Changes in the care delivery model and the spread of healthcare services into rural communities are growing the medical office market. Strong demographic trends continue to draw investors to the segment while uncertainty about the healthcare law remains. Technological advances and a patient-centered approach to care impact design of medical office spaces. Absorption strongest in properties built since 2000 as tenants search for modern amenities. In addition, private equity funds are partnering with investors to build medical office portfolios, according to a recent report by Marcus & Millichap.—Lisa Brown

NEWS AND NOTABLES

DALLAS—The Dallas office of global architecture and design firm Perkins+Will has relocated to the historic Dallas High School building, renovated for commercial use after having sat vacant for 22 years. The firm's local design studio occupies more than 39,500 square feet of the building–the entire third floor and part of the second floor. A grand opening and 30th anniversary celebration are slated for early 2018.

HOUSTON—This year marked another successful year of tree planting for Houston-based Kirksey Architecture. On December 2, the firm gathered to plant 350 trees at Memorial Park. The annual holiday tradition is Kirksey's way of giving back to the community, honoring its clients and continuing a commitment to sustainability. Averaging around 300 to 400 trees planted per year, Kirksey is proud to have planted more than 10,000 trees during the course of 30-plus years. The decision to start planting trees wasn't necessarily planned. Early on, Kirksey gave trees to their clients as a sustainable holiday gift, but quickly learned most people didn't have the means or knowledge to adequately care for the trees—whether it be irrigation methods or knowing the ideal month for planting.

SAN ANTONIO—Having outgrown its initial home, commercial real estate services firm NAI Partners' rapidly growing San Antonio office has moved on up to new-and-improved digs on the top floor of 1020 Northeast Loop 410, just north of Alamo Heights and about three miles east of its former location.

DEAL TRACKER

AUSTIN, TX—AHV Communities announced construction has commenced on two new rental home communities. The two single-family home developments–Legacy and Rivers Edge–will bring a total of 175 new, upscale rental options to one of the country's fastest growing markets.

AUSTIN, TX—Bixby Zane leased 1,067 rentable square feet at 823 Congress. The landlord was represented by Jason Steinberg and Matt Levin with ECR and the tenant was represented by Andres Ventura with Lead Commercial.

AUSTIN, TX—XeoMatrix leased 1,981 rentable square feet of creative office space at Hannig Row, located at 200 E 6th St. The landlord was represented by Jason Steinberg and Matt Levin with ECR and the tenant was represented by Haley Smith with ECR.

AUSTIN, TX—NCS Pearson leased 3,608 rentable square feet at Park Central, located at 12345 N Lamar. The landlord was represented by Jason Steinberg and Matt Levin with ECR, and the tenant was represented by Burke Kennedy, Jerry Frey and Tim Donohue with CBRE.

BROOMFIELD, CO—CBRE recently facilitated the sale of two adjacent apartment communities located at 1030 East 10th Avenue and 1049 East Ninth Ave. Combined, Ten30 and Ten49 include 422 units. As the only pre-1980s construction multifamily communities of that size in the area, the properties presented a unique value-add investment opportunity. The sales price was undisclosed. Dan Woodward, David Potarf, Matt Barnett and Jake Young with CBRE capital markets, Colorado multifamily investment properties, represented the seller, FPA Multifamily of San Francisco. The buyer was Aragon Holdings of Los Angeles.

DENVER—JLL recently secured a five-year lease of class-B warehouse space for Precision Equipment Placement at 14603 East Moncrieff Place in the Moncrieff Business Center. The 44,264-square-foot industrial space is almost twice as large as its previous space–as the business continues to flourish in the Denver's very active industrial market. Moncrieff Business Center is located just off I-70 and I-225 in Northeast Denver.

DENVER—ARA, A Newmark Company (ARA Newmark) announces the $90.6 million sale of Dylan, a 274-unit multi-housing community, completed in 2016 in the fast-emerging River North Art District (RiNo), considered the “next downtown”. Vice chairmen Terrance Hunt and Shane Ozment and executive managing director Chris Cowan represented an undisclosed seller in the sale to IRET Properties, a publicly traded multifamily owner operator with corporate offices in Minneapolis.

FORT WORTH—JLL announced the successful lease renewal negotiation and expansion for First American Payment Systems. The global payment technology provider is expanding its corporate headquarters at Two City Place, located 100 Throckmorton St. JLL managing director Pat McDowell and vice president Jamie Galati negotiated the lease on behalf of the tenant. Spire's Campbell Henry represented the landlord.

HOUSTON—NAI Partners' office project leasing team recently represented C-III Asset Management in two office lease transactions: a 1,802-square-foot space for The Real Estate People, and a 1,442-square-foot deal for EHL Painting and Construction at Gray Falls Centre, located at 2470 Gray Falls Dr. NAI Partners' Zach Leger and Jacob Aldridge represented landlord, C-III Asset Management, during both negotiations.

HOUSTON—JLL announced 1401 Enclave Parkway, a six-story 209,000-square-foot office building in Houston's Energy Corridor, will undergo a five-month renovation that will add a conference center and fitness facility to the building's existing repertoire of amenities. The project is scheduled to begin this month.

IRVING, TX—Venture Commercial Real Estate announced that its investment sales team has completed the sale of a single-tenant net-leased Slim Chickens restaurant. John Zikos, Jonathan Cooper and Don Miller of the Venture Investment Sales group represented the seller, Slim Street NADG Irving LP. Ian Russell with Ian Russell Company represented the buyer, Irving Diamond Property LLC.

MONUMENT, CO—PGIM Real Estate Finance has provided a $48.1 million acquisition loan for Vistas at Jackson Creek. PGIM Real Estate Finance is the commercial mortgage finance business of PGIM, the $1 trillion global investment management businesses of Prudential Financial Inc. The 35-year HUD 223(f) loan is secured by the class-A apartment community, which is situated on more than 14 acres and is minutes away from Interstate 25, offering convenient access to a wide array of shopping, dining and other local attractions.

ROUND ROCK, TX —Mays Crossing, a 64,084-square foot retail property, has sold. Philip Levy, senior managing director Investments in Marcus & Millichap's Fort Worth office, had the exclusive listing to market the property on behalf of the seller, a bank/financial institution. The buyer, a developer, was secured by Levy. Mays Crossing is located at 1201 South Interstate 35.

ROWLETT, TX—The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single-tenant net-leased Advance Auto Parts located at 5414 Rowlett Rd. for $2.5 million. The new Advance Auto Parts property is located just off of the heavily trafficked signalized intersection of Rowlett Road and Highway 66, two primary thoroughfares in the area.

BUILDING BLOCKS

DENVER—Lone Tree will again see more job creation when National Healthcare Development begins construction of an 80,000-square-foot medical office building in 2018. The company has announced plans for a brand-new class-A medical office building to be built at the entrance to the Sky Ridge Medical Center, an award winning and highly profitable HCA hospital campus in Douglas County that recently completed a successful expansion. Plans call for the three-story medical office building to commence construction in the second quarter of 2018 and the developer expects the project to be completed in the summer of 2019. The project will be anchored by a top-rated orthopedic practice that serves patients throughout Colorado, in addition to other well-established specialists.

Instant Insights /

Middle Market Digest: This Week in the South and Mountain Regions

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