State of Your Union; The Deal Sheet
| Yesterday, JLL managing director of government investor servicesJoe Brennan told us the federal stimulus has concluded and we're at the beginning of a new chapter—where we're going to cull waste. | |
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| Here's Joe last night, just home from battling snowdrifts. He saysPresident Obama?s State of the Union was great: ?Education and infrastructure are all lofty goals we believe in.? But it's time toseparate the chatter from what's really happening. There are three views on how to package and cut government spending, and when you get to the bones, each has political problems. | |
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| Obama referenced the government selling acres of federal office space that hasn?t been used in years, but, Joe notes, he hasn?t seen much action. ?His motives are pure, but it takes work,planning, and negotiation.? Pursue government deals in play with vigor, Joe says; we'll have to see what happens with future procurement. He foresees government tenants favoring renewalsover taking new build-to-suit space and, for those that have to move, migration toward existing space, especially in sustainable, transit-oriented downtowns. There will also be a greater focus on space efficiency, hoteling, and work-at-home programs. | |
| PEOPLE IN THE NEWS | |
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| The Real Estate Council?s named its new 2011 board members.Mark Gibson, founding partner of HFF (right) will be chairman, Holt Lunsford Commercial CEO Holt Lunsford will serve as vice chairman. Other TREC executive committee members include Deloitte?s Jim Berry, Crow Holdings? Kevin Bryant, Butler Burgher Group's Diane Butler, Henry S. Miller?s Melissa Hodges, Jackson Walker?s Willie Hornberger, Munsch Hardt Kopf & Harr?s Michael Krywucki, HFF?s Elizabeth Malone, Ernst & Young?s Melinda Lawrence, TREC?s Linda McMahon, Archon?s Will Mundinger II, Crow Holdings?s Will Mundinger III, BBVA Compass? John Reichenbach, Republic Title of Texas? MaryBeth Shapiro, and Pillar Commercial's Manny Ybarra. KUDOS For the 14th consecutive year, TDIndustries was named to Fortunemagazine?s ?100 Best Companies to Work? list with a ranking of No. 45. TDIndustries is one of only 13 companies to have made the listevery year since its inception in 1998, earning the firm the distinction of being a Fortune ?All Star.? | |
LEASING HD Supply Facilities Maintenance extended and expanded its lease to almost 458k SF of industrial space at 550 Lakeside Pkwy in Flower Mound from CS Lakeside 20. CBRE's Steve Berger repped the tenant. Seefried Properties' Bob Rice negotiated for the landlord. *** North American Coal Corp signed a new 38k SF lease at 5340 Legacy Dr in Plano. Transwestern's Nora Hogan, Robert Deptula, and Chris Hipps represented the tenant. Endeavor Real Estate Group's Jamil Alam represented the landlord. *** Hart's Flooring leased 13k SF of industrial space at 2630 Brenner in Dallas. Structure Commercial's Bob Kent negotiated the transaction. Another Structure Commercial deal for Queen's Beauty Supply's10k SF lease at 3030 N. Josey Lane in Carrollton was negotiated byEric Deuillet. *** Ascension Capital Group renewed its lease at Arbors of Brookhollow at 2201 E. Lamar Blvd in Arlington for almost 29k SF. Transwestern's Fletcher Cordell and Kim Brooks represented the landlord. Jackson & Cooksey's Santee Hathway repped the tenant. *** QBE Holdings signed a new lease at One Panorama Center at 7701 Las Colinas Ridge in Irving for 17k SF. Transwestern's Chris Hippsand Reid Caldwell represented the landlord and The Aldrich Group'sJohn Aldrich represented the tenant. *** Keystone Automotive Industries leased 168k SF of industrial/distribution space at Grand Lakes I in Grand Prairie. Cushman & Wakefield of Texas? Dan Cook and Mark Becker along with C&W Los Angeles? Jake Bobek represented Keystone. Duke Realty's Curt Hefner represented the landlord, Duke Realty Limited Partnership. *** Mohawk Carpet leased 258k SF in Building Four at Lakeside Trade Center in Flower Mound. Mohawk was represented by JLL?s Tom McCarthy. T&L Holding Corp leased 70k SF in Building One and was represented by NAI Robert Lynn?s Tyson Erwin. BFS Servicesleased 70k SF in Building One and was represented by Boykin Partners' Jeff Boykin. NAI Robert Lynn?s Mark Miller and Chad Albert represented the landlord at Lakeside Trade Center. *** At Skyline Business Park in Mesquite, 457k SF was leased to Hayes Retail Services in Building One. CBRE's Jake Marks and John Hendricks represented the landlord. *** Shippers Warehouse leased 472k SF at 3737 Miller Rd in Garland. Logistics Realty's Trip Leon, Al Leon, and Larry Leon represented the tenant. TIG Real Estate Services? Michael Grant and Ryan Wolcott repped the landlord. *** Shiny Queen leased almost 12k SF of warehouse space at 151 Regal Row. Capstone Commercial's Larry Robbins and Eric Morgan arranged the lease with Jon Sorg of ProLogis. *** Hazel's HotShot leased almost 26k SF of industrial space at 1735 W. Crosby Rd in Carrollton. Cushman & Wakefield of Texas? Jean Russo represented the tenant. IPERS Valwest Business Park is the landlord. *** Dry Force leased 11k SF of industrial space at 501 Trinity Blvd in Grand Prairie. Cushman & Wakefield of Texas? Peter Richardsonand Drew Richardson repped the tenant. PPG Real Estate Partners is the landlord. *** Hillwood is pursuing LEED Gold certification for commercial interiors on Building Five at Lakeside Trade Center, the new home to Nature?s Best. This 308k SF deal was consummated at Lakeside Trade Center, Building Five in Flower Mound. Nature?s Best was repped byMark Collins and Kirk Collins of Cushman & Wakefield. *** Uline, needing 600k SF in Coppell, saw three existing tenants (Mohawk, T&L Holdings, and BFS) relocate from Tradepoint Business Park to Lakeside Trade Center with 998k SF of leases inked in total. Uline was represented by CBRE's Dave Anderson. Holt Lunsford Commercial's Jim Brice represented the landlord at Tradepoint Business Park. | |
| FINANCING | |
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| Metropolitan Capital Advisors arranged high leverage acquisition financing for a 43k SF Whole Foods in a former Circuit City inSeattle with a $9.6M floating-rate bridge mortgage on behalf of an ownership group controlled by Austin-based Retail Endeavors Group, which has focused on distressed acquisitions in the past 24 months. REG bought the defaulted mortgage on the property and then worked through a complicated bankruptcy resolution with the existing borrower. The 24-month bridge loan, arranged by MCA senior director Sunny Sajnani, enabled REG to pay off existing debt, settle the bankruptcy, and provide funding to retrofit the building for Whole Foods. *** | |
Cohen Financial arranged two loans totaling $10.2M for the refinancing of two industrial properties (for a combined 245k SF and fully leased to Fresenius Medical Care) in the Birmingham, Ala., area and Lebanon, Pa. (pictured). Cohen managing director Joseph Hevey Jr and VP Justin Engler secured a $5M loan for the Alabama property and a $5.2M loan for the Pennsylvania site. Each is a fixed-rate, non-recourse 15-year term loan with 15-year amortization schedules priced at a rate in the low 5% range. The lender is a correspondent life insurance company. The borrower is an Ohio-based preferred developer of Fresenius Medical Care distribution facilities. FOR SALE The DBJ reported that the 24-story fully occupied One Arts Plaza is up for sale. Developed by Lucy Billingsley, the Dallas office of HFF will oversee the sale, according to the article. NEW LISTINGS Structure Commercial has been awarded exclusive listings for the138k SF Kroger-anchored shopping center at 2740 Valwood in Farmers Branch; the 179k SF Hobby Lobby-anchored center at 2540 Old Denton Rd in Carrollton; the 22k SF shopping center at 1800 Baird Farm in Arlington; and 17k SF shopping center at 1630 E. Lamar in Arlington. SALES Komplete Development 202 purchased 220k SF of industrial space at 202-210 N Great Southwest Pkwy in Grand Prairie from FR SW Parkway. CBRE's John Brewer repped the buyer. Lee & Associates?Donnie Rohde represented the seller. NEW FUND N3 Real Estate of Southlake introduced its latest real estate investment and development fund, the $200M Delton Retail Fund, which is expanding N3?s net lease portfolio in the US retail real estate market. The Delton Retail Fund is an international JV between N3, whose principal is A.D.G ?Ton? van Dam of the Netherlands and Toronto-based Canadian Alex Shnaider, co-founder of the Midland Group and is majority shareholder and developer of the Trump International Hotel and Tower, Toronto. The introduction of the Delton Retail Fund combines with $50M of equity being raised by Rainier Capital of Dallas for their JV with N3, Net Lease Retail Partners. Estimates indicate N3 will have the capacity to develop and acquire almost $400M of retail real estate over the next two to three yearswith its current equity commitments from Delton and Rainier. |
