The Deal Sheet, Part 2
Velocis has launched its second fund with a target equity raise of $300M. What that means: an anticipated $800M of purchasing power that'll target financially distressed or under-managed US real estate assets in the $20M to $70M range. (We prefer to call them "underdog" properties.)
Velocis Fund II will use LTV up to 65% and anticipates snagging 25 or more properties over three years. Potential investors: institutions, large family offices, and high-net worth individuals in the US, Mexico, and Europe. Velocis' Fred Hamm, Paul Smith, Mike Lewis, Jim Yoder, and David Seifert are leading Fund II. Jim told us in April that the fund was coming and will likely follow the same investment pattern as the first fund by targeting MOBs, retail, and traditional office. (Pictured is the Colleyville Town Center, which was snapped by the first fund... since it has Borders in it, can we call it a retro snapshot?)
CONSTRUCTION & DEVELOPMENT
Huffines Communities broke ground on its 1,400-acre master planned community, Inspiration, near Lake Lavon (pictured with Huffines reps and local dignitaries, those bows are really going to get in the way of a clean dig). Huffines also recently marked the opening of the second phase of the Hebron 121 Station, which features 444 apartments. Hebron 121 is Denton County’s first TOD and is adjacent to the new DCTA Hebron rail and bus station near Vista Ridge Mall in Lewisville. The City of Lewisville is constructing a new bridge to I-35 to make access to Hebron Station 121 even easier. Partners include Humphreys and Partners, CF Jordan Construction, and Pinnacle Property Management.
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Maxim Management Group started construction on the first free-standing inpatient rehab hospital in Weatherford. The 27k SF hospital is at 703 Eureka St near the Weatherford Regional Medical Center. It's expected to open in the first quarter of 2015.
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2GR Equity entered a JV with the Rochester Group to build a 73k SF assisted living and memory care facility with 51 assisted living units and 44 memory care units on 3.1 acres in the northeast quadrant of East Broad Street and Matlock Road in Mansfield. Three Living Architecture designed the community, which will be branded as Rochester Springs Assisted Living and Memory Care. 12 Oaks Senior Living will be responsible for managing the facility.
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HFF’s Jeremy Sain and Steven Heldenfels arranged construction financing for the development of the 105k SF Victory Medical Center surgical hospital in Fort Worth. HFF worked for the borrower—a JV between Harrison Street Real Estate Capital, Pisula Development Co, Victory Healthcare, and a physician-ownership group—to secure the 6.5-year construction loan through Comerica Bank. Victory Medical Center, at the northwest corner of Pennsylvania Avenue and South Main Street, should be completed next year and will be fully occupied.
LEASES
Smart Dog Dallas inked a 23k SF lease at 326 Rock Island in Dallas from Hargett Electric Co. Henry S. Miller Brokerage’s Huntley Luna brokered the deal.
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FlexXray signed a 40k SF lease at 3751 New York Ave in Arlington from G&I VII Midpoint. Lee & Associates’ Trey Fricke and Reid Bassinger represented the tenant. The landlord was represented by Stream’s Matt Dornak.
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Mitel signed a 53k SF lease in Granite Park IV as part of a consolidation of its Dallas-based facilities. The new Granite Park office will also serve as the company’s HQ in the Americas. Mitel was represented in the transaction by CBRE’s John Roper. Granite’s Jim Kirchhoff and Robert Jimenez repped the landlord.
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USHealth Administrators leased 57k SF at 300 Burnett in Fort Worth. Transwestern’s Grant Huff, Jack Huff, and Kyle Poulson represented the tenant.
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United Technologies Corp signed a 65k SF lease at 1177 N Great Southwest Pkwy in Grand Prairie from Coherent Properties. Cushman & Wakefield’s Gary Collett repped the tenant. Colliers International’s Kevin Brookmole and Wade Smith repped the landlord.
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Good Earth Corp leased an acre at 8198 Hoyle in Dallas. Transwestern’s Joe Whitmer and Clint Riley represented the landlord.
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Kubota Tractor Corp renewed 42k SF at 4300 Diplomacy Rd in Fort Worth. Transwestern’s John Fulton represented the landlord.
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NAWF Co signed a 76k SF lease at 1213 WN Carrier Pkwy in Grand Prairie from IndCor Properties. Lee & Associates’ Mark Graybill and Scott Giordano represented the landlord. The tenant was represented by CBRE’s Tim Vogds.
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Infolmage of California renewed 31k SF at 875 W Sandy Lake in Coppell. Transwestern’s John Fulton and Brett Owens represented the landlord.
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Etan Industries signed a 21k SF lease at 13355 Noel Rd in Dallas from GT Dallas Properties. CBRE’s Josh White repped the tenant. Colliers International’s Chris Lipscomb repped the landlord.
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La Azteca leased 14k SF at 407 Eldorado Pkwy in Little Elm. Retail Solutions’ Chris Flesner and Taylor Mann represented the landlord.
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XPS Solutions signed an 18k SF lease at 2703 Telecom Pkwy in Richardson. NAI Robert Lynn’s Dave Peterson, Tom Lynn, and James Davis repped the tenant.
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Total Wine & More leased 33k SF in Arlington. WindStar Properties’ Cynthia Bailey repped the landlord, WindStar Texas Investors. The tenant was represented by UCR’s Darrell Hernandez and Jack Breard.
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Circuit Design Specialties signed an 18k SF lease at 3301 E. Plano Pkwy in Plano from First Guardian Group. Lee & Associates’ George Tanghongs and Brett Lewis represented the landlord. Swearingen Realty Group repped the tenant.
THIS & THAT
Frisco EDC’s Nancy Windham and McKinney EDC’s Chad Walker combined their recruitment efforts by sharing a North Texas/Collin County presentation at the TexasOne Invest in Texas forum in Ireland and Spain. Approximately 146 companies interested in doing business in Texas attended the events. Here’s Chad and Nancy with a contingency from the US.
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Cushman & Wakefield’s JJ Leonard did his third Carry the Load walk (here with colleague Mike Wyatt). This year, Team C&W raised more than $22k to help Carry The Load Dallas reach its $1.3M raised. JJ tells us he carried six of his heroes including “both of my late grandfathers, William Leonard (CWO5 – USA) and Warren Woolf (LCDR – USN), retired veterans of WW II and Korean Wars; three of my US Naval Academy classmates, who were good friends of mine; and my doctor’s nephew Ben Sklaver.”
EXECUTIVE MOVES
Jason Gundrum joined ML Realty Partners as project manager. He will coordinate tenant improvements and assisting development efforts for ML Realty Partners in the DFW, Houston, and Chicago markets. He comes from Villa Capital Partners.
