To ensure delivery, please add newsletter@bisnow.com to your address book, learn how
July 16, 2014
Endeavor Boosts Brokerage
Endeavor, long known as a development powerhouse in Austin, is upping its retail brokerage game. (They're going from a power hitter to a five-tool player.) We chatted with Adam Zimel, who joined the firm this week as director of retail leasing.
Here's Adam between leasing associates Daniel Frey and fellow new hire Hollan Hensley. Adam has been one of the most active retail brokers in Austin for years—recently, he assisted the seller of a 53k SF building at 502 W Best White; the new owner has a tenant in tow and will repurpose the asset into office and warehouse space. He tells us his new role includes growing and servicing Endeavor's existing 1.8M SF retail portfolio and seeking new third-party listings (landlord and tenant rep plus investment sales). And of course, it'll continue its own and third-party development.
Adam particularly excited about Plaza Saltillo, which offers 120k SF of retail and 400 residential units (including affordable and seniors housing) just east of I-35. It'll be built on 11 acres owned by CapMetro. 604 W 6th St, which Endeavor is building third-party, will offer two 5,000 SF restaurant opportunities in the heart of Downtown Austin, which should be snapped up quickly. (Maybe we can open that all-quiche restaurant that no one's been clamoring for.) Endeavor's also starting on the second phase of Shops at Five Hills, an HEB-anchored project in Copperas Cove. It'll feature up to 110k SF of retail along the new Highway 190 bypass. He's gotten good initial response, lining up two junior anchors.
Finally, Endeavor's gearing up the next retail phase of the Domain, delivering 610k SF anchored by Nordstrom and Archer Hotel,a 168-key upscale boutique hotel. (Billy Osherow will take point on leasing.) Outside of work, Adam tells us he and his wife love to travel back to their hometown of Portland, Ore. in the summers with their five children. (They just went last week.) He loves hiking, fishing, white water rafting, and going to the beach, and he enjoys experiencing the changing retail market there. Austin and Portland are often referred to as sister cities, so each visit gives him the chance to get a different perspective on what works, what has failed, and what the next great concept might be.
To Build or To Buy?
If you want to buy an apartment complex, pull out the checkbook and get ready to add a lot of zeros. Not ready to get into a bidding war? You're not alone. Compressed cap rates are pushing multifamily investors to explore the possibility of development, says Legacy Alliance Holdings' Brad DeYoung (left, with Chris Leavell, and Fred Hopkins). Through development, Brad says, investors/owners feel they can get a better ROI and quality project than what's available to buy. That's led to a surge in business for Legacy over the last few years as a fee developer.
Legacy is the early development stages of an upscale multifamily project for a West Coast client near Fiesta Texas. The land's been acquired and the project is in the design phase with construction starting before year's end, Brad tells us. The owners have a particular interest in San Antonio because it's a stable, yet underserved market, Chris says. The growth in the renters by choice in the affluent markets, particularly around La Cantera, are pushing rents in some locations to $1.90/SF, he adds. When he's not working, Brad tells us he spends time tinkering with his '64 convertible Caddy.
Oden Hughes Launches PM Division
David Cox Photography
Oden Hughes also announced a new division this week—it brought on Stephani Park to lead its new in-house and third-party property management. Above, Stephani's second from the left with Oden Hughes' Tim Shaughnessy and Riverstone's Joe Hoffman, Mandy Zapata, Ashley Pruden, Matt Boerner, and Christyan Lepiz at the Austin Apartment Association property of the year awards last month. (Oden Hughes' Landmark Southpark won best lease-up property.) Stephani's been in the biz more than 25 years and is in the process of signing the firm's first third-party PM assignments.
Pizza Pizzazz
Mexican-themed eatery Pizza Patrón plans 25 new locations across the state including new stores in Dallas, Fort Worth, Houston, Austin, and San Antonio, says TWG VP of underserved markets Alberto Rocha. He's leading the effort to find prime locations.
Pizza Patrón looks for 1,000 to 1,400 SF in-line strip center locations near meat markets and bakeries, Alberto says. Ideal demographics are blue-collar, moderate income, with a high density of Hispanics. As it becomes more challenging to find good locations, Alberto says he's on the lookout for redevelopments, too.
YOU TELL US: Your Firm and Women's Careers
Women now earn more college degrees than men, are marrying and having kids later, and are significantly more career focused than generations past. (Even Rosie the Riveter has quite the LinkedIn profile.) These trends have spurred big changes in commercial real estate, and many major players have launched leadership programs to grow women's careers. We'd love to hear what your companies are doing; click our survey to tell us more. And make sure to read our most recent Real Estate Bisnow National newsletter to find out what's still keeping women from the top.
Do Developers Charge Development Fees?
Bisnow's exclusive, new 150-page Executive Research Report on Capital Structures tells all. It finds that, in addition to promotes, 40% of developers earn an acquisition fee as part of their deals. In the slide here, you can see what percentage of developers take on average on all kinds of fees, from property management to leasing. To see over 100 slides of analysis illustrating how investors and developers are investing and raising capital, we invite you to purchase our exceptional new research report here.
