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

As the new tax plan makes its way through the process, real estate investors are finding few major downside challenges, according to Marcus & Millichap. However, the nuances of the new tax environment could hold subtle but significant implications that investors will need to consider. Key findings: Few substantive changes to 1031 tax-deferred exchanges, and business-interest deductibility or depreciation rules are widely considered positive by investors. Changes to carried interest, pass-through income, corporate tax rates and individual tax rates could cause investors to reevaluate business structures and holdings. After-tax yields will become an increasingly compelling attraction of real estate investment. The aggressive depreciation options and reduced taxes on pass-through income will be focal points for investors, says the report.—Lisa Brown

BY THE NUMBERS

HOUSTON—Vacancy remains low with scarce existing space, the outlook for Houston remains positive and number crunchers are keeping an eye on crude and rig count, according to NAI Partners' fourth quarter 2017 industrial report.

SAN ANTONIO—Industrial indicators are tempered, there is economic momentum in the local economy into 2018 and the construction pipeline remains steady, according to NAI Partners' fourth quarter 2017 San Antonio industrial report.

NEWS AND NOTABLES

DALLAS—CBRE's hospitality consulting and advisory services for the South-Central US region is moving its base of operations from Houston to Dallas. The south-central advisory practice will now be based out of CBRE's office located at 2100 McKinney Ave.

HOUSTON—JLL announced the appointment of senior vice president Russell Hodges to lead the firm's office agency leasing brokerage team in Houston. In his new role, Russell will assume responsibility for future growth, recruitment and strategic business development initiatives for the business line.

HOUSTON—Lee & Associates-Houston, a nationwide leader in commercial real estate services, announces the promotion of Chase Cribbs from director to senior director, and Chris Nash from associate to director.

HOUSTON—Crescent hired Scott Rodgers as vice president, development to focus on growing Crescent's multifamily portfolio.

DEAL TRACKER

AUSTIN, TX—Landmark Capital announces the successful closing of a $5.5 million cash-out refinance loan. Loan proceeds will be utilized to pay estate taxes and fund capital expenditures and upgrades to three industrial / flex buildings located in a prime South Congress Ave. location in South Austin.

AUSTIN, TX—CBRE National Retail Partners announces the sale of Market at Parmer, a 122,349-square-foot retail centered anchored by H-E-B, a leading grocer in South and Central Texas. A Chicago-based institutional investor purchased the asset for an undisclosed price. Market at Parmer is strategically located at the corner of MoPac Expressway and Parmer Lane in one of the city's most established, in-fill locations of Austin, surrounded by affluent demographics and a growing population.

AUSTIN, TX—G Surgical, LLC leased 797 rentable square feet of office space at the Crystal Mountain Office Park, located at 9433 Bee Caves Rd.  The landlord was represented by Haley Smith and Patrick Ley with ECR.

CARROLLTON, TX—Matthew G. Smith, vice president of ML Realty Partners, is pleased to announce the acquisition of two buildings: 1402 Dunn Dr. and 1406 Dunn Dr. are two fully leased industrial buildings totaling 100,586 square feet. The two buildings sit on a 4-acre site, a half-mile just west of Interstate 35E, providing easy access to Dallas/Fort Worth International Airport and the Dallas Central Business District.

DALLAS—On behalf of The Ainbinder Company, CBRE announces an initial slate of tenants for the much-anticipated 180,000-square-foot High Point Crossing retail development at the northwest corner of E. Northwest Highway and Abrams Road. Academy Sports + Outdoors, Marshalls, Burlington and Five Below will anchor the development. Several other national retailers and service users, as well as fast casual restaurants, are in the final stages of negotiation.

DENVER—Mass Equities Inc., a private equity real estate investment firm based in Santa Monica, CA, announced the successful sale of one of the firm's Denver assets: a 13,730-square-foot multi-tenant creative office building located at the corner of Broadway and 2nd Street in Denver's South Broadway submarket. The buyer is the Native American Bank.

FORT WORTH—Institutional Property Advisors, a division of Marcus & Millichap announces the sale of The Ranch at Fossil Creek, a 274-unit multifamily property.

HOUSTON—NAI Partners recently arranged a 12,375-square-foot sublease located at 3900 Claymoore. Darren O'Conor and John Ferruzzo of NAI Partners represented the sublessee, MOC Central LLC and Nathan Wynne of Cushman and Wakefield represented the sublessor, during the negotiations.

HOUSTON—C-III Asset Management has selected NAI Partners' landlord services division as the exclusive leasing and managing agent for Kingwood Place I – IV. Situated on 14 acres at the entrance to Kingwood near I-69 and Kingwood Drive, the 200,000-square-foot suburban office campus offers four two-story office buildings surrounded by a greenbelt and major nature preserve.

HOUSTON—NAI Partners recently arranged the sale of a crane-served manufacturing facility totaling 55,640 square feet on 3.65 acres located at 6460-6450 Langfield Rd. NAI Partners' Clay Pritchett and Joshua Lass-Sughrue represented the seller, JHV LLC, while JLL's Travis Secor and Ryan Fuselier represented the buyer, MC Properties and Investments LLC.

LEWISVILLE, TX—Venture Commercial Real Estate's Investment Sales team completed the sale of an 8,700-square-foot multi-tenant retail center located at 5040 State Highway 121. John Zikos, Jonathan Cooper and Don Miller of Venture's Investment Sales team represented the seller, Dave Carter with NDC Holdings. The buyer, a local family trust, had no broker representation.

OKLAHOMA CITY—HFF announces the sale of the Surgical Hospital of Oklahoma City, a 33,500-square-foot inpatient acute care hospital. The HFF team marketed the property on behalf of the seller, Pro Realty, and procured the buyer, Inland Real Estate Acquisitions Inc., which closed the purchase on behalf of an Inland affiliate. The Surgical Hospital of Oklahoma is located at 100 South East 59th St., within five miles of major demand generators such as downtown Oklahoma City, the Will Rodgers World Airport and Tinker Air Force Base.

THE WOODLANDS, TX—Dave & Buster's, the popular Dallas-based entertainment food and beverage venue, is opening a new location at Metropark Square, located near The Woodlands trade area. The immense entertainment destination is scheduled to open in February 2019. Dave & Buster's will open during the first phase of construction for Metropark Square and will occupy 40,000 square feet of the newly developed 175,000-square-foot mixed-use development.