TEXAS SNAPSHOT, FEBRUARY 2007

Brownsville

Barnard

By all measures, Brownsville has enjoyed a strong continuation of the past few years of growth and economic stability. Consider the following:

— Transportation indicators show that of the nine Rio Grande Valley bridges, Brownsville’s three account for half of all of the truck crossings into Mexico, as well as half of the pedestrian traffic.

— Commercial building permits to date this year are lagging behind last year, which was a banner year. Residential building permits at more than $100 million are just slightly behind last year’s $112 million. But, 2006 monthly residential sales figures far exceed all but one month’s 2005 and 2004 figures.

— The Brownsville bank deposit figures — $2.3 billion for 2006 against 2005’s $1.6 billion — under gird the stability of the city’s growth and stable economy.

One of the most noticeable current trends is the redevelopment of existing structures in addition to the construction of new buildings. For example, the multi-story Boca Chica Tower has been remodeled by Loan Star National Bank for its new headquarters, and office space will become available over time. International Plaza, a three-story office building at Highway 48 and Boca Chica, also has been completely refurbished. Across the intersection, International Bank of Commerce is building a new facility adjacent to its existing building.

Close by on Security Drive, Family Thrift has leased a 38,000-square-foot building that previously was occupied by Drug Emporium after a significant amount of remodeling cost. Within the same immediate area, a new medical facility has emerged from an event center building. Also, the reconstruction of the L.F.D. Furniture Store in Boca Chica Plaza, which currently is underway, has resulted in a new long-term lease at double the current size of its facility.

On Price Road, Price Plaza recently has contracted with an architect to redesign the façade and supervise the construction and landscaping changes. In addition, the Valley Day and Night Clinic, also on Price Road, has completed an extensive facelift; a nearby gymnasium/skating rink/bowling alley has been converted into a school; and a daycare facility has become a dentist’s office. The cost of new construction has escalated due to numerous factors such as more stringent building codes, increasing drainage and landscaping requirements.

Of great significance to the growth of Brownsville is the fact that four new schools are to be built on the west side of town. The new high school, which will be on 80 acres, will be located on Highway 281 (Military Highway) across from River Bend Resort, which is approximately 2 miles west of Alton Gloor Boulevard. Two elementary schools and a middle school will be constructed to serve the new subdivisions east of Alton Gloor Boulevard and west of the Expressway.

At the intersection of Highway 281 and Alton Gloor Boulevard, Valero Gas and Oil has purchased more than 1 acre for a new convenience store. Across that intersection, International Bank of Commerce also has purchased a new site. Gem Estates, a residential development company, has acquired an additional 40 acres this year to add to the existing subdivision located 2 miles west of Alton Gloor. This new activity will draw the attention of investors and users, as well as contractors, to the west side area for a period of at least 3 years while construction is underway.

In 2006, several new retailers opened their doors in the Brownsville market. Mervyns, Dress Barn, T.J. Maxx and PetSmart are located in the Las Tiendas Shopping Center, along with another Target, RadioShack, Payless ShoeSource and Taco Cabana. The newest bank in town, Capital One, will anchor the corner of this new center.

In 2007, Lowe’s Home Improvement Warehouse, Office Depot (at North Towne Plaza across from Sunrise Mall), Kohl’s, Gold’s Gym and Conn’s (at Morrison Crossing) will be positioning their new stores along Expressway 77/83 in Brownsville’s northern corridor. This area will continue to strengthen and be Brownsville’s premier retail location for the foreseeable future.

— Cecilia Barnard is a commercial broker with Coastal Realty in Brownsville.


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