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

This has been a tough week for Houston, to say the least. Our hearts go out to those who lost loved ones and were left homeless during the devastating hurricane and subsequent flooding as the week wore on. We continue to think of those who are still in the danger zone and hope there is some modicum of relief to them this Labor Day weekend. While searches are still ongoing for those who were left behind in homes, property damage assessments are in the very early stages. Owners have indicated that they are hunkered down for a long process, which many estimate will be years in the making. Rebuilding will be a slow process for Houston, but rebuild, it will.—Lisa Brown

NEWS AND NOTABLES

AUSTIN, TX—JLL has added respected industry veteran Russell Young to the tenant representation team. Effective immediately, Young joins the firm as managing director and will serve as leader for the JLL Austin tenant representation team. Young previously served as senior vice president at JLL from August 2009 to February 2014.

DENVER—Marcus & Millichap announced that Charles “Chico” LeClaire of the company's Denver office has been named an executive managing director investments. The executive managing director investments designation is the highest level a Marcus & Millichap investment professional can attain.

DEAL TRACKER

AUSTIN, TX—ARA Newmark announces the sale of 7East, a new 186-unit mid-rise that drew institutional investors, private wealth and fund buyers to the rare opportunity to acquire a luxury, urban-infill community in hip East Austin, one of the country's top tech hubs. Austin-based Vice Chairman Pat Jones represented owners Stonelake Capital Partners, a real estate private equity firm with offices in Austin, Dallas and Houston, and Ardent Residential, an Austin-based multifamily developer. The buyer was GF Properties Group, a wholly owned subsidiary of the Southern Ute Indian Tribe Growth Fund. 7East traded at 94% occupancy for an undisclosed price.

BOULDER, CO—The reimagined Peloton West is coming to market this September and is now hosting private previews for prospective buyers in advance of the public sales launch. Now underway with more than $5 million in renovations to the entire 10-acre property, the transformation of Peloton West is being completed by a partnership between CityView and Blackstone with Cadence Realty LLC leading the sales and marketing. Priced from $450,000 to more than $1 million, Peloton West is comprised of 195 updated studio, one-, two- and three-bedroom condominiums ranging in size from 692 to 1,828 square feet.

BRIGHTON, CO—Newmark Knight Frank announces the development of 76 Commerce Center, a 1.8 million-square-foot class-A industrial park. The 122-acre site in Bromley Industrial Park is the largest speculative project to emerge in this growth corridor and is one of the most significant industrial land sales in the Denver area in the last decade. The development is a joint venture between Hyde Development and Mortenson, which has served Colorado as a leading builder and developer for more than 35 years. 76 Commerce Center will offer tenant companies easy access to the entire Denver metropolitan area and the Rocky Mountain region to more efficiently serve the burgeoning front range population growth. The 76 Commerce Center will be a significant regional asset and will serve the I-76 corridor's burgeoning industrial needs. Once complete, this project will be the largest industrial development in Brighton and will provide a significant impact to Brighton and the Denver metro region. NKF's Tim D'Angelo, Mike Wafer and Mike Wafer, Jr. represented Hyde Development in the land purchase.

FORT COLLINS, CO—ARA, A Newmark Company announces the $47.5 million sale of River Glenn, a 300-unit value-add asset, recently named among the most technologically innovative cities in the nation by the Digital Cities Survey and primed for growth after developing its own transit improvement plan. Vice chairmen Terrance Hunt, Shane Ozment, Doug Andrews and Jeff Hawks represented Ocwen Loan Servicing, LLC, the asset manager for the seller, in the sale to San Francisco-based FPA Multifamily.

GEORGETOWN, TX—Institutional Property Advisors (IPA), a division of Marcus & Millichap, announces the sale of Vantage at Georgetown, a 288-unit multifamily asset.

IRVING, TX—Canon Shoults with Holt Lunsford Commercial renewed and expanded a lease with Raw Materials Corporation of 31,232 square feet in Rialto Capital Management's West Airport Freeway project located at 2727 W Airport Fwy.

PANTEGO, TX—Prodigy Design & Renovation has purchased a vacant office/warehouse in Tarrant County, nearly doubling in size with its decision to become a property owner rather than continue to lease. The just-sold property is an 11,679-square-foot structure on slightly more than 1.5 acres at 2309 Superior Dr. Wayne Burgdorf, associate broker and vice president of Coldwell Banker Commercial Advisors DFW, arranged the direct deal between the buyer of record, 2309 Superior Drive LLC, and the local seller, 2309 Properties LLC.

ROUND ROCK, TX—Stan Johnson Company has completed the sale of La Frontera Plaza, a 97,311-square-foot office building serving as the regional headquarters for Houghton Mifflin Harcourt. Located at 2700 La Frontera Blvd., the property was acquired by New York-based Empire Square Group. Stan Johnson Company director Britton Burdette and senior director Brett Butler represented the developer partnership, RedLeaf Properties LLC and Live Oak Gottesman. The buyer represented itself.

This has been a tough week for Houston, to say the least. Our hearts go out to those who lost loved ones and were left homeless during the devastating hurricane and subsequent flooding as the week wore on. We continue to think of those who are still in the danger zone and hope there is some modicum of relief to them this Labor Day weekend. While searches are still ongoing for those who were left behind in homes, property damage assessments are in the very early stages. Owners have indicated that they are hunkered down for a long process, which many estimate will be years in the making. Rebuilding will be a slow process for Houston, but rebuild, it will.—Lisa Brown

NEWS AND NOTABLES

AUSTIN, TX—JLL has added respected industry veteran Russell Young to the tenant representation team. Effective immediately, Young joins the firm as managing director and will serve as leader for the JLL Austin tenant representation team. Young previously served as senior vice president at JLL from August 2009 to February 2014.

DENVER—Marcus & Millichap announced that Charles “Chico” LeClaire of the company's Denver office has been named an executive managing director investments. The executive managing director investments designation is the highest level a Marcus & Millichap investment professional can attain.

DEAL TRACKER

AUSTIN, TX—ARA Newmark announces the sale of 7East, a new 186-unit mid-rise that drew institutional investors, private wealth and fund buyers to the rare opportunity to acquire a luxury, urban-infill community in hip East Austin, one of the country's top tech hubs. Austin-based Vice Chairman Pat Jones represented owners Stonelake Capital Partners, a real estate private equity firm with offices in Austin, Dallas and Houston, and Ardent Residential, an Austin-based multifamily developer. The buyer was GF Properties Group, a wholly owned subsidiary of the Southern Ute Indian Tribe Growth Fund. 7East traded at 94% occupancy for an undisclosed price.

BOULDER, CO—The reimagined Peloton West is coming to market this September and is now hosting private previews for prospective buyers in advance of the public sales launch. Now underway with more than $5 million in renovations to the entire 10-acre property, the transformation of Peloton West is being completed by a partnership between CityView and Blackstone with Cadence Realty LLC leading the sales and marketing. Priced from $450,000 to more than $1 million, Peloton West is comprised of 195 updated studio, one-, two- and three-bedroom condominiums ranging in size from 692 to 1,828 square feet.

BRIGHTON, CO—Newmark Knight Frank announces the development of 76 Commerce Center, a 1.8 million-square-foot class-A industrial park. The 122-acre site in Bromley Industrial Park is the largest speculative project to emerge in this growth corridor and is one of the most significant industrial land sales in the Denver area in the last decade. The development is a joint venture between Hyde Development and Mortenson, which has served Colorado as a leading builder and developer for more than 35 years. 76 Commerce Center will offer tenant companies easy access to the entire Denver metropolitan area and the Rocky Mountain region to more efficiently serve the burgeoning front range population growth. The 76 Commerce Center will be a significant regional asset and will serve the I-76 corridor's burgeoning industrial needs. Once complete, this project will be the largest industrial development in Brighton and will provide a significant impact to Brighton and the Denver metro region. NKF's Tim D'Angelo, Mike Wafer and Mike Wafer, Jr. represented Hyde Development in the land purchase.

FORT COLLINS, CO—ARA, A Newmark Company announces the $47.5 million sale of River Glenn, a 300-unit value-add asset, recently named among the most technologically innovative cities in the nation by the Digital Cities Survey and primed for growth after developing its own transit improvement plan. Vice chairmen Terrance Hunt, Shane Ozment, Doug Andrews and Jeff Hawks represented Ocwen Loan Servicing, LLC, the asset manager for the seller, in the sale to San Francisco-based FPA Multifamily.

GEORGETOWN, TX—Institutional Property Advisors (IPA), a division of Marcus & Millichap, announces the sale of Vantage at Georgetown, a 288-unit multifamily asset.

IRVING, TX—Canon Shoults with Holt Lunsford Commercial renewed and expanded a lease with Raw Materials Corporation of 31,232 square feet in Rialto Capital Management's West Airport Freeway project located at 2727 W Airport Fwy.

PANTEGO, TX—Prodigy Design & Renovation has purchased a vacant office/warehouse in Tarrant County, nearly doubling in size with its decision to become a property owner rather than continue to lease. The just-sold property is an 11,679-square-foot structure on slightly more than 1.5 acres at 2309 Superior Dr. Wayne Burgdorf, associate broker and vice president of Coldwell Banker Commercial Advisors DFW, arranged the direct deal between the buyer of record, 2309 Superior Drive LLC, and the local seller, 2309 Properties LLC.

ROUND ROCK, TX—Stan Johnson Company has completed the sale of La Frontera Plaza, a 97,311-square-foot office building serving as the regional headquarters for Houghton Mifflin Harcourt. Located at 2700 La Frontera Blvd., the property was acquired by New York-based Empire Square Group. Stan Johnson Company director Britton Burdette and senior director Brett Butler represented the developer partnership, RedLeaf Properties LLC and Live Oak Gottesman. The buyer represented itself.