Austin Real Estate News - March 2008 Compilation

Apr 01, 2008

Information originally obtained from RECON.

GEORGETOWN, FORT WORTH AMONG 'BEST PLACES'

The April issue ranks Georgetown behind Bellevue, Wash., and ahead of Buford, Ga.; Marina del Rey, Calif.; Bethesda, Md.; Portland, Ore.; Denver, Colo.; Charlotte, N.C.; Fort Worth; and Franklin, Mass.

Cities were scored on job and population growth, new business startups, health-care facilities and other lifestyle factors.

DELL TO LAY OFF THOUSANDS

The Round Rock computer maker reiterated its intention to cut at least 8,800 jobs – about 10 percent of its workforce worldwide. It has already cut about 3,200 positions in the past three quarters.

Dell will close its Topfer Manufacturing Center by Jan. 1, cutting about 900 of its 17,500 Austin-area positions in the process.

“In addition, the company will take further actions to reduce total product costs across all areas, including design, manufacturing and logistics, materials and operating expenses. Dell expects that the initial benefits from these actions will begin to be realized in the second half of this fiscal year," company officials said.

The company will also decide by the end of the third fiscal quarter whether it should sell its Dell Financial Services unit.

TUSCANY CENTER TALLIES TWO MORE

Tuscany Technology Center 3 will be a five-acre build-to-suit capable of accommodating up to 65,184 sf of office-flex space.

Tuscany Technology Center 4, located at 9100 US 290 E., will have 54,865 sf of office-flex space.

Ground has broken on Center 4, and it is expected to be completed toward the end of the year.

ST. CROIX BUYS BRAKER TRIO

Westmont’s 18-month hold before the sale included renovations, upgrades and significant increases in occupancy for the three buildings.

The 216,522-sf flex complex is 93 percent leased and located at Metric Blvd. and Braker Ln.

Holliday Fenoglio Fowler LP brokered the transaction. Bank of America Corp. provided senior debt and Alex Brown Investment Management LLC supplied the equity.

LENDING STANDARDS TIGHTEN FOR MANY

In recent weeks, mortgage insurers have flagged more than 9,600 ZIP codes in at least 34 states where they will not insure certain types of home loans — those for investment properties or second homes, those with riskier adjustable-rate or interest-only mortgages, or for buyers making down payments of less than 3 percent.

The entire states of California, Florida, Arizona, Michigan, Ohio and Nevada, which have seen the highest foreclosure rates and the worst price declines, are blackballed on some mortgage insurers' lists.

For new homebuyers and those seeking to refinance, this can mean higher down payments and a higher bar for credit scores, among other requirements. The toughest restrictions are in markets where home prices are falling, though regions where property values are rising are not immune.

THREE TENANTS FOR TECH RIDGE

The 200-acre Tech Ridge tract at the southeast corner of I-35 and Parmer Lane is being built in phases. Developer Quentin Corp. is working on the second stage of retail that will bring total shop space to around 200,000 sf.

The three newest tenants are scheduled to open in November.

Future phases will include another 280,000 sf of retail and hotel space plus a 400,000-sf office complex to be called the Pavillion at Tech Ridge.

Durham & Bassett Realty of Austin represented Quentin Corp. on all three leases.

PARTNERSHIP'S COTTAGE TAKEOVER

Harbor Group and Mosaic Residential will invest $1.2 million for interior and exterior upgrades on the property, which has been renamed The Cottages at Wells Branch.

The 93 percent leased complex was built in 1984 on more than seven acres and consists of 167 garden-style apartments. The units average 859 sf.

CapMark arranged the Freddie Mac financing. Mosaic will oversee the renovation and manage the property.

AUSTIN OFFERS MOVIE MAKERS NEW INCENTIVE

Austin City Council voted to waive facility use and rental fees for qualifying film, television and video productions in the area.

According to the ordinance, the city will provide as many as two peace officers for 15 days for filmmakers spending at least $1 million on local goods and services. Commercial, music video or video game crews must spend at least $100,000.

Films and television productions benefitting from the ordinance must credit the City of Austin in each episode.

City officials say film and video media production already contributes more than $35 million annually to the local economy. MovieMaker Magazine has ranked Austin the number one place to make movies.

5,500 HOMES FOR LEANDER, LIBERTY HILL

Rancho Sienna on Parmer Lane in east Leander is 610 acres. Middlebrook, along Hwy. 29 in Liberty Hill, is 400 acres. Santa Rita, also in Liberty Hill, is 1,200 acres.

Construction on the first 167 lots of Rancho Sienna and the first phase of Middlebrook has begun. Buildout is expected to take five years. Plans for Santa Rita call for buildout completion in nine or ten years.

Middlebrook homes will range from the $140,000s to $220,000s. In the other two subdivisions, prices will be from the $200,000s to $400,000s.