Thanks to Steve Brown for the following news. Follow@SteveBrownDMN on twitter.
Tight residential housing inventory continues to be the story this week. As the temperatures thaw into the 70s, perhaps more properties will begin to hit the market.
Mortgage interest rates have dropped to nearly 2-year lows so buyers are chomping at the bit. Who knows how low the rates will stay throughout the year, as the FED must decide whether to keep rates low for the European recession, or to raise them based on job growth and the improving US economy.
The big news for Big D this week is that Boston-based Liberty Mutual Insurance is relocating it’s corporate headquarters to the Plano Legacy complex. Abutting the J.C. Penny corporate headquarters, the development is planned on the west side of the Dallas North Tollway at Headquarters Drive. It would include two office buildings housing more than 4,000 workers.
Everything’s bigger in Texas, including the job growth. As Texas led the nation in job growth in 2014, D-FW led not only all Texas metros, but all US metros, with 136,900 jobs last year. Coming in No. 2 was the New York area, with 129,000 jobs while the Houston area was No. 3, with 120,600 jobs.
Bank of Texas is building its new facility on Live Oak Avenue and Peak, just east of downtown Dallas. Encore Multi-Family will build a 253-unit apartment community next door on Swiss Avenue, and will begin construction in about 6 months, with plans to deliver finished apartments about a year later.
As new corporate campuses are developed in the suburbs, apartment developers are following suit. This week, development began on 621 apartments in the $300 million Legacy West development on the Dallas North Tollway. Karahan Cos. and Columbus Realty Partners also started on the retail and office components of the 34-acre Legacy West Development.
“We are going to build the project all at once,” said developer Fehmi Karahan. “We are going to have about 280,000 square feet of retail and restaurant space and 621 apartment units initially.”
“There will be about 240,000 square feet of offices over the retail space,” Karahan said. “We are hoping to have everything open in October of 2016.”
Speaking of Legacy, Invesco just purchased 1,700 apartments last week north of Legacy Rd and the Shops of Legacy. The apartments are on the east side of the North Dallas Tollway, and were sold by Columbus Realty and GE Asset Management.
While Frisco and Plano grab most of the development headlines, more Irving locations for new office construction are on the radar. In fact, in 2014, Irving had more net office leasing than either West Plano or Frisco.
A Dallas investment group, Aztec Fund, purchased an AT&T office building located west of downtown near I-30 and loop 12.
Legacy Senior Communities acquired almost 10 acres in the Midtown Park development located on Meadow Road, just east of North Central Expressway. The Manderville Lane development site was purchased from Kroenke Holdings.
With Love Field’s increased flight traffic up 40%, a new hotel is planned to accommodate the growth in the now-in-play West Love area. If consummated, a 244-room combination Aloft and Element 8-story hotel would be built at Mockingbird and Forest Park Road in the West Love mixed-use development.
Finally, Dallas – Fort Worth lots for residential development are in demand. While most new homes in Dallas – Fort Worth carry a $300,000 plus price tag, lots for new homes priced under $200,000 are disappearing. In fact, there are only 5,000 lots in that price point available. Only 2% of builder lots developed in 2014 were for homes priced under $200,000.
Our specialty is matching development land with developers, so if you have any land or tear-down properties you would like to buy or sell, we would love to help. Reach me at 214-690-9682.
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