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

Following the recession, many employers relocated to the urban core, capitalizing on reduced downtown office rents while reinforcing the trend toward urbanization. As the economic growth cycle gained momentum and office rents in core locations recovered, suburban office space once again became a more affordable alternative for many companies. Though lower costs catalyzed a shift in where companies located, tightening labor markets have reinforced the value of locating near the substantial suburban labor force featuring 70% of the millennial population, according to a recent report by Marcus & Millichap. Though many millennials favor an urban live-work-play lifestyle, for many young adults, commute time is also a significant consideration. This is especially true in North Dallas, home of many of today's most prestigious companies.—Lisa Brown

NEWS AND NOTABLES

DENVER—Passco Companies LLC announces the addition of Brett Johnson as the firm's new vice president of acquisitions for the West and Midwest. Johnson will be based in the firm's Denver office.

DEAL TRACKER

ALBUQUERQUE—HREC Investment Advisors arranged the sale of the 276-guestroom Sheraton Albuquerque Airport Hotel. The buyer is Terrapin Investments & Management Corp, an owner and manager of business and leisure hotels across North America. The seller is a venture between Waramaug, Interstate Hotels and Resorts, and Värde Partners Inc. Mike Armstrong, principal in the San Diego office, exclusively represented the seller during the transaction.

ARLINGTON, TX—JLL's Capital Markets experts secured acquisition financing for Mark at 2600, a 250-unit multifamily community. LegacyTexas Bank originated the loan for S2 Capital and its partner, Pennybacker Capital. Managing director Mark Brandenburg led the JLL team on the financing.

BOERNE, TX—The Carbon Companies announced a series of three meet-and-greets at which its chief executive officer and other members of the development team will meet directly with Boerne residents to clear up misconceptions about Legacy at Cibolo, the company's planned multifamily and mixed-use project at 17 Herff Rd. The informal events will take place from 6:00 p.m. to 8:00 p.m. at Ye Kendall Inn, 128 West Blanco Rd., on August 30, September 7 and September 12 in Kendalle Hall.

DALLAS—Billingsley Company and Del Frisco's Restaurant Group Inc. announced that Del Frisco's Restaurant Group will be moving its headquarters from Southlake to Cypress Waters, a 1,000-acre development that spans the cities of Dallas, Coppell and Irving. Del Frisco's Restaurant Group will move all 58 of its restaurant support center employees to the building currently occupied by Cheddar's Scratch Kitchen at 2900 Ranch Trail this November.

FRISCO, TX—The Boulder Group has completed the sale of a single-tenant net leased 7-Eleven property located at 4609 Coit Rd. for $5.6 million.

MISSOURI CITY, TX—NAI Partners recently represented tenant F45 Training in a 1,950-square-foot retail lease at Sienna Ridge, located at 4340 Sienna Pkwy. Edward Le with Rubicon Realty represented the landlord, Sienna Silver Ridge LLC. Hannah Kaplan of NAI Partners represented F45 during the negotiations.

PEARLAND, TX—NAI Partners recently represented the landlord SSS Pearland Property LLC in a 3,000-square-foot retail lease for Fire Stone Pizza Bar at Kirby Commons, located at 11609 W. Broadway Blvd. Bo Faber with KW Commercial represented the tenant, Gresa Restaurant Group Inc. Jason Gaines and Shaffer Braun of NAI Partners represented SSS Pearland Property LLC during the negotiation.

ROUND ROCK, TX—Hunt Mortgage Group provided two Freddie Mac affordable multifamily loans to refinance two multifamily properties. The total Hunt Mortgage Group investment was $20.5 million. Both loan facilities have a seven-year loan term, 24-months of interest-only payments and 30-year amortization schedule beginning in year three of the loan. The properties include Red Hills Villas Apartments and Champion's Crossing Apartments.

SUGAR LAND, TX—JLL completed a 37,715-square-foot industrial lease for INOVA Geophysical, a seismic acquisition equipment and systems provider. The Houston-based company relocated its headquarters from 12200 Parc Crest Dr. to 13000 Executive Dr. JLL's David Buescher and Jeff Venghaus negotiated the terms on behalf of the tenant. Ryan Wasaff of the Welcome Group represented the landlord.

TYLER, TX —STRIVE announced the sale of Sherwin-Williams Shopping Center, a 7,242-square-foot two-tenant property. The center is situated along South Broadway Avenue, the major north/south thoroughfare. Jennifer Pierson of STRIVE exclusively represented the local Texas seller who redeveloped the property in the transaction. Pierson also sourced the buyer, a local Texas investor. Additional terms of the sale were not released.

Following the recession, many employers relocated to the urban core, capitalizing on reduced downtown office rents while reinforcing the trend toward urbanization. As the economic growth cycle gained momentum and office rents in core locations recovered, suburban office space once again became a more affordable alternative for many companies. Though lower costs catalyzed a shift in where companies located, tightening labor markets have reinforced the value of locating near the substantial suburban labor force featuring 70% of the millennial population, according to a recent report by Marcus & Millichap. Though many millennials favor an urban live-work-play lifestyle, for many young adults, commute time is also a significant consideration. This is especially true in North Dallas, home of many of today's most prestigious companies.—Lisa Brown

NEWS AND NOTABLES

DENVER—Passco Companies LLC announces the addition of Brett Johnson as the firm's new vice president of acquisitions for the West and Midwest. Johnson will be based in the firm's Denver office.

DEAL TRACKER

ALBUQUERQUE—HREC Investment Advisors arranged the sale of the 276-guestroom Sheraton Albuquerque Airport Hotel. The buyer is Terrapin Investments & Management Corp, an owner and manager of business and leisure hotels across North America. The seller is a venture between Waramaug, Interstate Hotels and Resorts, and Värde Partners Inc. Mike Armstrong, principal in the San Diego office, exclusively represented the seller during the transaction.

ARLINGTON, TX—JLL's Capital Markets experts secured acquisition financing for Mark at 2600, a 250-unit multifamily community. LegacyTexas Bank originated the loan for S2 Capital and its partner, Pennybacker Capital. Managing director Mark Brandenburg led the JLL team on the financing.

BOERNE, TX—The Carbon Companies announced a series of three meet-and-greets at which its chief executive officer and other members of the development team will meet directly with Boerne residents to clear up misconceptions about Legacy at Cibolo, the company's planned multifamily and mixed-use project at 17 Herff Rd. The informal events will take place from 6:00 p.m. to 8:00 p.m. at Ye Kendall Inn, 128 West Blanco Rd., on August 30, September 7 and September 12 in Kendalle Hall.

DALLAS—Billingsley Company and Del Frisco's Restaurant Group Inc. announced that Del Frisco's Restaurant Group will be moving its headquarters from Southlake to Cypress Waters, a 1,000-acre development that spans the cities of Dallas, Coppell and Irving. Del Frisco's Restaurant Group will move all 58 of its restaurant support center employees to the building currently occupied by Cheddar's Scratch Kitchen at 2900 Ranch Trail this November.

FRISCO, TX—The Boulder Group has completed the sale of a single-tenant net leased 7-Eleven property located at 4609 Coit Rd. for $5.6 million.

MISSOURI CITY, TX—NAI Partners recently represented tenant F45 Training in a 1,950-square-foot retail lease at Sienna Ridge, located at 4340 Sienna Pkwy. Edward Le with Rubicon Realty represented the landlord, Sienna Silver Ridge LLC. Hannah Kaplan of NAI Partners represented F45 during the negotiations.

PEARLAND, TX—NAI Partners recently represented the landlord SSS Pearland Property LLC in a 3,000-square-foot retail lease for Fire Stone Pizza Bar at Kirby Commons, located at 11609 W. Broadway Blvd. Bo Faber with KW Commercial represented the tenant, Gresa Restaurant Group Inc. Jason Gaines and Shaffer Braun of NAI Partners represented SSS Pearland Property LLC during the negotiation.

ROUND ROCK, TX—Hunt Mortgage Group provided two Freddie Mac affordable multifamily loans to refinance two multifamily properties. The total Hunt Mortgage Group investment was $20.5 million. Both loan facilities have a seven-year loan term, 24-months of interest-only payments and 30-year amortization schedule beginning in year three of the loan. The properties include Red Hills Villas Apartments and Champion's Crossing Apartments.

SUGAR LAND, TX—JLL completed a 37,715-square-foot industrial lease for INOVA Geophysical, a seismic acquisition equipment and systems provider. The Houston-based company relocated its headquarters from 12200 Parc Crest Dr. to 13000 Executive Dr. JLL's David Buescher and Jeff Venghaus negotiated the terms on behalf of the tenant. Ryan Wasaff of the Welcome Group represented the landlord.

TYLER, TX —STRIVE announced the sale of Sherwin-Williams Shopping Center, a 7,242-square-foot two-tenant property. The center is situated along South Broadway Avenue, the major north/south thoroughfare. Jennifer Pierson of STRIVE exclusively represented the local Texas seller who redeveloped the property in the transaction. Pierson also sourced the buyer, a local Texas investor. Additional terms of the sale were not released.