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

Job openings remain near all-time high. Current open positions sit at 5.7 million, which points to a skills disconnect in the labor market. Labor shortages for skilled workers in construction, engineering and information technology are commonly cited, and contribute to moderating employment growth. Apartment absorption could get a boost as the record number of adult children living at home may finally have the financial strength to move out. Many will likely rent, supporting steady apartment absorption. Demand for office space is also supported by rising recent college graduate hiring. Tight labor conditions, with the college unemployment rate just 2.3%, may spur employers to tap new graduates for office-using employment sectors, which will contribute to further office vacancy declines, according to a recent Marcus & Millichap report.—Lisa Brown

NEWS AND NOTABLES

ADDISON, TX—Construction industry veteran Tayloe Call has joined KWA Construction, a leading general contractor specializing in multifamily developments throughout Texas, as executive vice president. In his new role, Call will use his leadership experience and industry expertise to oversee daily operations and work with president Brian Webster in all of the firm's initiatives.

AUSTIN, TX—General Contractor Hill & Wilkinson's Austin office expects revenue of $41 million in 2017 and has a record number of more than 20 employees. While the average project size is about $9 million, the firm prefers the diversity of working on projects currently ranging from approximately $70,000 for the Austin Humane Society renovation to the $24 million Courtyard Marriott Hotel and Conference Center in Pflugerville, which opened last month.

DEAL TRACKER

AUSTIN, TX—The Mesa Oaks Office Park had been on the market for years as a pre-lease opportunity comprising seven class-A buildings ranging from 15,000 to 27,000 square feet each for a total of 119,755 square feet. With an expiring site development permit looming, ECR introduced an existing client to create an off-market purchase opportunity at a discount. Within feasibility, site work commenced, saving the open permit and, as a result, approximately 40% of the buildable square footage. Currently, the park is 100% leased/sold.

AUSTIN, TX—Olivia Hamlet of The Blackstone Group purchased commercial land located at 12300 Riata Trace Pkwy. from Bryan Scher of IMT Capital. The financing institution on this $536 million deal was Deutsche Bank AG New York Branch, according to Enriched Data.

DALLAS—Carrier Enterprises leased 17,418 square feet of warehouse space at 5535 Redbird Dr. Canon Shoults and John Gorman of Holt Lunsford Commercial represented the landlord, Rialto Capital.

DALLAS—Rowan Properties announces the closing of the 50-unit Nantucket Island Apartments. Rowan Properties represented both the seller and the purchaser who was in a 1031 tax-deferred exchange.

DENVER—JLL's Capital Markets experts have secured $31.8 million in construction financing on behalf of a joint venture between Stockbridge and Wood Partners. The loan will be used for the development of Alta SoBo Station, a 187-unit transit-oriented multifamily community located three miles from downtown Denver in the South Broadway submarket. Chicago-based MB financial Bank NA provided the four-year, floating-rate loan.

EL PASO, TX—CBRE announces G-Global leased 20,000 square feet. The tenant, headquartered in Tijuana Baja California, Mexico, will occupy space at 9600 Joe Rodriguez. Arturo De la Mora of CBRE's El Paso office represented the tenant. Andrés Sandoval of CBRE's El Paso office represented the landlord, IDI Gazzaley.

HOUSTON—NAI Partners recently represented Janice Lyn Casey and Mary Elizabeth Ingram in the sale of a 16,250-square-foot industrial warehouse on 0.57 acres of land at 305 Velasco. John Terrazzo and Chris Kugle of NAI Partners represented the sellers during the negotiations, while buyer Make Holdings LLC was represented by Steven O'Conor of Principal Realty Group.

HOUSTON—Hartree Partners LP expanded and renewed an office lease for a total of 6,531 square feet at Two Allen Center, 1200 Smith St. JLL's Jessica Ochoa, John Pruitt and Bubba Harkins represented the landlord, Brookfield Property Partners, in the transaction. Wyatt McCulloch and Lucian Bukowski of CBRE represented the tenant.

HOUSTON—Mariah Properties LLC sold a 10-acre land parcel and a 46,440-square-foot crane-served manufacturing facility at 1223 Brittmoore Rd. JLL's Kevin Erck and John Talhelm represented the seller in the transaction. Harrison Kane of McCalister Real Estate represented the buyer, Rockspring Capital.

PASADENA, TX—Whatley Properties LP and JGBM LLC have closed on the sale of 2330 Pasadena Blvd., an industrial office/warehouse facility consisting of 41,113 square feet on 2.344 acres. Clay Pritchett of NAI Partners represented the seller, Whatley Properties LP and Robin Webb of Bay Cam Properties represented the buyer, JGBM LLC.

SPRING, TX—Blue Lion Salon Studios signed a new 10,000-square-foot retail lease at Grand Parkway Marketplace, 6603 Spring Stuebner Rd. JLL's Mark Raines and Matt Parsons represented the tenant in the transaction. Doug Schooley represented the landlord, Kimco Realty.

WEBSTER, TX—Blue Lion Salon Studios signed a new 11,436-square-foot retail lease at Baybrook Gateway, 1001 Bay Area Blvd. JLL's Mark Raines and Matt Parsons represented the tenant in the transaction. Brody Farris represented the landlord, Weingarten Realty Investors.