The Deal Sheet
Inland Real Estate Acquisitions’ purchase of the 97%-occupied Mansfield Pointe could be the poster child for retail deals going on in the marketplace. It’s all about lots of capital chasing the few Class-A stabilized retail properties for sale, says Disney Investment Group’s David Disney, who brokered the sale. (Sounds like the week before prom.)
The seller (an entity controlled by The Retail Connection and Granite Properties) has a shopping center that has a strong credit profile and that’s part of the allure of these properties, David tells us. Based on the overall limited supply of quality retail and cap rates remaining very low, it’s a great time for owners to put their product on the market, he says. (Right now people will pay anything for retail properties and audio of Solange Knowles in the elevator.) The 149k SF Mansfield Pointe, on the southwest quadrant of Hwy 287 and Debbie Lane in Mansfield, was developed in 2008 by Connected Development Services, an affiliate of TRC. TRC’s Alan Shor and Chad Bradshaw and Granite’s Paul Bennett repped the seller. Inland’s Matthew Tice facilitated the purchase on behalf of the buyer. (That’s David with his wife, Angelia, celebrating Christmas in Cabo San Lucas.)
David says if owners were ever thinking about selling, now is exceptional time to do it. The new developments under construction (think of all the mixed-use with CityLine and Trademark’s new Fort Worth plans) are creating more supply, which is sorely needed. David (along with colleague, Adam Crockett) also brokered the sale of the 19k SF Cross Timbers Village in Flower Mound to an undisclosed buyer. At FM 1170 and Bruton Orand Boulevard, the Tom Thumb shadow-anchored center was sold by an entity controlled by Direct Development and Thackeray Partners. David tells us the two properties sold for about $35M. When he’s not brokering deals, David likes to travel with his family. On the summer horizon: a trip to Italy. Arrivederci David!
THE WEEK IN DEALS
NEW BUSINESS
Construction started last month on the $20M 44k SF Parkland Clinic at Hatcher Station Village near Fair Park. The outpatient clinic is on a seven-acre site at Scyene Road and Hatcher Street, adjacent to DART’s Hatcher Station. Completion is targeted for early 2015. The center was designed by BOKA Powell for Frazier Revitalization and Parkland Health& Hospital System.
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Metropolitan Capital Advisors assisted Olympic 1401 Elm Associates (a JV between Olympic Property Partners and BDRC4Site) in a $40M finance package to acquire the building and begin the redevelopment of the project. Plans include transforming the longtime vacant property into a luxury Class-A multifamily, retail, and office tower. Construction should begin by early summer with an extensive interior demolition. The project is expected to deliver in 2016.
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Mainstreet and Greenbrier Development started construction on a new Next Generation Medical Resort near Plano Parkway and Independence Drive in Plano. The 67k SF two-story medical resort will offer 30 service-rich apartments for those who need well-planned assistance and 70 private and companion recovery suites for rehabilitation and therapy services. About 90% of the rooms will be single-bed rooms with private bathrooms. The hotel-like environment will feature concierge-style delivery of services and inter-generational activities. Once construction in completed during the Q1 '15, The Ensign Group will operate the resort. Adolfson & Peterson is building the facility, designed by PRDG Architecture.
LEASES
eGistics signed a 12k SF lease at Tollway North Office Park. Transwestern’s Justin Miller represented the owner, KBS Realty Advisors. Transwestern’s Nathan Rylander repped the tenant.
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U.S. Capital Advisors inked a 10k SF lease at The Crescent. Crescent Real Estate Equities’ Tony Click represented the owner. Cushman & Wakefield’s Matt Heidelbaugh repped the tenant.
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Texas All Risk General Agency signed a 10k SF lease at 9696 Skillman in Dallas from Founders Parnters. CBRE’s Mike Cleary repped the tenant. Tomlinson Leis repped the landlord.
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Estes Okon Thorne & Carr signed a 16k SF lease at 3811 Turtle Creek Blvd in Dallas from Metropolitan Life Insurance Co. CBRE’s Robert Blount and Jeff Ellerman repped the tenant.
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Lone Star Parade Float Co signed a 16k SF lease at 2716 N Westmoreland Ave in Dallas from Hargett Electrip Co. Henry S. Miller Brokerage’s Huntley Luna brokered the deal.
SALES
Institutional investors (advised by J.P. Morgan Asset Management) purchased the 784-unit Lincoln Las Colinas in Las Colinas from developer Lincoln Property Co, together with Sarofim Realty Advisors. The ARA Dallas team of Brian O’Boyle Sr, Brian Murphy, and Brian O’Boyle Jr led the marketing effort. The sale is among the largest single-asset multifamily transactions in state history, ARA execs tell us. The asset had an occupancy rate of 96.3%.
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CBRE’s Beth Pierson and Jennifer Pierson repped the seller in the purchase of the 15k SF Josey Rosemeade Shopping Center at North Josey Lane and East Rosemeade Parkway in Carrollton. Josey Rosemeade, an entity affiliated with Raywood Hasten, purchased the fully occupied asset. CBRE’s Adam Hedgpeth and Matthew Cutter provided financial and analytical consulting for the sale.
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Bright Realty’s Timothy McNutt and Britton Lankford brokered a sale for CHPC Commercial of 5.56 acres on the southwest corner on Old Denton and Parker roads to Office Equity Solutions. The land is within a master-planned development of 3,600 homes and 5,000 multifamily units.
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An LLC purchased the 172-unit Plantation Royal at 2825 Royal Ln in Dallas from a private investor. Marcus & Millichap VP of investments John Barker repped both buyer and seller. The property sold at 95% of the asking price, with an all-cash offer, and closed within 30 days.
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AEW Capital Management acquired the 394k SF The Shops at Highland Village at FM 2499 and FM 407 in Highland Village for one of its separate account clients, MassPRIM. Eastdil Secured’s Eric Zimmerman repped the seller, Blackstone Real Estate Partners VII. Trademark Property Co’s John Carl III repped the buyer. AEW plans to make capital improvements to augment traffic patterns and enhance public spaces.
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An investment group purchased 60 acres at the southwest quadrant of Hwy 380 and Custer Road in McKinney. Stratford Group’s Andrew Prine represented the purchaser. The seller was 380 Ranch Joint Venture.
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Presidium Group acquired the Villas of White Rock apartment complex in Dallas. The 442-unit complex located near White Rock Lake was purchased in an off-market transaction. Presidium Group plans extensive interior and exterior renovations to reposition the 1969-era asset. Presidium will also rebrand the property within the next few months.
THIS & THAT
JLL’s Larry Toon (and his family pictured here) hosted the Elizabeth Toon Charities’ annual concert and shootout last week. More than 1,700 people packed The Rustic for the sold out Elizabeth Toon Charities concert featuring Pat Green. Highland Park High School graduates, Charlie Berry and Brett Taylor from Mockingbird Sun, were the opening act of the night. A live auction raised more than $111k for the charities. The shootout included 450 people and 81 teams. First place was awarded to the Landry Team and second place went to Balfour Beatty Construction. All the funds raised at the concert and shootout will benefit 13 children’s charities in North Texas.
