The Week's Dallas Fort Worth Deal Sheet
Attractive financing options are luring wealthy investors to try the real estate market. SHOP Cos founding partner Tommy Tucker tells us some of these new real estate investors are jumping on retail projects his team has recently sold.
Seeking diversified yield, more investors not previously in real estate are turning towards retail, particularly multi-tenant retail (versus compressed yields in single tenant retail), for cash flow and perceived ease of management, Tommy tells us. Financing options create solid leveraged returns for investors, he says. For example, Stone Oak Square, a 16k SF fully occupied shopping center in San Antonio that was originally marketed for sale with a loan assumption in place. That loan was onerous compared to market alternatives, but required a massive penalty to pay off the loan. As the market strengthened (both pricing in favor of the seller and loan terms attractive to the ultimate buyer), the buyer was able to pay in excess of list price to effectively pay the cost of the seller’s loan penalty. That wouldn’t have been possible six to 12 months ago and beyond, Tommy says.
Tommy and colleague Tim Axilrod repped the sellers in the disposal of the four properties (including Stone Oak) totaling 70k SF. Among them: the 34k SF Gaston Place (pictured) at the corner of Gaston and Haskell avenues in Dallas. The fully occupied center is adjacent to the Dallas Theological Seminary and in a rapidly redeveloping area; the fully occupied 10k SF Highlands Plaza II at the corner of FM 407 and FM 4299 in Flower Mound; and the 10k SF Prosperity Plaza (84% occupied) in Littlefield.
SALES
Urbana Varro acquired the full-service 311-room Sheraton Arlington Hotel near AT&T Stadium in Arlington. Hospitality Management Co assumed operations for the property.
***
Provident Realty Advisors and Kroenke Holdings sold a 5.4-acre parcel on the east side of Hwy 75 at the corner of Manderville Lane and Midtown Blvd. Texas Hotel Brokers’ Phil Patterson and Ryan Patterson repped the undisclosed buyer. The seller was repped by John Hickman.
***
Charter Ventures 1 sold 1.58 acres at 137 McPherson in Fort Worth to Saade Brothers Development Corp. Transwestern’s Grant Huff, Jack Huff and Kyle Poulson repped the buyer.
***
Austin International Ventures sold 1000 Singleton Blvd (a 25-acre industrial property) to Stonelake Capital Partners. Biel Partners president John Bielamowicz repped the seller. The buyer was repped by HFF’s Ben Beaird. Stonelake plans to redevelop the property into a mixed-use project including multifamily, single-family homes and commercial.
***
Weyerhaeuser NR Co sold 68.83 acres at 1100 Everman Pkwy in Fort Worth to 2SP Partners. Transwestern’s Jeff Givens, Jack Huff, Kyle Poulson and Tracy Georges repped the buyer.
***
DRH Realty purchased a 60k SF building at 623-625 107th St in Arlington from Johnson Warehouse. Stream’s Matt Dornak and Cannon Green repped the buyer. CBRE’s Michael Chiocca and David Easterling repped the seller.
***
BJS 600 W Pioneer Parkway sold the 213-unit Pioneer Creek apartments at 600 W Pioneer Pkwy in Arlington to Korca Realty Investments. Greysteel’s Boyan Radic, Doug Banerjee, Andrew Mueller and John Marshall Doss repped the seller.
***
CCAL Walnut Creek Private School acquired a 27k SF three-building campus on five acres at 1751 N Walnut Creek Dr in Mansfield from Mansfield Educational Property. Coldwell Banker Commercial Alliance DFW’s Wayne Burgdorf repped the buyer. The Makens Co’s Bill Makens repped the seller.
***
Avalon Medical Park Partners sold two medical office buildings to an undisclosed investment group. Building I is 21k SF at 805 Hill Blvd in Granbury, and Building II is 13k SF at 1200 Crawford Ct in Granbury. Transwestern’s Jim Sager repped the seller.
***
Henry S Miller’s Jonathan Krebbs and Lane Kommer brokered the sale of the 148-unit Willoughby Park Apartments at 8328 Willoughby Blvd in Dallas. Monticello Asset Management purchased the property from Willoughby 8328 and plans to upgrade the property.
***
Campo San Antonio purchased a 15k SF building at 2201 Dottie Lynn Pkwy in Fort Worth. NAI Robert Lynn’s Colt Power repped the seller. KW Commercial’s Moore Matthews repped the buyer.
***
Oakmont Industrial Group sold a 1.3M SF Class-A Dallas industrial portfolio made up of three trophy quality assets near DFW International Airport (two buildings in the DFW Airport submarket and one in the Great Southwest/Arlington submarket). CBRE’s Jack Fraker, Frank Fallon, Josh McArtor, Jonathan Bryan, Heather McClain Venegoni and Ryan Thornton repped the seller.
***
Henry S Miller Brokerage’s Darrell Hurmis and Daniel Harris closed on the sale of the 14k SF Broadway Corners Shopping Center at the northwest corner of I-30 and Broadway Boulevard in Garland to an undisclosed buyer. Henry S Miller Cos purchased Broadway Corners with a syndication of investors in 2005.
LEASES
Encore Payment Systems inked a 74k SF lease at at 3799-3801 Arapaho Rd in Addison from Lighting Propco I. Lee & Associates’ Nathan Denton, Adam Graham, Mark Graybill and Corbin Blount repped the landlord. The tenant was repped by Colliers International’s Michael Carmichael.
***
Stream’s Matt Dornak worked a pair of leases, including repping Cabot in a 40k SF renewal with Professional Packaging at 2602 W Pioneer Pkwy in Grand Prairie. He also repped Alliance Trucking Corp in a 20k SF lease with Greenbriar Holdings at 2224 Commerce Dr in Arlington. The landlord was repped by Proterra Properties’ Chris Bly.
***
The Better Business Bureau of Metropolitan Dallas signed a 12k SF lease in Thanksgiving Tower. Altschuler Co’s Jon Altschuler, Sam Meginnis and Mike Dement repped the landlord, Woods Capital.
***
Easton Bell Sports signed an 11k SF lease in Las Colinas Corporate Center I. Altschuler Co’s Jon Altschuler and Mike Dement repped the landlord. CASE’s Tom Sutherland repped the tenant.
***
Dakota Premium Harwoods signed a new lease for 77k SF at 641 W Mockingbird Ln in Dallas. Stream’s Ryan Wolcott and Seth Korschak repped the tenant. Holt Lunsford’s Canon Shoults repped the owner, Mockingird No 3.
***
Herzog Technologies extended a 22k SF lease with LNR Partners at 8216 Northeast Pkwy in North Richland Hills. Transwestern’s Jeff Givens and Tracy Georges repped the landlord.
***
Lennar Multifamily leased 11k SF at 433 E Las Colinas Blvd in Irving. The tenant was repped by Cassidy Turley’s Dan Harris and Randy Cooper. Transwestern’s Matt Hurlbut repped the landlord, Codina.
***
Techniweld leased 35k SF at 937-939 Avenue N in Grand Prairie. NAI Robert Lynn’s Michael Stanzel repped the landlord. The Kidd Co’s Charles Kidd repped the tenant.
***
HD Innovations leased 76k SF at 2007 Royal Ln in Dallas. NAI Robert Lynn’s Brandon Coutu repped the tenant. Lee & Associates’ Ken Wesson repped the landlord.
FINANCING
Berkadia SVP Andy Hill secured an $11.3M seven-year, floating-rate loan through Berkadia’s Freddie Mac Program for Mosaic Hillstone to acquire The Retreat at River Ranch Apartments. The 248-unit complex at 4850 River Ranch Blvd in Southwest Fort Worth, TX. The property was 94% occupied at closing.
***
Robert Faust Mortgage Co arranged a construction loan of $2.8M on the proposed The Shops at Kings Fort in Kaufman. The 13k SF retail center will be located on 1.73 acres on the south side of Kings Fort Parkway in Kaufman. The developer is Jim Meara with The Meara Co.
EXECUTIVES
Hudson Peters Commercial hired Curtis Hawkins as VP. He specializes in Dallas investment real estate focusing on the Oak Lawn, Uptown, East Dallas, Oak Cliff and Park Cities areas. His clients are mostly hands-on private investors buying and selling apartment buildings, strip centers and warehouses.
***
Marcus & Millichap named Stephen Crittenden a senior associate in the Dallas office. He joined Marcus & Millichap through the University of North Texas’ internship program in February 2011. After successfully completing the program in October 2011, he became a sales agent with the Ware Jarnagin Group specializing in multifamily property sales in the East and South Dallas submarkets.
GROUNDBREAKING
Sentinel Capital broke ground on the first phase of AllenPlace, a master-planned 22.5-acre, 700k SF five-building Class-A office park along the east side of North Central Expressway between Millennium and Butler drives in Allen. Grabbing a shovel and digging in is Alex Brown Realty’s Thomas Burton, Sentinel Capital’s Greg Nelson, Centra Partners’ Dusty Wolf, City of Allen’s Peter Vargas, Baine Brooks, Stephen Terrell, Dan Bowman, Gary Caplinger, Joey Herald and Michael Schaeffer. KONE announced earlier this year it would be the lead tenant for the $26M first phase.
***
Realty Capital Management broke ground on the first phase of The Highlands on FM 407 in Northlake. The 363-acre residential development that will include 222 one-acre estate lots. Here’s Realty Capital Management’s Tim Coltart (and his son, Keane, giving Mayor Peter Dewing a high five) along with the City’s Drew Corn; lower down is RCM’s Allison Cornwell, Dylan Leonoudakis, First United Bank’s Brent Walker and Brownstone Cos’ Jeramie Eitel.
