The Deal Sheet; Cassidy Turley Shockwaves
Brace yourselves for further consolidation. Local leaders tell us that yesterday's TPG-led consortium announcement of the intent to acquire Cassidy Turley (expected to close Dec. 31) is the continuing trend of brokerages pairing up to remain competitive. (It's like how all the superheroes are teaming up in the movies. Hollywood is smarter than you think.)
While an industry titan might emerge in five years, there's also risk that an industry downturn might swamp the deal and there's no guarantee of the capital event or who might eventually acquire the combined entities, says Transwestern principal Robert Deptula (above). Cassidy Turley will operate upon closing under the DTZ name—another upcoming TPG acquisition.) Swearingen SVP Jack Moravcik says merging cultures from different companies is also a challenge. There’s already merged companies from Capstar joining Cassidy Turley and DTZ once being UGL Equis, he says—it all depends on how the individuals work together. “The only assets in a brokerage company are in the office,” Jack says, “and they can walk out of the office, too.”
Cushman & Wakefield DFW market leader Steve Everbach (above) tells us he doesn't see this trend ending any time soon, either. Consolidation of well-branded, high-quality national and regional commercial real estate firms will likely continue by suitors of all types, including private equity firms like TPG, adds Disney Investment Group principal David Disney—it’s very telling that private equity capital is now moving into buying the EBITDA of real estate service companies rather than acquiring just the physical assets themselves. For DFW and Texas, David thinks the merger won't have much of a direct, local impact besides giving the combined Cassidy Turley and DTZ a platform to grow into a more dominant, global services leader like CBRE or JLL.
LEASES
HOYA Vision Care inked 102k SF lease at 755 Regent Blvd in Dallas from LIT-RPC Trade Center IX (a JV of Trammell Crow Co, Clarion Partners, and Rosewood Property Co). The firm will relocate from Lewisville next month. CBRE’s Steve Trese repped the landlord. NAI Robert Lynn’s Mark Miller and Tyson Erwin repped the tenant.
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YouFit Health Clubs signed a 20k SF lease at the southeast corner of MacArthur Boulevard and FM 3040 in Lewisville from Kimco Realty. The Retail Connection’s David Levinson repped the landlord. CBRE’s Michael Meaden and Zach Ballenger repped the tenant.
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SWS Re-Distribution Co inked a 128k SF lease at 1440 Lemay Dr in Carrollton. Lee & Associates’ Adam Graham and Nathan Denton repped the landlord. The tenant was repped by Concord Interest’s Carter Fournier.
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Nerium International expanded to 76k SF at 4006 Belt Line Rd in Addison. Bradford’s Sharon Friedberg and Melanie Hughes repped the landlord, ARI Forum. Cushman & Wakefield’s Robbie Baty and Bill McClung repped the tenant
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Regal Corp renewed 19k SF at 605 Avenue R in Grand Prairie. Bradford’s Michael Spain and Jim Ferris repped the landlord, DCT-TX 2004.
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Cowser Tire & Service renewed 10k SF at 4910 Rondo Dr in Fort Worth. Bradford’s Erik Blais repped the tenant. Mercer Co’s Brent Landfried repped the landlord, Knoph Family Two.
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Meritage Homes Corp inked a 16k SF lease at 8840 Cypress Waters Blvd for its Texas region HQ. The tenant was repped by JLL’s Brad Selner, Andy Leatherman, and Torrey Littlejohn.
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Oslin Nation Co leased 30k SF at 3100 E. Randol Mill in Arlington. NAI Robert Lynn’s Craig Jones repped the tenant and John Brewer repped the landlord.
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Graphic Converting signed a 46k SF lease at 1210 Champion Circle in Carrollton from Prologis Texas III. Colliers International’s Phil Rosenfeld and Matt Thompson repped the tenant. Prologis’ Mitch Pruitt repped the landlord. Phil and Matt also repped the landlord, Regal Business Center, in a 28k SF lease at 4653 Leston Ave in Dallas to GSC Forwarding Co. E Smith Realty Partners’ Brad Struck repped the tenant.
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Signature Systems Group signed a 33k SF lease at Crow Holdings Building A in the Lakeside Business District in Flower Mound to relocate its corporate HQ and regional distribution center from New York City. Crow Holdings is constructing 580k SF across three buildings at the southwest corner of Lakeside Parkway and Gerault Road.
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The Rochon Family Office is moving its global HQ to the almost 10k SF penthouse of the new Frost Tower scheduled to open next spring. The landlord was repped by Harwood International’s Jihane Boury and David Roehm. Cassidy Turley’s Randy Cooper and Charlie Morris, and the Rochon Family Office's Ryan Mack repped the tenant.
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Schilli Distribution Services signed a 72k SF lease at 1213 WN Carrier Pkwy in Grand Prairie from Indcor Properties. Lee & Associates’ Mark Graybill and Scott Giordano repped the landlord. Jackson & Cooksey repped the tenant.
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HH Architects signed a 15k SF lease at 5910 N Central Expwy in Dallas from Cpus Premier Place. CBRE’s Josh White, Chelby Sanders, and Clay Vaughn repped the tenant. CBRE’s Dennis Barnes and Clay Gilbert repped the landlord.
EXECUTIVE MOVES
Anisha Nanu joined the Bright Realty team as commercial brokerage coordinator. She will be responsible for third party leasing of retail space, as well as tenant rep. She will also focus on market analysis of the DFW area for Bright Realty’s current retail portfolio.
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Trammell Hancock joined the Venture Commercial Real Estate. Trammell as an assistant VP. He is representing both landlords and tenants with a focus on urban listings.
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Saadia Sheikh joined E Smith Realty Partners as VP. She'll be responsible for reppng tenants and users of commercial space nationally in all transactions from renewals, expansion, site selection, general consultation and purchases. Prior to joining E Smith Realty Partners, she served as VP at Wingert Real Estate.
KUDOS
The International Downtown Association honored Sundance Square with a Downtown Pinnacle Award for its work and initiatives related to its one-acre outdoor plaza. The project was among 10 entries in the category of downtown leadership and management.
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Gaedeke Group has surpassed 1.6M SF of LEED-designated space in its 3M SF portfolio with Banner Place in North Dallas securing its latest LEED Silver Operations & Management certification from the USGBC. The 280k SF Banner Place is the seventh property in Gaedeke's Class-A office portfolio to achieve LEED certification and the third to attain LEED Silver.
FINANCING
HFF’s John Brownlee arranged financing for The Preserve at Arbor Hills at 7001 W Parker Rd in Plano for Pure Multi-Family REIT to secure the seven-year loan through Northwestern Mutual. Loan proceeds were used to acquire the property.
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Hunt Mortgage Group provided a Fannie Mae loan for the acquisition of The Villas at LeBlanc Park (168 units) in Fort Worth for Villas LeBlanc, a Delaware LLC. The loan is a standard delivery and the loan term is 10 years with amortization based on a 30-year schedule, with two years interest only. The Property will be managed by Aldwin Management. The Hunt Mortgage Group deal team included Vic Clark and Colin Cross.
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LMI Capital’s Brandon Brown arranged $7.7M for the acquisition a 124-unit multifamily property in Arlington for the borrower to obtain a Fannie Mae loan with 80% leverage. The first year of the 10-year loan is interest only followed by 30-year amortization.
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CBRE Capital Markets secured first mortgage financing for the 20-story Chesapeake Plaza Class-A office building in Fort Worth. CBRE worked for the borrower, Hines, to obtain an acquisition loan. BBVA Compass provided the floating rate financing of $58M. CBRE’s Greg Greene and Scott Lewis repped the borrower.
SALES
An Arlington-based LLC purchased the 40k SF Matlock Center at Matlock Road and Debbie Lane in Arlington from a Dallas LLC. Shop Companies’ Tommy Tucker repped the seller. The center was 90% leased at sale time.
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Terra Verde Group, the developer of Windsong Ranch, sold a 46-acre land parcel at the northeast corner of US Hwy 380 and Gee Road to United Commercial Development, who partnered with The Kroenke Group on the project. Plains Capital Bank provided financing. Venture Commercial’s Ken Reimer, Edward Bogel, and David Davidson Jr repped both buyer and seller. The Venture team also repped UCD in the 14-acre sale to a Tier 1 national grocery retailer for a 125k SF store and will assist UCD in securing additional pad users and tenants for the property.
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An undisclosed buyer purchased 58 acres at the intersection of Alsbury and Chandler roads in Burleson. The buyer plans on developing apartments in a TOD and is already in discussions with a developer to form a JV for an assisted living facility with memory care. SVN|TJF Investments’ Todd Franks repped the seller.
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Excalibur Collision purchased an 8,000 SF body shop on the hard corner lot at Peak and Perry avenues. Harvard Cos Real Estate’s Randall Turner and Jonny Bender brokered the deal.
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An undisclosed buyer purchased The View at Lake Cliff Apartments in North Oak Cliff at 808 and 810 Blaylock. The Cantrell Co’s Thomas Hooke brokered the deal.
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World Class Capital purchased a 14k SF building on a 20k SF parcel of land at 1899 McKinney Ave in Dallas. The Retail Connection’s Mitch Traub repped the buyer. Ali Arian with Beckley Morris repped the seller, Pearl Realty Holdings.
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Calvary New Life Fellowship acquired a church on 1.3 acres at 2715 Northridge Dr in Bedford from Sonset Baptist Fellowship. Coldwell Banker Commercial Alliance DFW’s Theron Bryant and Casey Tounget repped the buyer. Century 21 Real Estate’s Brett Evans repped the seller.
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One of USAA Real Estate Co’s strategic investment vehicles acquired a 1.5M SF Class-A bulk distribution warehouse portfolio, which includes the 759k SF Dalport Trade Center in Wilmer. CBRE’s Steve Berger and Steve Koldyke will coordinate the leasing of the vacant building.
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Minerva Partners sold 1.46 acres at 3 Marketplace Dr in Irving. Transwestern’s Mason Bishop and Steve Williamson repped the seller.
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A private investor purchased the 12k SF Dollar General net-leased property at 5400 S Colony Blvd in The Colony. Marcus & Millichap’s Chance Hales repped the buyer.
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Traylor Investments Ozona purchased a 45k SF space at 801 Ozona Ave in White Settlement from Edward C Whiting. Lee & Associates’ Becky Thompson repped the seller. Transwestern repped the buyer.
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Tweden Garland Properties sold the 77-unit Castleglen Townhomes at 1004 Castleglen Dr in Garland to California-based MPG Texas 1. The Cantrell Co’s Sam Pettigrew repped the seller in the direct deal. Sam also repped the seller, Moulin Rouge Apartments (a Canadian investment group) in the direct deal to sell the 141-unit Moulin Rouge Apartments at 1251 Moulin Rouge Dr in Dallas, to Moulin Rouge Apartments LLC of San Diego.
CONSTRUCTION & DEVELOPMENT
StreetLights Residential and Stonelake Capital Partners plan to develop Class-A apartment homes at 1000 Singleton Blvd near the southwest corner of Singleton Boulevard and Sylvan Avenue. The new residential development will be the first phase of Trinity Village, a 25-acre urban residential district to be developed by Stonelake in West Dallas. The first phase of Trinity Village will include approximately 300 apartment homes and is expected to deliver first units in summer 2016.
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Dubai-based development company, Invest Group Overseas, announced plans to develop a 41-acre mixed-use project at the northwest corner of the Dallas North Tollway and the future John Hickman Parkway in Frisco, called The Gate. It will be the company’s first development in Texas. The $700M project will include high-rise condo-style residences, a boutique hotel, Class-A office space, and destination retail and dining. It's anticipated to be around 2.3M SF including 410k SF of office, 420SF of boutique office and restaurants, and 1.2M SF of luxury residential, among other features. No timeline has been released.
