350,000 square feet of warehouse and office space at the International Cargo Center located near Bush Intercontinental Airport. Houston-based J.A. Green Development Corp., which specializes in airport-adjacent industrial buildings, owns and operates the Center.
Green is breaking ground for another project this month at its North Texas commercial development park in Grapevine. This project includes three new buildings totaling 350,000 square feet.
SAN ANTONIO ICE SPORTS CENTER
SAN ANTONIO, Tex. (San Antonio Business Journal) — San Antonio figure skaters and hockey players will soon have a new ice sports and recreational facility. The center will be near the site of the NBA’s Spurs planned basketball training and practice facility on the northern stretch of Loop 1604.
Two developers, Winshire Cos. of Dallas and Barshop & Oles of San Antonio, plan to break ground by mid-summer on the 90,000-square-foot center, which will include two National Hockey League regulation-size rinks. Manhattan Construction Co. has been employed to design and build the ice-sports center.
PRESIDENT’S CHILDHOOD HOME TO BE RESTORED
MIDLAND, Tex. (MyWestTexas.com) — President George W. Bush’s childhood home in Midland is being restored to the way it looked between 1952 and 1955 when the President lived there. The Permian Basin Board of Realtors is sponsoring the project. They are hoping to make the site, located at 1412 W. Ohio Ave., a national monument.
ENERGY CRISIS BROADCAST
WASHINGTON, D.C. — A two-hour live broadcast program, "Resolving the Energy Crisis," will be aired tomorrow (Wednesday, March 7) at 9:30 a.m. Texas viewing locations include Houston, Dallas and Austin.
The interactive satellite broadcast will explore the Bush Administration’s options for responding to the energy crisis. A panel of experts will address the actions of regulators, the legal authority underlying these actions (or lack of action) and consumers’ perceptions. The program will look at the interdependence of gas and electricity in California and its effects on the market.
To access a registration form for the broadcast, visit www.eba-net.org. For any questions about the broadcast, email Mary Landrum at mlandrum@southerngas.org.
AFFORDABLE HOME BUILDER JOINS WEB CONSORTIUM
AUSTIN, Tex. (prnewswire) — Gateway Homes, a regional home builder that focuses on building affordable homes in Texas, has become the 12th member of Builder Homesite, Inc., a national new home technology consortium.
"We know the Internet is changing our market," said Tom Walker, Gateway Homes CEO. "Consumers that contact Gateway after using the web are better prepared and more motivated to purchase a new home than random walk-in traffic. Our participation in the Builder Homesite consortium is right on target with our long-term Internet strategy."
AUSTIN DOUBLES CONVENTION CENTER
AUSTIN, Tex. — A 470,000-square-foot expansion of the Austin Convention Center will allow the city to attract regional conventions beginning in 2002. The $110 million project that will double the Center’s space is underwritten by an increase in the hotel-motel property tax approved by Austin voters. Gilbane Buiding Co. is the construction manager.
"Right now the Texas state association market is a big part of our business," said Robert Hodge, the Center’s manager. "We’d like to move into the regional market and even the small national market for conventions. Even some state associations are too large for our existing building."
BUDA QUADRUPLES SIZE OVERNIGHT
AUSTIN, Tex. — Austin released 5,500 acres from its jurisdiction to Buda’s city limits last week. Land along Interstate 35 may now become valuable to developers who previously overlooked the property because of Austin’s stringent rules, such as its water quality regulations. Most of this land has been used for recreational vehicle and mobile home sales.
AUSTIN GROUP SUPPORTS CAP METRO TAX
AUSTIN, Tex. (Austin Business Journal) — The Real Estate Council of Austin (RECA), a local business group, is supporting the continuation of a 1-cent sales tax collected by Capital Metropolitan Transportation Authority (Cap Metro) to be used for roads and related infrastructure in the region.
A resolution issued by RECA recommends that one-fourth of the revenue be returned to the communities from which it was collected and one-fourth be used for roads and related infrastructure improvements for at least ten years.
FREDDIE MAC INVITES E-MORTGAGE COMMENTS
MCLEAN, VA — A second draft of preliminary specifications for electronic single-family mortgages was posted on Freddie Mac's website today for additional review and comment by the mortgage industry. The new draft is based on comments on a first draft published in November 2000 that were submitted by mortgage industry participants, trade associations and digital signature companies.
The mortgage industry is invited to review the updated specifications, which are now available through Freddie Mac's Single-Family website freddiemac.com. Comments should be sent by April 6, 2001. Freddie Mac plans to use the comments to refine and publish additional drafts for review and comment.
SAVE WATER, SAVE MONEY
EL PASO, Tex. (elpaso.times.com) — To encourage people to save water on their lawns, El Paso Water Utilities is offering a turf-replacement rebate program beginning March 15. Rebates of 50 cents per square foot will be given to residential and commercial customers who replace front- and side-yard turf with xeriscaping, a method of landscaping that conserves water.
Requirements include submitting a plan, replacing at least 100 square feet of landscape and using some water-friendly plants and trees in the design. About $750,000 in rebates will be given on a first-come, first-serve basis.
NAHB: TERMINATE LUMBER AGREEMENT
WASHINGTON, D.C. -- Let the U.S.-Canada Softwood Lumber Agreement (SLA) end with no extension or further quota agreement when it expires at the end of March. That's the message today from the National Association of Home Builders (NAHB).
Bruce Smith, president of the 203,000-member NAHB says the SLA has increased lumber price volatility, restricted imports from Canada and had a negative impact on housing affordability. He called the SLA "a bad deal for U.S. homebuyers and homeowners."
Despite the North American Free Trade Agreement, softwood lumber is not traded freely. It is subject to quotas that place an export fee on Canadian lumber shipments once the total exceeds 14.7 billion board feet in a year. A study by the Cato Institute last July said the SLA adds $800 to $1,300 to the price of a new U.S. home.
FROM ICE HOUSE TO TELECOM HOTEL
SAN ANTONIO, Tex. (San Antonio Business Journal) -- A United Kingdom telecommunications company reportedly will be the first tenant in the former Merchants Ice and Cold Storage Co. at 1305 E. Houston. The former cold storage facility is now a telecom hotel.
Developers Eugene Simor and John Miller announced the ten-year lease for 10,000 square feet of the 133,000-square-foot building. While the building is still referred to as Merchant Ice, "ice" now stands for international communication exchange.
DALLAS RANKED FOURTH IN OFFICE INVESTMENT MARKETS
DALLAS, Tex. (Dallas Business Journal) -- Boston-based Torto Wheaton Research, Inc., ranks Dallas as one of the best U.S. markets for office property investments for 2001.
With a projected return of 21.6 percent, Dallas is ranked fourth best nationally. Torto projects 10 to 20 percent rent growth in the Dallas market this year.
SHAKING IN OUR BOOTS
COLLEGE STATION, Tex. -- Texans like to claim everything is bigger in their state. But there's one category they gladly relinquish to others -- earthquakes. Every time there's an earthquake in the United States, such as the one last week in Seattle, Wash., Texans breathe a sigh of relief that earthquakes are one of the few natural disasters they don't have to worry about. Or, do they?
The fact is Texas does have earthquakes. They don't occur often, aren't very big and usually there aren't many people around to feel them. Most recently, a series of minor earthquakes rattled windows in the Panhandle last August.
Some 120 Texas earthquakes have been recorded since 1847. Most have been in far West Texas or the Panhandle. The August 2000 quakes registered between 2.7 and 3.9 on the Richter scale.
As far as Texans are concerned, the "big one" hit Valentine on Aug. 16, 1931. Registering 6.0 on the Richter scale, the Valentine quake caused little damage for the residents of Jeff Davis County.
The most recent earthquakes to cause property damage occurred in Alpine in April 1995 and south of San Antonio in Atascosa County in April 1993. The former registered 5.8 and the latter 4.2.
Only one person has ever been known to die from a Texas earthquake. Ciudad Juarez was killed when his El Paso home collapsed during an tremor in March 1923.
March 2, 2001
LOWER CONSUMER CONFIDENCE REDUCES MORTGAGE RATES
McLEAN, Va. — The average rate on a 30-year, fixed-rate mortgage is 7.03 percent this week, with an average .9 point, down from last week’s rate of 7.12 percent, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, 30-year, fixed-rate mortgages averaged 8.27
The average 15-year fixed-rate mortgage is 6.58 percent, with an average 1.0 point, down from 6.69 percent last week.
"Mortgage rates fell this week as a result of the Consumer Confidence report, which hit a 4.5-year low," said Frank Nothaft, deputy chief economist for Freddie Mac. "Lower confidence translates into slower consumer spending. Less spending means less growth, and less growth means less inflationary pressure, keeping mortgage rates affordable.
PRESIDENT URGES CONGRESS TO CLEAN UP BROWNFIELDS
WASHINGTON, D.C. — President Bush stressed the importance of cleaning up toxic brownfields at a joint session of Congress Wednesday. Brownfields are properties that have real or perceived environmental contamination.
The National Association of Home Builders (NAHB) praised his remarks as a significant step in the right direction in rebuilding the nation’s urban markets.
Bruce Smith, president of the NAHB said, "Brownfields reform is a key part of NAHB’s smart growth and environmental agenda to allow innovative land-use planning techniques to be used in building higher density and mixed-use development."
Meanwhile, the National Association of Realtors has been lobbying for the U.S. Senate to expedite consideration of S.350, the Brownfields Revitalization and Environmental Restoration Act. This act would provide funds for federal and state programs, reduce the liability of property owners and give federal recognition to the finality of successful state cleanups.
REIT CONFERENCE FORECASTS CONTINUED GAINS
NEW YORK, N.Y. — Speakers at the 2001 REIT Conference held here this week agreed that the real estate boom is not going to end anytime soon.
Most expected continued gains, although probably smaller gains than in the last eight years. Market panelists used words like "caution" and "smart growth" but not "concern" or "recession."
FINDING A BROKER ON THE INTERNET
AUSTIN, Tex .— Brokers and agents have a new way to get acquainted. Capital Real Estate Training Center has a website at agentwanted.net. Agents looking for a broker can send a "mini resume" to multiple brokers located in their geographical area.
BANK ISSUE GENERATES LETTER DELUGE
WASHINGTON, D.C. -- As of Thursday morning, Realtors had sent almost 23,000 letters to the Federal Reserve Board and some 27,000 to members of Congress telling them that banks should not be allowed to enter the real estate brokerage, management and relocation business.
National Association of Realtors President Richard A. Mendenhall said both consumers and real estate professionals will be hurt if large, national banks are allowed to buy up real estate brokerages.
The Federal Reserve and the U.S. Treasury Department issued a joint proposed rule in January on the issue of banks in real estate. They have since moved the cutoff date for comment on the rule from March 2 to May 1.
TEXAS BENEFITS FROM HIGH-COST DIFFERENTIAL
(Economy.com) -- Texas does not appear on the list of states where the cost of doing business is highest. Neither does Texas appear on the list of lowest-cost states. It does rank first, however, in jobs gained because the state's business cost is consistently better than the national average.
According to the seventh annual update of an ongoing study by Economy.com, New Jersey has the highest cost of doing business. Massachusetts and Hawaii follow closely.
South Dakota has the lowest cost for doing business, followed by Wyoming and Nebraska.
Business costs are instrumental in determining long-term regional economic performance as they play a central role in the relocation and expansion decisions of firms. Approximately one-third of the differences between state employment growth over the past decade can be explained by the cost of doing business.
During those ten years, Texas gained nearly 181,000 jobs as a result of the business cost differential. Oklahoma was second, gaining more than 90,000 jobs. California was the big loser, down nearly 349,000 jobs.
OFFICE COMPLEX PLANNED FOR DOWNTOWN ARLINGTON
ARLINGTON, Tex. (Fort Worth Star-Telegram) -- "It's the beginning of a whole new era," said Gene Patrick, president of the Arlington Foundation Town Center, in describing a proposed multimillion dollar office complex for downtown.
At the heart of the proposed development is the 80-year-old building at Center and Division streets once owned by former mayor and now Tarrant County Judge Tom Vandergriff. The new 112,000-square-foot complex will include offices and a high-tech data center. Construction is expected to begin in June or July with the final bill estimated at $24 million to $32 million. The Center could be ready for occupancy in 2002.
WEINGARTEN SELLS HOUSTON SHOPPING CENTER
HOUSTON, Tex. (PRNewswire) -- Bellwood Shopping Center in Houston has been sold by Weingarten Realty Investors to an undisclosed buyer.
Located at Bellaire and Kirkwood in southwest Houston, the 136,000-square-foot center opened in 1972. Houston-based Weingarten is a real estate investment trust with 254 income-producing properties in 14 states.
TRAMMELL CROW REORGANIZES, ANNOUNCES LAYOFFS
DALLAS, Tex. (Business Wire) -- Trammell Crow, one of the nation's largest diversified commercial real estate services companies, this week announced an internal reorganization that will consolidate all property and facility management, brokerage and project management services for corporate and institutional customers under a single leadership infrastructure.
The reorganization will create a national organization focused solely on the company's development and investment activities. The new consolidated services business will have some 7,000 employees and be led by Bill Concannon, previously president and CEO of Trammell Crow Corporate Services.
As part of the reorganization, Trammell Crow will "undertake an aggressive cost-cutting effort focusing on inefficiencies and redundancies." The goal is to increase earnings per share by ten to 15 cents.
A company news release said, "a limited number of jobs will be eliminated through this process. The company expects to conclude job eliminations within the next 60 to 90 days and to implement the remaining cost-cutting initiatives during the remainder of 2001."
eREALTY.COM, AUSTIN BOARD REACH AGREEMENT
AUSTIN, Tex. (Business Wire) -- A settlement has been reached in the year-long dispute over the use of Austin's Multiple Listing Service (MLS) information.
A two-sentence release this week said " the issues in this lawsuit were resolved to the satisfaction of both plaintiff and defendant."
The dispute surfaced last year when eRealty.com began offering registered users access to MLS listings via its website. The Austin Board of Realtors contended that eRealty.com, one of its members, violated the governing rules of the association and federal copyright laws.
MILLION DOLLAR HOMES
PARSIPPANY, N.J (Business Wire) -- Coldwell Banker sold 139 Texas homes last year for more than $1 million. But that doesn't begin to compare with the company's top-dollar sales in some other states.
Sixty-two percent of the firm's $1-million-plus homes -- 5,350 in all -- were in California. The top Texas sale was $10 million, while a Woodside, Calif., estate brought $52.5 million.
Other states with numerous million-dollar-plus sales were Massachusetts (416), Illinois (413), Florida (381) and Connecticut (353).
MIDLAND COUNCIL UNANIMOUSLY APPROVES SPORTS COMPLEX
MIDLAND, Tex. (MyWestTexas.com) — City Council members voted 7–0 Tuesday to execute a contract with M.W. Builders of Temple to construct the Scharbauer Sports Complex. The facility will encompass football-soccer and baseball stadiums.
The $45-million price tag on the complex caused controversy, as it came in at $10 million more than originally expected.
The on-site infrastructure costs of about $40.8 million will be financed with the quarter-cent increase in city’s sales tax approved by voters in November 1999. The more than $5 million off-site infrastructure will be paid for by the city’s water and sewer and street funds.
SECOND APARTMENT COMPLEX APPROVED
ROUND ROCK, Tex. -- Round Rock has approved a second apartment complex for the 328-acre La Frontera master-planned community.
Martin Fein Interests is developing the apartments, expected to break ground in May. The Enclave, the first apartment complex in the community, has leased about 20 percent of its 411 units.
February 27, 2001
HOW INFLATION AFFECTS MARKET CYCLES
COLLEGE STATION, Tex. — Last week, the Consumer Price Index increased 3.7 percent from January 2000, and Robert Van Order, Freddie Mac’s chief economist, explained an 11-basis-point rise in mortgage rates as a result of inflation fears.
Dr. Jack Harris, a research economist with the Real Estate Center at Texas A&M University, explains what inflation might mean to housing markets.
"Initially, as incomes rise, demand for homes goes up and with it prices. The price rise is more than inflation because buyers expect houses to hedge future inflation," Harris says.
"After a while, mortgage interest rates rise as lenders build in inflation expectations. This, combined with higher prices, makes homes less affordable, and eventually demand falls. If inflation rates decline, as they most often do, premiums built into prices deflate and housing prices fall, but not fast enough to prevent sales from falling off.
"In short," Harris says, "an inflation ‘spike’ sets up a market cycle with a hot period and a cold period in market sales."
NEW HOME SALES DOWN 11 PERCENT
WASHINGTON, D.C. -- January sales of new, single-family homes fell nearly 11 percent to a seasonally adjusted annual rate of 921,000 units. This compares to a strong, upwardly revised 1.03 million-unit sales rate in December, the Commerce Department reported today.
EXISTING HOME SALES DIP
WASHINGTON, D.C. — Despite low interest rates, January sales of existing homes dropped 6.6 percent to a seasonally adjusted annual rate of 4.65 million units, the National Association of Realtors (NAR) reports. However, last month’s sales activity was 2.4 percent more than the previous January’s.
NAR President Richard A. Mendenhall said, "For two consecutive months we’ve had big drops in existing home sales — this results from a decline in consumer confidence and the deteriorating economy."
OFFICES WITH A VIEW
AUSTIN, Tex. (Austin Business Journal) — On 20 acres at the northwest corner of Bee Caves Road and Loop 360, Endeavor Real Estate Group, LLC, and JER Parnters of McLean, Virginia, are planning a $55 million redevelopment of land currently used to store heavy equipment and dynamite.
Two office buildings with views of the Arboretum and downtown Austin will be built on the site. The developers intend to retain most of the trees on the site; one building will be demolished.
SMALL TOWNS GET HIGH-SPEED INTERNET ACCESS
SAN ANTONIO, Tex. (MySanAntonio:Express-News) — People who live in and around the small towns of Camp Wood, Rocksprings and Vanderpool soon will be running in the fast lane, even faster than the big metropolitan areas when it comes Internet access.
Asymmetrical Digital Subscriber Line (ADSL), a company that uses exiting phone lines to provide Internet access, is providing DSL services to 4,500 Southwest Texas Telephone Co. customers. ADSL offers downstream data speeds as high as 1.5 million kilobits per second as compared with top speeds of 53.3 kilobits per second that regular dial-up services offer.
LIVE-WORK: A NEW TREND IN HOME DESIGN?
ATLANTA (Houston Chronicle) — Three live-work units, which combine living and working space in one building, were showcased at the National Association of Home Builders convention in Atlanta.
Beazer Homes, the seventh largest builder in America, plans to build units nationwide that have office space on the ground floor and living space above.
"We estimate there are about 20 million people in the United States who operate home-based businesses. So it’s a huge potential market for home builders," said Boyce Thompson, editor-in-chief of Builder magazine.
BIOTECH PARK DEVELOPMENT
HOUSTON, Tex. (Houston Chronicle) — A 64-acre Southeast Texas Bio Technology Park is planned on the south side of the Texas Medical Center that will be home to biotechnology companies developing new medical-related products.
The 15-building project will eventually include two million square feet of space and employ more than 23,000 people. The University of Texas M.D. Anderson Cancer Center and other groups are backing the project, which is expected to encourage more development to the south of Loop 610.
MIDLAND’S CITY COUNCIL TO VOTE ON SPORTS COMPLEX
MIDLAND, Tex. (MyWestTexas.com) — Midland’s City Council will vote today on whether to award a contract and finalize the cost of the controversial Scharbauer Sports Complex.
The original estimated price tag of the stadium was $35 million. Now it is expected to cost more than $45 million, which has caused the public’s enthusiasm to wane.
Earlier estimates included just on-site costs. The city said it will use bond sales and interest from the bonds to pay the on-site costs. Midland voters approved a quarter-cent increase in city sales tax in November 1999 to pay for the bonds.
CONVENIENCE STORE BOOM
ALEXANDRIA, Va. (BusinessWire) — If it seems like there is a convenience store on every corner, you might be correct.
The National Association of Convenience Stores reported that the number of convenience stores nationwide reached almost 120,000, a record, in 2000. The report stated that the majority were owned by single-store operators, and almost 10 percent were franchisees.
Texas had 12,331 convenience stores, the largest number in the country and more than 10 percent of the total.
AGGIES WIN CONSTRUCTION COMPETITIONS
COLLEGE STATION, Tex. — Teams from the Texas A&M University Department of Construction Science took top honors at a graduate student competition in Reno, Nevada, and placed second and third in an undergraduate competition in Dallas.
Master's students Rashmi Menon and Pune Maharashtra of India; Robert Paul of Summit, New Jersey; and Brent Pilgrim of Lindale, Texas, placed first among five competing teams in the first-ever Associated Schools of Construction Professional Construction Management Competition for graduate students.
Three teams of undergraduate Aggie constructors participated in the regional competition hosted annually by the Associated General Contractors Dallas-Fort Worth Chapter.
The Highway Heavy Team, coached by David N. Hudson, won second place. Both the Project Management and Design-Build Teams, coached by Ron L. Workman and Dr. John A. Bryant, respectively, placed third.
HOUSTON’S NEW HOME SALES DROP IN JANUARY
HOUSTON, Tex. (Houston Chronicle) — New home sales in Houston fell 6.8 percent in January compared with the same month last year. But big builders in the area felt good about January anyway, as it was highest monthly sales total since last June, said Pamela Minich, vice president of CDS Research, the firm that conducted the survey. Interest rate cuts have boosted consumer confidence and stimulated sales.
HIGHER INDUSTRIAL VACANCIES
SAN ANTONIO, Tex. (San Antonio Business Journal) — The privatization of Kelly Air Force Base — which added 6.2 million square feet of industrial space — and the addition of 1.3 million square feet of new construction in San Antonio were partly to blame for a slowdown in rental occupancy rates in 2000.
The San Antonio chapter of the Society of Industrial and Office Realtors’ annual report, which covers activity from September 1999 to September 2000, said that the net absorption in the industrial market was a negative 262,400 square feet in the central business district and a negative 141,700 square feet in the suburbs. Absorption measures the change in occupied space.
'RANCH' TO HARNESS WIND
AMARILLO, Tex. (PRNewswire) -- Cielo Wind Power and Xcel Energy's Southwestern Public Service Company announced an 80-megawatt, wind-power installation will be built near White Deer, about 40 miles east of Amarillo.
Wind power will be used to diversify fuel sources Xcel uses to power homes and businesses in their 52,000-square-mile service area. Construction on Estacado Wind Ranch is set to begin in July.
The project will feature 80 wind turbines each capable of generating 1.0 megawatt. The 226-foot-tall turbines will weigh 160 tons each.
February 23, 2001
AUSTIN HOME INVENTORY CLIMBS
AUSTIN, Tex. (austin360.com) — The number of existing homes for sale in the Austin Multiple Listing Service increased 41 percent in January compared with the numbers from one year ago, according to the Austin Board of Realtors.
There were almost 4,000 existing homes for sale in the Austin metropolitan area, including Travis, Williamson, Hays, Bastrop and Burnet Counties.
Matt Ikard, an associate broker with Re/Max Austin Associates, said the housing market is stabilizing and sellers are starting to price their homes more realistically.
INFLATION FEAR PUSHES MORTGAGE RATES HIGHER
McLEAN, Va. — The average rate on a 30-year, fixed-rate mortgage is 7.12 percent this week, with an average .9 point, up from last week’s rate of 7.01 percent, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, 30-year, fixed-rate mortgages averaged 8.31 percent.
The average 15-year, fixed-rate mortgage is 6.69 percent, with an average .8 point, up slightly from 6.61 percent last week.
"Market focus shifted this week from fear of a recession to the threat of inflation," said Robert Van Order, chief economist for Freddie Mac. "Although the inflationary threat is probably temporary, it made the financial markets jittery, leading to higher mortgage rates."
SURVEY CONFIRMS REFINANCING BOOM
NEW YORK, N.Y. (prnewswire) — A recent survey showed that 64 percent of respondents were considering refinancing to lower their mortgage rate and to increase their monthly cash flow.
According to the quarterly survey by MortgageIT, 13 percent plan to convert adjustable-rate mortgages to fixed-rate mortgages. Sixteen percent are planning to get home equity loans.
Although rates are lower than they have been since early 1999, many homeowners are gambling that they will continue to drop. While 36 percent said they planned to refinance within a month, 64 percent said they would wait to see if rates fell further — a sign that the current refinancing boom will continue at least through the spring.
Of those getting home equity loans, one-third plan to use the funds for home improvements, 20 percent plan to use the money to pay off other debt, and 10 percent plan to pursue investment opportunities.
PLANO HAMPTON INN SELLS
PLANO, Tex. (Dallas Business Journal) — Memphis-based RFS Hotel Investors, Inc. has sold a 131-room Hampton Inn in Plano to Premium Hospitality Management, an Oklahoma-based real estate investor, for $5.52 million. Premium Hospitality currently owns ten hotels in Wichita Falls, Sherman and Oklahoma.
NEIMAN MARCUS TO ANCHOR NEW S.A. MALL
SAN ANTONIO, Tex. — Neiman Marcus will fill the final anchor location at The Shops at La Cantera, a mall under construction near Interstate 10 West and Loop 1604.
Construction of the Neiman Marcus store will begin late this year and should be completed in 2004. The other three anchors are Nordstrom, Dillard’s and Foley’s.
HOME SALES BOOST FURNITURE SALES
DALLAS, Tex. — Furniture sales in the Dallas metropolitan area were rated eighth in the country this year because of strong home sales, says Patrick Farrell, merchandise director for home furnishings at Pier 1 Imports, Inc., in Fort Worth.
In Dallas 25,483 new building permits were issued for singe-family homes last year, 2,500 more than in 1999. Existing-home sales rose by 2,600 to 45,800, according to the Real Estate Center.
"When you go out to Plano and the midcities, you just see miles and miles of new homes and apartments," Farrell said. "I think that’s what’s out there — especially in the Dallas area — driving new furniture sales."
WAL-MART INTRODUCES NEIGHBORHOOD GROCERY
HOUSTON, Tex. (Houston Chronicle) — Wal-Mart expects to build ten to 15 stores in Houston based on a new concept: grocery stores half the size of a regular Wal-Mart and one-fourth the size of a SuperCenter.
The experimental Neighborhood Markets will feature a full-line grocery, pharmacy and bank.
A store at Kempwood and Gessner is under construction. Other stores are planned for Highway 6 and Rippling Water, for Champions Forest and Spring Cypress, for Beechnut and Kirkwood and for Grant and Eldridge.
PROPOSED LAW WOULD ALLOW FLAGSHIP SALE
GALVESTON, Tex. (Galveston County Daily News) — Under a bill proposed by State Rep. Patricia Gray, Galveston would be allowed to sell the Flagship Hotel. Current state law forbids the city from selling the property because it is on state land, a beach.
The proposed bill allows the city to sell the hotel for as long as 99 years. Buyers would have the same right to use the state land as the city now has. After 99 years, the land would revert to the city’s ownership.
City leaders are eager to sell the hotel that has maintenance and liability problems.
TEXAS HOME EQUITY LOANS SPARSE
(onerealtorplace.com) — American Banker reports that Texas lenders are reluctant to offer home equity loans because of the fine print.
For 150 years, Texas did not allow home-equity financing. Although the ban was lifted in 1998, bankers remain wary because of a law imposing penalties for minor mistakes in loan documents. Bankers who do this type of lending risk losing principal and interest if any of 25 conditions restricting home-equity lending are violated.
Several borrowers have argued their liens should be invalidated because of these loopholes. Most community bankers are waiting for courts to resolve these cases in their favor or for the state legislature to clarify the language in the law.
COMMENT PERIOD EXTENDED ON BANKS OWNING BROKERAGES
WASHINGTON, D.C. (onerealtorplace.com) — The comment period has been extended on a proposed rule to define real estate brokerages as financial activities, which would allow banks to trade in real estate.
The original deadline was March 2, but it has been pushed back to May 1 to allow the Federal Reserve Board and the U.S. Treasury Department more time to collect input from the public before a decision is made.
The National Association of Realtors (NAR), which is fighting the proposed change, views the extension as a victory. In an NAR-commissioned poll, most householders believe that letting national bank-holding companies own brokerages will lead to poorer service and higher costs to bank customers, breaches of privacy and diminished financial choices for homebuyers.
TUSCANY CENTER FINDS LESSEE
AUSTIN, Tex. (GlobeSt.com) — Three Way Inc. is the first tenant to sign a lease at McShane Corp.’s Tuscany Center at Walnut Creek. Three Way will be moving from its 85,000-square-foot space at Bergstrom Technology Center into 101,000 square feet at Tuscany Center Five.
Tuscany Center Five will eventually have nine buildings. The first phase consists of three buildings that have 50,000 square feet in office-flex structure and 80,000 square feet in warehouse under construction. The office-flex building will be ready to lease in April and the warehouse in June.
UPSCALE SHOPPING CENTER FOR ARLINGTON
FORT WORTH, Tex. — JaGee Properties in Fort Worth is developing a specialty retail center for high-end retailers and restaurants in south Arlington. The 28,000-square-foot center to be built on South Cooper Street is leasing now and is expected to open this fall.
HOUSTONHOMECENTER.COM SIGNS EXCLUSIVE AGREEMENT
HOUSTON, Tex. — HoustonHomeCenter.com signed agreements with Click2Houston.com, abc13.com and KHOU.com, which are respectively NBC, ABC and CBS affiliates, to be the exclusive provider of home listings, data and home-related news. In addition, the company will be the premier real estate partner for AOL in Houston, San Antonio, Dallas-Fort Worth and Austin.
The HoustonHomeCenter’s list of properties for sale can be searched using any of 16 criteria. The company is offering an introductory 1.25-percent rebate on homes bought through its website.
HOSPITAL PURCHASED
McALLEN, Tex. (San Antonio Business Journal) -- Universal Health Services, Inc. (UHS), has bought McAllen Heart Hospital.
Terms for sale of the 60-bed hospital were not disclosed. Closing is expected next month.
February 20, 2001
MORE HOUSTON TELECOM SPACE COMING
HOUSTON, Tex. (bizjournals.com) — Infomart and Sarofim Realty Advisors have purchased 65 acres in the Greenspoint area on I-45 and Beltway 8 for a telecommunications campus that will consist of seven or more facilities. The first building will break ground within 60 days.
This project could add another one million square feet of telecom space to the Houston market. In the past year, developers added ten new telecom hotel projects equivalent to two million square feet in the Houston area. Of that space, more than half is vacant or still under construction.
"We don’t have the funding that was once pouring into the market for technology companies to expand their networks," Lee Jeane of Trammell Crow Co. said. "Once that dropped off, the demand for the space dropped off as well."
CONSTRUCTION BRISK ALONG S.H. 161 CORRIDOR
DALLAS, Tex. (Dallas Business Journal) — State Highway 161, which is scheduled to be completed in less than a year, is becoming popular with developers of office and mixed-use space. When completed, the highway will link with State Highway 190 at I-35E.
Macfarlan Real Estate is building Las Colinas Highlands, a seven-story, 200,000-square-foot speculative project on six acres south of State Highway 114.
Poynter-Scifres is building The Offices@Walnut Hill, an office development on 13.5 acres. The first building, on the corner of Walnut Hill Lane, will be two-story and 120,000 square feet. The second will add 150,000 square feet.
Northgate Development Partners, LP owns 52 acres at the northwest corner of State Highway 161 and Northgate Drive, marketed by Baker Commercial Realty, Inc. A variety of projects, including retail, are expected on the site.
THINK TANK THINKS DALLAS’ RED TAPE IS THICK
DALLAS, Tex. (Dallas Business Journal) — A local, conservative think tank, the National Center for Policy Analysis, compared the amount of governmental red tape that businesses face in Dallas, Atlanta, Boston and Los Angeles. It concluded that Dallas and Texas are generally business-friendly, but there is still enough unnecessary red tape to limit economic growth.
Regarding real estate, the Center said that required permits and approvals for development in Dallas are barriers to new businesses trying to get started. The Center objects to the fees and hassles of acquiring permits for building new structures and acquiring development impact reviews.
Dallas’ economic development department responded that the city has set up a "one-stop shop" that allows developers to get all the permits they need in one spot and a "first-stop shop" that details all the places in city government that need to be contacted when starting a new business. The city also has a "business diversity" program that educates minority-owned companies about how to do business with the city.
ANDRAU AIRPARK DEVELOPMENT
HOUSTON, Tex. (Houston Chronicle) — Near the former site of runways and hangars, an upscale neighborhood is taking shape.
In 1998, Camden Trust, a Houston realty company, purchased the Andrau property, about a mile west of the West Belt for $53 million. Since then, Sunrise Colony Co. purchased about 500 acres of the Andrau property from Camden for about $35 million and is building the Royal Oaks golf course community. The average price of the 260 homes sold so far is $530,000. Thirty-seven of the 45 large estate lots have been sold with sales prices of $450,000 and up.
Trademark, a Fort Worth company, is purchasing another portion of the Andrau tract from Camden and is building the Royal Oaks Village Shopping Center on 32 acres fronting Westheimer Road.
AGGIES WIN DESIGN AWARD AT NAHB SHOW
WASHINGTON, D.C .— Two Texas A&M University students won first place at National Association of Home Builders (NAHB) show in Atlanta for their multifamily seniors housing design. The winners were Thane Eddington and Bhargav Goswami. Two other Texas A&M students, Wayne Baker and Aditya Dafre were runners-up.
The purpose of the competition was to introduce students to the concept of aging in place. "These students will be the designers and home builders of the future and introducing them to the housing needs of an aging population now paves the way," said Deborah Adler, project director of the National Center for Seniors’ Housing Research.
'COOL' HOME AWARD
WASHINGTON, D.C. — Dallas-based Custom Homes Group got the "cool home award" at the NAHB show for all the "hot" technologies it has incorporated into a home in Plano.
Using the Home Director system, the company loaded the home up with the latest digital wiring and components, including the "Intelligent Home" networking systems for Internet, entertainment and communications applications, along with its structured wiring Network Connection Center.
COMPANY REPORTS NO CHANGE IN DELL’S EXPANSION PLANS
FORT WORTH, Tex. — A Dell Computer Corp. official says the company is going forward with its expansion in Fort Worth.
Dell has also signed a lease on a 75,000-square-foot property at Alliance Gateway Park and has 500 acres under option for a large-scale development that comes with a 60-year tax break from the city.
D-FW HOME SALES IMPROVE IN JANUARY
DALLAS, Tex. —January sales of pre-owned homes in the Dallas-Fort Worth area were 6 percent more than in January 2000. This jump comes after a 13 percent decline in home sales in December.
Area home prices increased 3 percent compared with the previous January. This is a smaller percentage increase than in the last few months, when 8-14 percent increases were reported.
The median home price was $121,000, and the average time to sell a pre-owned home remains low at about 60 days.
February 16, 2001
TEXAS HOUSES MORE AFFORDABLE
COLLEGE STATION, Tex. — Easing mortgage interest rates and seasonally lower home prices combined to make Texas houses more affordable in the fourth quarter of 2000, compared with the previous three months. However, houses were less affordable than they were one year ago.
For first-time Texas homebuyers, affordability declined in the past year. The First-time Homebuyer’s Affordability Index (FTHAI) dropped to 1.01, compared to 1.07 a year ago. The index indicates that the median income of a renting Texas household is just sufficient to buy a median-priced starter home, based on financing with a 5 percent down payment.
Dr. Jack Harris, research economist, collects data and calculates the two affordable housing indices for Texas.
MORTGAGE RATES CHANGE LITTLE
McLEAN, Va.— The average rate on a 30-year, fixed-rate mortgage is 7.01 percent this week, not much different from last week’s rate of 6.98 percent, according to Freddie Mac’s Primary Mortgage Market Survey. A year ago, 30-year fixed-rate mortgages averaged 8.38 percent.
The average 15-year fixed-rate mortgage is 6.61 percent, with an average .9 point, almost unchanged from 6.60 percent last week.
"With some signs the economy may not be slowing as much as was previously thought, the financial markets sat back and waited for Greenspan’s remarks to try to get further clarity," said Robert Ban Order, chief economist for Freddie Mac.
$12 MILLION BUDGET SUITES HOTEL
SAN ANTONIO, Tex. —Construction will begin this month on a $12.6 million Budget Suites of America Hotel in the 7800 block of Fredericksburg Road.
The hotel’s developer, Robert T. Bigelow, has built hotels and apartment buildings in Las Vegas, Budget Suites in Arizona and one Budget Suite in the Dallas-Fort Worth area.
MIDLAND PASSES TAX INCREMENT REINVESTMENT ZONE
MIDLAND, Tex. (MyWestTexas.com) — Midland City Council approved the creation of a tax increment reinvestment zone (TIRZ) by a 7–0 vote on Tuesday. The TIRZ will create property tax revenues, resulting from increased downtown property value over time. The increased revenues will be used for downtown development.
NEW TENANTS SOUGHT FOR CHASE BUILDING
AUSTIN, Tex. — Property managers for the Chase Building, Sentinel Real Estate Co., are lining up tenants now for the 80,000 square feet that will be vacated when Clark, Thomas & Winters, LLC, move to the new CarrAmerica office tower under construction on W. Sixth St.
The space in the 15-story, 313,000-square-foot Chase Building will have space available in March 2002.
MONTHLY LOAN COMMITMENTS UP 35 PERCENT
WASHINGTON, D.C. — Fannie Mae, the biggest buyer of U.S. mortgages, committed to buy $27.3 billion in loans in January. This is the highest monthly figure since October 1998. Monthly loan commitments rose by 35 percent from the previous month.
Fannie Mae bought $20.6 billion of mortgages from originating lenders and $12.5 billion of its own mortgage-backed securities.
BROWNSFIELDS LEGISLATION BEING CONSIDERED
WASHINGTON, D.C. (MyWestTexas.com) — A bipartisan committee has proposed a new version of brownfields legislation that should limit liability to developers redeveloping sites that have moderate environmental contamination. The idea is to encourage developers to transform these sites into productive real estate.
The bill would insulate developers from future lawsuits under the Superfund toxic waste law and allow the Environmental Protection Agency to reopen a cleanup only when a release or threatened release of contaminants poses an imminent and substantial danger.