Money Money Money; The Deal Sheet
| Is money burning a hole through the pockets of commercial mortgage bankers? Not exactly, but we've been out in sunny San Diego with about 2,300 of them at the Mortgage Bankers Association's annual CRE finance and multifamily convention, so we do know what's heating up. | ||
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| The big takeaway: Fundamentals are improving, so assets are becoming more financeable, thus real estate is looking good as a global investment again. Here's MBA 2011 chairman Michael Berman (CEO of CWCapital), KeyBank Real Estate Capital EVPE.J. Burke, Cohen Financial CEO Jack Cohen, Morgan Stanley managing director Timothy Gallagher, Principal Real Estate Investors CEO Patrick Halter, and PNC Real Estate/Midland Loan Services EVP Diana Reid. Tim says during the boom, Morgan Stanley made casino and construction loans, which it shouldn?t have done, and the ?spotlight on us right now is so much brighter than it's ever been? to make sure we do things right. Jack says it'sall about the jobs, pointing out that CRE values and the number of jobs are about the same as 10 years ago, and yet there is more space to fill (thanks to efficiency). | ||
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| We're about halfway through the distressed loan workouts and delevering, Diana says, and the process is slow—asset by asset, borrower by borrower, situation by situation. The good news: The flow into special servicing is now equal to the outflow. As FDIC bank closings pick up, it's part of the sign that we're working our way through the distressed loans. E.J. says there's a perception that there are tons more to come in bad debt, but the top 25 banks? higher-quality loans make up 85% of the market, while the remaining 7,750 small banks that typically did the riskier deals (think construction loans) make up just 15% of the market. Expect higher deal volume this year, but keep an eye out for rising interest rates, Egypt, and, of course, Dodd-Frank details: 100 of the 300 rules and studies filling out that regulatory skeleton deal with lending. | ||
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SALES NAI Robert Lynn's brokers were hoofing it on the sales (no prices were disclosed) including:
*** SIB Invest purchased a 60-unit multifamily complex at 3299 Polk St in Dallas from City National Bank. CB Richard Ellis? Chris Deuillet represented the seller. UNDER CONSTRUCTION | ||
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| The three-building 22k SF McKinney Medical Plaza on Virginia Parkway near the intersection of Ridge Road, developed by PM Realty Group, broke ground and is targeted to open in Feb 2012. *** Hill & Wilkinson started construction on a 1,800-space parking garage at Winstar Casino for the Chickasaw Nation. *** McCarthy Building Cos. started work on new ozone facilities at North Texas Municipal Water District's water treatment plant in Wylie, scheduled to wrap in Jan 2014. The $112M project includes the installation of ozone-generation equipment and construction of two buildings to house all of it. McCarthy will also install liquid-oxygen storage and feed equipment, which will supply oxygen for ozone generation. The project engineer is Black and Veatch. *** A JV of Prescott Realty Group, Northwestern Mutual, and AREA Property Partners started construction on a Class-A mixed-use development on the old Shamburger Lumberyard site at Greenville Ave and SMU Blvd. The project kicks off Phase III of the revitalization of the University Crossing neighborhood east of Central Expy, bringing 417 apartment units and 9,000 SF of retail. The first phase was a garage at 6060 North Central Expy, adjacent to the DART line. Phase II was construction of the Shelby, which opened in Oct '09 and includes 55 residential lofts and 3,500 SF of retail on SMU Blvd. The three phases have a combined, projected taxable value of $60M. | ||
LEASES Blake Kendrick and Seth Koschak of Stream Realty reppedCustom Assembly in its 69k SF renewal and expansion at 8101 Tristar in Irving and Hines REIT in its 83k SF lease to Harland Clarke Corp. *** Caterpillar Logistics Services leased 181k SF of office/warehouse space at 4255 Patriot Dr in Coppell. NAI Robert Lynn's Craig Jonesrepped the tenant, and Cannon Green and Blake Kendrick ofStream Realty represented the landlord. *** Cannon also repped DCT industrial in a 103k SF lease to Blackmon Mooring of Texas. And partnering with Chris Jackson, he repped ING in a 284k SF lease to Dal-Tile Corp. *** Jones Lang LaSalle completed the following leases:
*** Premier Components renewed 10k SF of warehouse space at 3405 Dalworth St in Arlington. Bradford Commercial Real Estate Services SVP Brian Pafford and market director Jason Miller represented the landlord, Tarrant County. *** | ||
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| PM Realty Group VP Kyle Libby repped Cardiology and Interventional Vascular Associates in a lease of 16k SF of medical office at Greenville Medical Tower at 7150 Greenville Ave, adjacent to Presbyterian Hospital. The listing broker was Peloton Commercial Real Estate's Darryl Cothron. *** Syncreon Technology USA extended its lease of 223k SF of industrial at 1000 N 28th Ave in DFW Airport from LIT Industrial Texas. CBRE's Steve Trese and Adam Hammack repped the landlord. NAI Robert Lynn?s Tyson Erwin and Rick Medinisrepresented the tenant. *** Jack in the Box Eastern Division leased 157k SF of industrial space at 4721 Mountain Creek Pkwy in Dallas from TR Mountain Creek Parkway Corp. CBRE's Corbin Crews repped the landlord. Corbin also repped Geodis Wilson USA in its 14k SF industrial lease at SUB OP FUND II LP's 920 Minters Chapel in Grapevine. *** Venture Metals leased 43k SF of industrial space at 1970 Crown Dr in Farmers Branch from Cobalt Industrial REIT II. CBRE's Steve Trese and Adam Hammack represented the landlord, and Lee & Associates? Ken Wesson repped the tenant.
*** Superior Abstract & Title leased 11k SF of office space at 8420 Preston Rd in Plano from Headquarters II LP I. CBRE's Rick Rensiand David Reed represented the landlord, and Transwestern Property Services? Michael Griffin repped the tenant. | ||
PEOPLE IN THE NEWS | ||
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| AIA Dallas has a new Fellow: Beck Architecture principal and director of sustainability Betsy del Monte. The Jury of Fellows met at Institute HQ in late January and selected 104 new ones (Betsy was Dallas' sole inductee this year). She received her pin from AIA first VP Jeff Potter (principal of POTTER, 2011 AIA first VP, and 2012 institute president) at last week's Grassroots conference. She was designated for leadership, education, and advocacy, she tells us. It isn't easy becoming an FAIA; fewer than 2% of all registered architects in the US are elected. *** Andy Dunlap was named VP and managing director of Cencor Solutions. He will market leasing and management services fordistressed retail and office assets in Texas and seek out distressedacquisitions. Prior to joining Cencor, he was VP of portfolio management for 1st Services Solutions, where he closed more than100 CMBS loan assumptions and modifications with a principal balance of more than $2B. *** Madison Title Agency named Brian Irwin director of Texas operations to manage and expand its client roster. Previously, he was VP of national commercial services at Republic Title of Texas. As part of Madison?s regional growth strategy, Brian will launch marketing and management solutions for commercial andresidential settlement/escrow services and title underwriting. NEW BUSINESS LAUNCH Lynn Dowdle, formerly of SRS, launched Dowdle Real Estateduring the snowfest last week. Specializing in land, hotels,restaurants, and investment sales, she says it's a good time to start the company as the market begins to turn and opportunities become abundant again. |
