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Top headlines and trends in D-FW real estate
 
Steve Brown's Real Estate update
08/23/2019
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(Smiley N. Pool/The Dallas Morning News)

THE GRAND OPENING
D-FW homeowners are hatching larger nest eggs
By Steve Brown | Real Estate Editor

Home price appreciation is slowing in North Texas. But that doesn't mean Dallas-Fort Worth residents don't already have a big nest egg built up in their homes.

Nationwide, homeowners averaged a $61,000 profit in their property sales in 2018. That's up from $50,000 in 2017 to a 12-year high, according to a new study by Attom Data Solutions.

The average return on home sales across the country was the highest since before the Great Recession and equaled a 32 percent gain on the property's original purchase price. The profits were even greater in the D-FW area, where the average owner made $78,865 off the sale of their home. That represents a 45-percent gain.

Part of the reason home sellers are getting more cash at the closing table is they are staying put in their houses longer. Homeowners who sold in the fourth quarter of 2018 had been in their house for an average of 8.3 percent - a record long tenure, Attom Data found.

In D-FW, the average home seller had been in the property for 7.6 years.

"While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains," Todd Teta, chief product officer at ATTOM Data Solutions, said in the report. "However, those are the same areas where homeowners are staying put longer."

Attom Data Solutions estimates that more than a quarter of U.S. homeowners are considered "equity rich," where the value of the loan on their property is 50 percent or less than the current appraised value.

In North Texas, the most equity rich homeowners are in about a dozen zip codes, where more than half the properties have mortgages of half or less the current value.

The D-FW neighborhoods with the largest share of equity rich homeowners includes the 75224 zip code in southwest Dallas (62 percent), the 76014 zip code in Arlington (59 percent) and 76106 in Fort Worth (58 percent).

Almost three in 10 U.S. buyers paid cash for their home in 2018. And the percentage of distressed residential property sales was at an 11-year low, according to Attom Data Solutions.

Still, analysts warn that there are signs the housing market is shifting.

"The economy is still going strong and home loan rates remain historically low," Teta said. "But there are potential clouds on the horizon.

"The effects of last year's tax cuts are wearing off as limits on homeowner tax deductions are in place and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019."

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Source: RealPage
CHART OF THE WEEK
For the fourth year in a row, Irving-based apartment builder JPI has been ranked as the busiest developer of rental communities in North Texas.

JPI had more than 5,000 apartments under construction at the start of 2019 — more than twice the number of its closest competitor, according to a ranking by RealPage.

More than 35,000 rental units are being built in North Texas — more than any other U.S. metro area.
(Hillwood)
DEAL OF THE WEEK

Stanley Black & Decker is putting its new regional distribution center in a warehouse building developed by Hillwood Properties in Northlake.

Square footage: 1.2-million-square feet.

Location: The intersection of Interstate 35W and State Highway 114 in the Alliance Northport business park.

Scheduled completion: Next month.

Background: The site is near Fort Worth's Alliance Airport, BNSF Railway's Alliance Intermodal Facility, the FedEx Express Southwest Regional Hub and the UPS and FedEx ground shipping centers.

Developer Hillwood expanded the new speculative warehouse by 20 percent to meet the tenant's larger space requirement.

Stanley Black & Decker has smaller warehouse operations in Farmers Branch and Argyle.
FIVE STORIES

1: Flower Mound has approved construction of the first major office building in the city's Lakeside business district.

2: Deep Ellum's huge Epic development moves closer to opening with new office and retail tenants.

3: Dallas City Hall is poised to restart its land bank program.

4: The institutional investor that backed Plano's $3 billion Legacy West development has upped its stake in the project.

5: A growing inventory of older office space is up for grabs in Plano's Legacy project.
ELSEWHERE

Signaling more change for the rapidly transforming East Riverside Drive area, local developers are seeking to rezone two parcels near Oracle’s campus to allow them to build two projects that could have 1,000 luxury apartments, retail space and possibly commercial uses.

The tracts are currently home to the Mesh apartments, whose monthly rents range from $1,034 for a studio to $1,979 for a three-bedroom unit. The proposed projects are part of a tide of new residential and commercial development that has been sweeping the East Riverside area, and that has led to concerns by some about the area’s ongoing gentrification.

The apartments were built in the 1960s and 1970s, said Diana Zuniga, one of the managing partners of the partnership that owns the properties.

-Austin American Statesman
FEATURED PROPERTY SALES

Albany Road Real Estate Partners purchased the Centerport I, II and III office buildings on Six Flags Drive in Arlington. The three office buildings contain 285,000 square feet and were sold by German investor Uccello Immobilien GMBH. Creighton Stark with Colliers International brokered the sale.

ProPath, a Dallas pathology clinic and medical practice, has sold its 85,000 square-foot headquarters at 1355 RiverBend Drive near Stemmons Freeway. The company has leased back the building for 15 years. Hammes Partners acquired the property and plans a more than $2 million renovation. Kyle Jacobs of Rubicon Representation brokered the transaction.

Cajun Canuck Holdings LLC bought a 6,980 square-foot hangar at Addison Airport from LRC Equipment. Charlie Otte and Justin Courtnall of Rubicon Representation brokered the sale.
FEATURED PROPERTY LEASES

Alliance Communication Cables signed a 37,964-square-foot industrial building lease at 1036 S. Jupiter Road in Garland. David Eseke and Rick Hughes of Cushman & Wakefield negotiated the lease with Exeter Property Group.

Epsilon Data Management subleased 36,040 square feet to Avaya at 6021 Connection Dr. in Irving. Dan Harris, Travis Boothe, Mike Wyatt, Matt Heidelbaugh and Charlie Beck of Cushman & Wakefield negotiated the lease.

OVH US signed a 15,331 square-foot office lease in Riverside Commons Building 3 at 5020 Riverside Dr. in Irving. Johnny Johnson and Trey Smith of Cushman & Wakefield negotiated the lease with John Wolf and Casey Hilbun of Newmark Knight Frank.
ABOUT THIS NEWSLETTER

We've revamped this weekly real estate newsletter and we'd like your feedback. Send comments or questions to Real Estate Editor Steve Brown or Business Editor Paul O'Donnell. We also send out a weekday newsletter with the top business headlines. If you like this newsletter, please share it with a friend and consider subscribing to our other newsletters here.

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