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

Capitalization rates on US commercial real estate remained largely stable in the second half of last year, as prices softened slightly, according to the latest research from global property advisor CBRE Group Inc. Ongoing investment demand, especially from foreign buyers, counteracted the rise in interest rates and cyclical factors. Cap rates in the second half of 2016 either largely stayed the same or increased slightly compared to the first half of the year. The industrial sector remained the most stable sector, benefiting from market expectations that it will have stronger rent growth than other asset classes in 2017, says CBRE.—Lisa Brown

NEWS AND NOTABLES

RICHARDSON, TX—Hill & Wilkinson General Contractors has promoted Matt Shem to vice president division manager of special projects. Shem will oversee all division operations including business development, client relationships, scheduling, budgeting and his team's performance.

DEAL TRACKER

DENVER—John Portman & Associates is pleased to announce the opening of Union Tower West last week. The project is a new $100 million mixed-use development located at 1801 Wewatta St., situated in the Lower Downtown Denver District known as LoDo. This new LEED-Certified building in Denver's Union Station neighborhood features a 180-room Hotel Indigo hotel and 100,000 square feet of class-A office space.

DALLAS—Holliday Fenoglio Fowler LP has closed the sale of 2525 McKinnon, a 111,722-square-foot class-A office building in Dallas' Uptown submarket. HFF marketed the property on behalf of the seller, Talon Private Capital, and procured the buyer, City Office REIT Inc. Completed in 2003, 2525 McKinnon boasts eight stories of office space that is 96% leased to tenants, including The Retail Connection, Aramark Service Inc., Staffelbach, Hunt and Berkeley Research.

AUSTIN, TX—Roscoe Properties Inc. took over management of CityView at SoCo, a luxury mixed-use apartment community in the heart of Austin's popular South Congress district. With one-, two-, and three-bedroom apartments, CityView at SoCo also features a resort-style swimming pool, outdoor cabana area, spacious clubhouse, cyber café and 24-hour fitness center.

HOUSTON—NAI Partners represented A-1 Personnel of Houston Inc. in the lease renewal of 7,222 square feet of office/warehouse space located at 8702 Westpark. A-1 Personnel Of Houston Inc. has been in business since 1992. Chris Caudill of NAI Partners represented the tenant, A-1 Personnel of Houston, Inc. during the lease negotiations, while Ed Bane and Jon Michael of Bridge Commercial represent the landlord, Lightning Propco V LLC.

HOUSTON—NAI Partners represented NPO 1495 LP in the lease renewal of 12,000-square-foot retail warehouse space located at 1499 North Post Oak. Shaffer Braun of NAI Partners represented the landlord, NPO 1495 LP during the lease negotiations, while David Munson of Boyd Commercial represented the tenant, Niche Importing Group LLC.

HOUSTON—NAI Partners represented Houston Eye Associates in leasing approximately 3,000 square feet of medical office space in the recently developed Spring Valley Medical Plaza which is located at 9230 Katy Freeway. Taylor Wright of NAI Partners represented Houston Eye Associates during the lease negotiations, while John Joubert of represented the landlord, i3 Interests.

HOUSTON—Seven Seas Maritime Services Inc. extended a 21,600-square-foot industrial lease at 8207 North Loop East. JLL's Ryan Fuselier and Travis Secor represented the tenant in the transaction. Jesse Parks of KRM Development represented the landlord.

PEARLAND, TX—NAI Partners represented SSS Pearland Property LLC in leasing 2,000 square feet of retail space located at 11609 W. Broadway Blvd., Suite 300. Jason Gaines and Hannah Kaplan of NAI Partners represented the landlord, SSS Pearland Property LLC during the lease negotiations, while Kevin Duc Nguyen, Absolute Realty represented the tenant, Pure Organic Nails.

HOUSTON—NAI Partners represented Subsea Hydraulic Leads in leasing 9,000 square feet of manufacturing space located at 5725 Cunningham Rd. Jake Wilkinson of NAI Partners represented the tenant, Subsea Hydraulic Leads, during the lease negotiations while Jim Autenreith and Chris Ochterbeck Moody Rambin represented the landlord, HRD Interests LLC.

Capitalization rates on US commercial real estate remained largely stable in the second half of last year, as prices softened slightly, according to the latest research from global property advisor CBRE Group Inc. Ongoing investment demand, especially from foreign buyers, counteracted the rise in interest rates and cyclical factors. Cap rates in the second half of 2016 either largely stayed the same or increased slightly compared to the first half of the year. The industrial sector remained the most stable sector, benefiting from market expectations that it will have stronger rent growth than other asset classes in 2017, says CBRE.—Lisa Brown

NEWS AND NOTABLES

RICHARDSON, TX—Hill & Wilkinson General Contractors has promoted Matt Shem to vice president division manager of special projects. Shem will oversee all division operations including business development, client relationships, scheduling, budgeting and his team's performance.

DEAL TRACKER

DENVER—John Portman & Associates is pleased to announce the opening of Union Tower West last week. The project is a new $100 million mixed-use development located at 1801 Wewatta St., situated in the Lower Downtown Denver District known as LoDo. This new LEED-Certified building in Denver's Union Station neighborhood features a 180-room Hotel Indigo hotel and 100,000 square feet of class-A office space.

DALLAS—Holliday Fenoglio Fowler LP has closed the sale of 2525 McKinnon, a 111,722-square-foot class-A office building in Dallas' Uptown submarket. HFF marketed the property on behalf of the seller, Talon Private Capital, and procured the buyer, City Office REIT Inc. Completed in 2003, 2525 McKinnon boasts eight stories of office space that is 96% leased to tenants, including The Retail Connection, Aramark Service Inc., Staffelbach, Hunt and Berkeley Research.

AUSTIN, TX—Roscoe Properties Inc. took over management of CityView at SoCo, a luxury mixed-use apartment community in the heart of Austin's popular South Congress district. With one-, two-, and three-bedroom apartments, CityView at SoCo also features a resort-style swimming pool, outdoor cabana area, spacious clubhouse, cyber café and 24-hour fitness center.

HOUSTON—NAI Partners represented A-1 Personnel of Houston Inc. in the lease renewal of 7,222 square feet of office/warehouse space located at 8702 Westpark. A-1 Personnel Of Houston Inc. has been in business since 1992. Chris Caudill of NAI Partners represented the tenant, A-1 Personnel of Houston, Inc. during the lease negotiations, while Ed Bane and Jon Michael of Bridge Commercial represent the landlord, Lightning Propco V LLC.

HOUSTON—NAI Partners represented NPO 1495 LP in the lease renewal of 12,000-square-foot retail warehouse space located at 1499 North Post Oak. Shaffer Braun of NAI Partners represented the landlord, NPO 1495 LP during the lease negotiations, while David Munson of Boyd Commercial represented the tenant, Niche Importing Group LLC.

HOUSTON—NAI Partners represented Houston Eye Associates in leasing approximately 3,000 square feet of medical office space in the recently developed Spring Valley Medical Plaza which is located at 9230 Katy Freeway. Taylor Wright of NAI Partners represented Houston Eye Associates during the lease negotiations, while John Joubert of represented the landlord, i3 Interests.

HOUSTON—Seven Seas Maritime Services Inc. extended a 21,600-square-foot industrial lease at 8207 North Loop East. JLL's Ryan Fuselier and Travis Secor represented the tenant in the transaction. Jesse Parks of KRM Development represented the landlord.

PEARLAND, TX—NAI Partners represented SSS Pearland Property LLC in leasing 2,000 square feet of retail space located at 11609 W. Broadway Blvd., Suite 300. Jason Gaines and Hannah Kaplan of NAI Partners represented the landlord, SSS Pearland Property LLC during the lease negotiations, while Kevin Duc Nguyen, Absolute Realty represented the tenant, Pure Organic Nails.

HOUSTON—NAI Partners represented Subsea Hydraulic Leads in leasing 9,000 square feet of manufacturing space located at 5725 Cunningham Rd. Jake Wilkinson of NAI Partners represented the tenant, Subsea Hydraulic Leads, during the lease negotiations while Jim Autenreith and Chris Ochterbeck Moody Rambin represented the landlord, HRD Interests LLC.