The Week in Deals
SALES
Olympic 1401 Elm Associates, a collaborative JV of Seth G. Weinstein of Olympic Property Partners and Bryan Dorsey of BDRC, purchased the 1.5M SF 1401 Elm. The new owners plan $170M in renovations to transform the vacant office building into a mixed-use residential, retail, and office tower covering a full city block and including 950 indoor parking spaces. The City of Dallas has agreed to provide up to $50M of Tax Increment Financing for the project. Cushman & Wakefield’s Scot Farber represented the seller, 1401 Elm Street Holdings, and assisted in the TIF process. Thompson & Knight’s Mark Weibel and William O’Connor served as legal counsel.
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A private investor purchased the Meadowcreek Shopping Center at 1515 E Kearney St in Mesquite. Marcus & Millichap’s Philip Levy repped the seller. The buyer, a private investor, was secured and represented by Marcus & Millichap’s Lisa Estrada.
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A private Texas LLC purchased the 80k SF Academy Sports + Outdoors net-leased property at 1101 W Arbrook Blvd in Arlington from a local developer. Marcus & Millichap first VP Jason Vitorino repped the seller and buyer. Within the first week of marketing, the property received multiple offers. The deal closed with an all-cash transaction in 45 days and netted in excess of $700k more than the original unsolicited offer.
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Caymus Ventures purchased a 12k SF building at 14071-75 Proton in Dallas. NAI Robert Lynn’s Tom Lynn and John McDaniel represented the landlord. In another NAI Robert Lynn deal, 5932 Melshire purchased a 16k SF building at 11517 Reeder Rd in Dallas. Bob Spletter and Jim Struble handled the transaction.
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Prologis sold a 227k SF industrial property at 1701 Timberlake Dr in Arlington to GRM Information Management Services. Lee & Associates’ Mark Graybill, Tom Walrich, and Trey Fricke represented the seller. Colliers International’s Phillip Rosenfeld and Matt Thompson represented the buyer.
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Heller-Roberts Texas sold a 313k SF distribution center on 15 acres to Braun Family Properties. CBRE’s John Brewer and Brian Gilchrist repped the seller. CBRE’s Michael Chiocca repped the buyer. In another CBRE deal, Bill Hatley sold 42 acres at the west side of Roy Orr and West Oakdale Road in Grand Prairie to Stream Realty Investments. CBRE’s Dave Anderson repped the seller. Wicker Associates repped the buyer. Stream plans a two-building spec project on site.
LEASES
TruckMovers leased 27k SF at 3740 E. Overton in Dallas. NAI Robert Lynn’s Matt Elliott represented the landlord. E Smith Realty Partners’ John Pelletier represented the tenant. In another NAI Robert Lynn deal, Rehrig Pacific Co leased 128k SF at 625 Mockingbird Ln in Dallas. Craig Jones represented the tenant.
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Flextronics leased 151k SF at 600 Shiloh Rd in Plano. Cassidy Turley’s Blake Anderson, David Eseke, and Dan Hollingsworth repped the tenant.
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Ozburn-Hessey Logistics signed a 419k SF lease at 3700 Pinnacle Point Dr in Dallas from MEPT Gateway/Pinnacle Park. CBRE’s Ann Huntington repped the tenant. Hillwood’s Bates Arnot repped the landlord.
NEW BUSINESS
KDC will develop a 500k SF building, to be leased by State Farm, at the developer’s CityLine mixed-use project in Richardson. The facility is the fourth building at CityLine to be leased by State Farm, bringing the company’s total leased space to 2M SF. The new facility will include a 12-story office building above a five-level parking structure and approximately 30k SF of ground-floor retail space. The building will be at the northeast corner of State Street and Plano Road, directly across Plano Road from the three previously announced buildings leased by State Farm, which are currently under construction. Construction on the fourth will begin in summer with completion slated for mid-2016. State Farm will use the CityLine facilities beginning late this year, with moves occurring throughout 2015. State Farm also confirmed that some employees from their Dallas Operations Center will move to CityLine when the space is ready and that the Operations Center is under contract to be sold. At full build-out, CityLine will have 6M SF of office space, two hotels, 3,925 multifamily residential units, 300k SF of grocery, restaurant, entertainment, and retail space, and three parks. Cassidy Turley’s Randy Cooper and Craig Wilson represented State Farm. Corgan is the project architect and Kimley-Horn and Associates is the civil engineer. Financing is provided by a syndicate of lenders lead by JPMorgan Chase.
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The Cowboys organization announced the key firms that will be working on the team’s new world HQ and city multi-use event center in Frisco. Among the project partners are Lincoln Property, Gensler, Manhattan Construction, O’Brien Architects, and Rex Real Estate. The project will be within a mixed-use development of approximately 90 acres at the northwest corner of Warren Parkway and Dallas North Tollway in Frisco. Lincoln will market and lease the additional office buildings, lifestyle, retail and restaurant space, hotel and residential components. Lincoln’s EVP office David Pettle, EVP residential Jeff Courtwright, and EVP retail’s Robert Dozier are collaborating on the project.
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Construction starts this month on the new six-story 165-unit Lincoln Knox apartments at 4501 Cole Ave in Dallas. Completion is targeted for September. Lincoln Property is the construction manager and developer, and Womack + Hampton Architects is the architect-of-record. Hill & Wilkinson is building the project.
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Granite Security Products broke ground on its 67k SF manufacturing and distribution facility, which will be adjacent to its existing office and production HQ at 4801 Esco Dr in Fort Worth. It is slated for completion in June. Speed Fab-Crete is the GC. Other team members are Callahan & Freeman Architects; Civil Point Engineers; Hulsey Engineering; and Leeming Design Group.
EXECUTIVE PEOPLE
Kevin Hickman joined the PegasusAblon team as VP of asset management. He will be responsible for the asset management of multiple PegasusAblon retail and office assets as well as serve as project manager for the Ablon at Frisco Square multifamily development. Prior to joining PegasusAblon he served as a senior asset manager for Sarofim Realty Advisors.
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E Smith Realty Partners promoted Brad Struck to president of industrial services. He joined the in 2013 and is charged with building and growing the industrial division and overseeing daily operations. Prior to joining E Smith Realty Partners, he served as VP at Transwestern.
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Henry S. Miller Brokerage promoted Craig Webb to SVP of the Dallas-Fort Worth corporate services division. He’s in his 12th year at HSM.
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Craig Wilson and Blake Anderson have been promoted to executive managing director and senior managing director, respectively, at Cassidy Turley. Craig will continue his leadership role with the tenant rep, as well as mentoring, recruiting, marketing and servicing new and existing clients. Blake will focus on leading the startup business line mentoring within the industrial team.
FINANCING
GE Capital’s Franchise Finance provided a $31.6M term loan to NewcrestImage to replace the short-term financing used for the construction of a dual-branded Marriott hotel property. NewcrestImage recently opened a Courtyard by Marriott, which has 181 rooms, and a TownePlace Suites by Marriott, which has 120 rooms, on this property.
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Karlin Real Estate provided DFW Economy Industrial with a $7.2M loan to fund the refinancing of a three-property industrial portfolio in suburban Dallas. The borrower was able to quickly obtain a bridge loan from Karlin after a previous lender could not meet the borrower’s need for a year-end closing. Acquired by DFW in 2006, the 268k SF portfolio includes two buildings in Arlington and one in Mesquite. Collectively, the buildings, are 88% leased.
KUDOS
CBRE managing director of project management Sean Goff was elected to the Dallas Children’s Advocacy Center board of directors, whose mission is to improve the lives of abused children in Dallas County and to provide national leadership on child abuse issues. The center coordinates the investigation, prosecution and treatment of child abuse cases.
