Buy Five, Redevelop Five, Sell One Million
Last week, we mentioned Braun Enterprises purchased a retail property in the Energy Corridor. But that’s just the tip of the iceberg—prez Dan Braun tells us his firm also just wrapped up two other acquisitions, is under contract to buy two more in the next 30 days, just finished or is underway with five redevelopments, and has been selling nearly half its portfolio. (They are single-handedly keeping the ink business afloat.)
Dan snapped this photo of part of the Braun team during the build out of its new office at 3217 Montrose—founder Gabriel Braun (Dan’s dad), Jacob Braun (Dan’s oldest son, the king of Lego development—he’s had three boys in the past four years), and SVP James Fitch. Dan says Braun has historically bought under-leased or underutilized projects (mostly office and industrial), but the heated market of the last few years has pushed it more to Inner Loop retail and specialty office redevelopments that will have a higher and better use down the road. They’re smaller deals, which Dan says is difficult but really fun.
Besides 15455 Memorial, Braun acquired land on West Gray and a property at 4721 North Main. For the former, it purchased four contiguous tracts totaling one acre on West Gray between Dunlavy and Waugh. It took about a year to assemble through four separate closings. The team will consider ground lease, sale, BTS, or redevelopment here—above is a rendering of an 18k SF renovation it could do on the site. Braun purchased 4721 North Main, a 23k SF retail center in the Heights, off market and will begin significant renovations later this summer (rendered below). Dan tells us his team has two leases out for signature, which would account for more than 40% of the property.
The Braun team is also finished or near completion on five Inner Loop redevelopments: Harold in the Heights, 3217 Montrose, 1000 West Gray (it’s 85% leased and scheduled to complete mid-July), 250 W. 20th (100% leased and delivering mid-July), and the Lucky Burger project on Montrose. Dan tells us his firm is also in the process of selling (or has recently sold) 1M SF of the 1.6M SF it’s acquired since 2010. Braun historically has held product long-term, but Dan says its increased acquisition volume has led it to sell more to stay more nimble and available for new opportunities. (If it makes you more nimble and available we should increase our acquisition volume to improve our tennis game.)
