REDNews January 2016 - Southeast Texas by RE Journals

JANUARY 2016

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Texas Property Tax Code GALLERIA

AFTON OAKS

North Texas

HIGHLAND VILLAGE

How Fair Is It?

Growing

Interview with

John Fenoglio

STH

Just Keeps on

EIM

ER S T.

The

Interest Rate Hike and What it Means for Texas

GREENWAY PLAZA

3000 ALABAMA COURT

SITE T. EDLOE S

±34,562 SF SWC OF W. ALABAMA AND EDLOE HOUSTON, TX William A. McDade 713.577.1876

Kristen McDade 713.577.1808

Peter Mainguy 713.577.1782

Nolan Mainguy 713.577.1841

3000 ALABAMA COURT ±34,562 SF SWC OF W. ALABAMA AND EDLOE HOUSTON, TX

PROPERTY HIGHLIGHTS • ±34,562 sf of land located at the southwest corner of W. Alabama and Edloe St. in Houston, Texas. A welltrafficked, lighted intersection near Greenway Plaza and Highland Village. • Property is in close proximity to St. John’s School and Lamar High School. Also close to St. Luke’s United Methodist Church and Lakewood Church • Ease of access to main transportation arteries; property is nestled among Greenway Plaza, Highland Village, Upper Kirby and West University • Property currently has 2 curb cuts from Alabama Court, the western border of the property and one curb cut on West Alabama

• Please contact Brokers for pricing.

William A. McDade 713.577.1876

Kristen McDade 713.577.1808

Peter Mainguy 713.577.1782

Nolan Mainguy 713.577.1841

ST.

• Property is well-suited to a number of uses, including Restaurant/Retail, boutique office, MF/Condo or a variety of specialty uses

EDLOE

• Property includes ± 93’ of frontage along West Alabama and ± 300’ of frontage along Edloe Street

SITE WEST ALABAMA ST.

THE TERRACES at DOUGLAS CENTER

The Center of Preston Center. The Terraces is an office building designed for the 21st century user.

D E TA I L S 170,000 Square Feet of Class AA Office in Preston Center

So-named for the terraces which grace the highest floors, it’s unique

Under Construction

design treats upper floor tenants to expansive views of North Dallas.

Opening in early 2017

From the high-touch lobby and service-based security and concierge program, the Terraces is a new interpretation of the modern office. Designed to accommodate well established and entrepreneurial firms

LEASING R UTH G R I G G S | 2 14 . 2 17.9 96 8 M I C HAEL AB LO N | 2 14 . 3 69.7287

alike, it’s Preston Center’s best building at the best location.

D O U G L A SC ENTER DALL A S .CO M

CONTENTS

Market

Sales & Leases 1–3, 5, 7–9, 11, 13, 17, 19, 35–36

Services

Environmental Services 22 Legal Services 33

Scoop

Events 24, 26, 28 Social 25, 27, 29 Bulletin 30–32

Features

The $5 Billion Mile: How Frisco Is Leading the North Texas Development Boom 10–12 CIVIL FAIR PLAY How Consistent & Fair is the Texas Property Tax Code? 14, 15 What do Lobbyists & CRE Have in Common? 16 Banking on the Fed: What December’s Interest Rate Hike Means for Texas 18 RAY'S BUZZ Interview with John Fenoglio 20–21 Broker Tradecraft and Etiquette 34

January 2016

ACRES OF OPPORTUNITY ABOUND IN HOUSTON AND SOUTHEAST TEXAS.

ELDRIDGE PARKWAY JUST NORTH OF CYPRESS NORTH HOUSTON

MORTON ROAD NEAR KATY HOCKLEY

Land For Sale - 7.81 Acres

• Easy access to Highway 290, Highway 249 and FM 1960 • Excellent frontage on North Eldridge Parkway • Unrestricted • Seller may divide Contact: Keith Grothaus, CCIM, SIOR

Land For Sale - 49.07 Acres

• Approximately 1,750 FT of frontage along Morton Road • Approximately 1,200 FT of frontage along Katy Hockley Cut-Off Road • Unrestricted - Utilities available through the City of Katy Contact: Keith Edwards, CCIM, SIOR

HIGHWAY 290 - BRENHAM

HIGHWAY 249 & ALICE ROAD

Land For Sale - 52 Acres

Land For Sale - 4 Tracts / 22 Total Acres

• Approximately 885 FT of frontage along Highway 290

• Approximately 650 FT of frontage along Business Highway 249

• Approximately 2,000 FT of frontage along Market Street • Not in floodplain • Unrestricted

• Approximately 1,690 FT of frontage on Highway 249 • No detention required • Unrestricted and not in floodplain

Contact: Keith Edwards, CCIM, SIOR

Caldwell Companies has the extensive local experience and unmatched market expertise needed to serve your land brokerage needs. HOUSTON

THE WOODL ANDS

CaldwellCos.com

COLLEGE STATION

713.690.0000

Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PUBLISHER

Ginger Wheless ginger@REDNews.com

EDITOR

Margie Gohmert info@REDNews.com

STAFF WRITER

Janis Arnold janisarnold1@gmail.com Brandi Smith info@REDNews.com

Dear Readers,

Happy New Year! I hope your holidays were exceptionally good, that you’re not five pounds heavier and if you had any New Year’s resolutions, they are still intact.

The big topic of discussion for everyone this past year was speculation about the effect the price of oil would have on the Texas commercial real estate market. As indicated by Brandi Smith’s article on Pages 10 -12, it certainly hasn’t impacted the North Texas area. Frisco, Weatherford and Grand Prairie, to name just a few of the cities being impacted, are experiencing record growth. We will continue to report on other Texas boom areas throughout the year. Thank you to all who sent in your comments about the addition of our Civil Fair Play column. It appears that many of our readers wholeheartedly welcome an opportunity to express their frustrations in dealing with their perception of municipal inequity and inefficiency. And, in all fairness, we plan to give both sides an opportunity to tell their story. Here’s to your very happy and successful 2016!

CONTRIBUTING WRITER

Ray Hankamer rhankamer@gmail.com

ART DIRECTOR

Payton Watkins payton@camalla.com

DATABASE MANAGER

Rahul Samuel emarketing@REDNews.com

DIGITAL/MARKETING DIRECTOR

Laura Salazar digital@REDNews.com

ACCOUNTING

Benton Mahaffey accounting@REDNews.com

SALES

Laura Salazar digital@REDNews.com Ginger Wheless ginger@REDNews.com

PRINT & DIGITAL DISTRIBUTION

REDNews is directly mailed each month to commercial real estate brokers, investors & developers.

Best Regards, Texas Brokers: 7,650 Texas Leasing/Tenant Rep: 6,232 Texas Investors: 4,979 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 81,577

Ginger Wheless

TOTAL REDNews DISTRIBUTION: 105,148 REDNews has gone green using recycled paper. Thank you Midway Press! To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription. 5909 West Loop South, Suite 135 Bellaire, TX 77401

January 2016

Major Redevelopment! Come see the AMAZING CHANGES!

MALL OF THE MAINLAND 10000 Emmett F. Lowry Expressway, Texas City, TX 77591

PROPERTY INFORMATION • New Power/Entertainment Redevelopment • Current retailers include Cinemark Movies 12, Sears, Palais Royal, World Gym, Olive Garden, Gringos, Beyond Burger, Tuscany Village Salons and Galaxy Nutrition • 7,000 new homes coming to immediate trade area • 3 miles from College of Mainland with over 5,000 students

RENT NOW AT YESTERDAY’S PRICES

PAD SITES FOR SALE surrounding the mall

16,308 SF

CONTACT INFORMATION

Deanna Jerome (409) 986-7000 (832) 282-8451 mainlandmalltx@gmail.com Press 0 for more information on sales or leasing

PAD SITES

Parcel #

Size (acres)

Size (SF)

4.0260

175,373

1.1040

48,090

1.0000

43,560

0.6037

26,297

4.4600

194,278

0.7161

31,193

3.9390

171,583

1.1060

48,177

9.3710

408,201

9.6830

421,791

Total

36.0088

1,568,543

AVAILABLE IMMEDIATELY! • • •

PREVIOUS FURNITURE STORE Great location right in between Sears, World Gym, and Palais Royal Glass front windows and doors Wide open space can be fitted to suit your needs

CALL TODAY Brokers welcome 6% commission

Personalized Service. Proven Results.

www.tarantino.com ASHFORDPROFESSIONAL PROFESSIONAL ASHFORD

• Two Story Story Medical Medical • Two Office Building Building Office • Renovated in 2008 • Up to 2,392 SF Available • Services the Memorial & Surrounding Neighborhoods

909 Dairy Ashford Rd, 909 Rd, Houston, TX 77079 Houston, 77079

NANES NANES PROFESSIONAL PROFESSIONAL

17030 Nanes Dr, Dr, Houston, 77090 Houston, TX 77090

MEDIC AL MEDICAL • Two Story • Medical/ Two Story Medical/ Professional Office Building • 11,929 NRA Contiguous Space Available on Second Floor • Located 2 Miles from the Houston NW Medical Medical Center • Center 15 Minutes • 15 fromMinutes IAH & The from IAH & The Woodlands Woodlands

NORTHGREEN ATRIUM BUILDING 7660 WOODWAY • • • • • •

7660 1300 N. SamWoodway Houston Parkway Houston, 77063 Houston, TX 77032

5507575 GREENS SANPARKWAY FELIPE

7575 San Felipe 550 Greens Parkway Houston, Houston, TX TX 77063 77067

ASHFORD PROFESSIONAL January 2016

• 46,462 SF, SF, Three Three • 46,462 Story Medical Medical Story Office Building Building Office • 80 Free Free Surface Surface • 80 Parking Spaces Spaces Parking • Recently Renovated Lobby • Generous TI Allowance

Up toOwnership 16,014 New NRA Available 1,000-56,000 Five Level, Class B NRA Available Office Building Building Identity Available Renovated in 2014 Beautiful Atrium Property Secured Lobby with Granite by Security Gate & Finishes Card Key Access

• Three Story Office Building • Beautiful Fully Remodeled Lobby & Common Areas • Conveniently Located Across Bayshore Medical Center • Generous • Generous TI IT Packages Allowance

• 1,000-40,000 • 1,000-40,000 NRA NRA Available Available • Completely • Completely Remodeled Remodeled in in 2015 2015 • Private Corner Corner • Private Balconies on on Upper Upper Balconies Floors Floors • Located near near FM FM • Located 1960 & & I-45 I-45 in in 1960 Champions Forest Forest Champions

OFFIC E OFFICE • 1,510-2,398 SF Available in • Suburbs Full Building, of the 72,000 NRA Galleria Available for Lease • Common Areas, • Lobby New Ownership & Restrooms in • Remodeled Beautiful Atrium 2015 Lobby, High End • Monument Signage Finishes & Lush Available Landscaping • Numerous Secured Covered Shopping Parking Centers & Restaurants Nearby

• Two Story Medical Office Building • Renovated in 2008 • Up to 2,392 SF

908 908E. E. SOUTHMORE SOUTHMORE

908 E 908 E Southmore Southmore Blvd, Blvd, Pasadena, TX TX 77502 77502

PASADENA PROFESSIONAL PROFESSIONAL PASADENA

3315 Burke Burke Rd, Rd, Pasadena, TX TX 77504 77504

NORTHCHASE BUSINESS NORTHCHASE BUSINESSPARK PARK

14505 14505 Torrey Torrey Chase Chase Blvd, Blvd Houston, TX 77014

1505 HIGHWAY HIGHWAY 66 1505

• 1, 1,117-10,551 117- 8,849 SF Available • Lobby & Common Areas Remodeled in 2014 • Covered two Two (2) (2) story Story parking Parking garage Garage • Located • Located near near the the Energy Energy Corridor Corridor

Personalized Service. Proven Results. 1505 Highway Highway 66 www.tarantino.com Houston, TX TX 77077 77077

• 46,462 SF, Three Story Medical Office Building • 80 Free Surface

908 E. SOUTHMORE

WOODFOREST SHOPPING SHOPPING CENTER WOODFOREST CENTER • Up Up to to 11,017 30,979 SF SF • Available Available End Cap Cap Available Available • End NWC I-10 I-10 EE • NWC Frontage @ @ John John Frontage Ralston Ralston

10907-11095 I-10 East 10907-11095 Houston, TX 77029 Houston,

RETAIL RETAIL

RESEARCH PLAZA RESEARCH PLAZA

19189 I-45 North 19189 Shenandoah, TX 77385 Shenandoah,

DE DE ZAVALA ZAVALA

12770Cimarron Cimarron Path, Path 12770 SanAntonio, Antonio, TX 78249 San 78249

1005 1005 INDUSTRIAL INDUSTRIAL

• 3,965 3,965 SF SF End End Cap Cap • Available Available Freeway Visibility Visibility • Freeway from I-45 I-45 North North from • Ample Ample Parking Parking • Anchored Anchored by by Walgreens, Walgreens, Party Party City, Subway City, Subway

• Hard Corner Corner of of • Hard Hwy 90 90 & & Dairy Dairy Hwy Ashford Ashford • Up to 3,901 2,170 SF Available • Great Co-Tenancy • Traffic Count Exceeds 78,000 CPD

• 3,000 3,000 –- 10,000 • 10,000 SF, Flex Flex Office Office & & SF, Biomedical Space Biomedical Space Available Available Climate Controlled Controlled • Climate Warehouse Warehouse • Generous Generous Tenant Tenet Finish-Out Finish-Out Allowance Allowance • Northwest Northwest Location Location with with Easy Easy Access Access to to I-10 I-10 & & 1604 1604

• Suite 250: 4,225 • SF 16,346-40,029 Warehouse & NRA Available 3,336 SF Office for Lease Space Available • Easy Access to 8. I-45 Beltway 8, & IAH and IAH Semi-Dock High •2 Conveniently Loading Bays Located to Accommodate •1 Up- Ramp Land, Air Drive & Railin Allowing Transportation Access • Air Conditioned Warehouse

INDUSTRIAL INDUSTRIAL • Stand-alone 15,000 • Stand-alone SF Building 15,000 SF Building • (3) 10ft. 10ft.Roll Roll Up Up doors-Grade doorsGrade Level Level Loading • Warehouse Ceiling Height 20ft. • New Roof

1005 Industrial Industrial 1005 Sugar SugarLand, Land, TX TX 77478 77478 CORPORATE OFFICE: WOODFOREST CENTER 7887 SanSHOPPING Felipe, #237 Houston, TX 77063 (713) 974-4292

• Up to 6,882 SF • Up to 6,845 Retail Space Retail Space Available Available • Easy • Easy Access Access to to Highway Highway 6 6& & U.S. U.S. Hwy Hwy 59 59 • Traffic • Traffic Count Count Exceeds Exceeds 30,653 30,653 CPD CPD

• 3500 SF, Air- Conditioned Space Available • 10,663 SF • Deed Restricted Available Business Park •3 Phase at Power Located the • 18ft Ceiling Height Corner of Fallbrook & Beltway 8 to • Easy Access • Beltway Tilt Wall 8 Construction with Decorative Interior Walls

SAN ANTONIO OFFICE:

TOWNSHIP TOWNSHIP SQUARE SQUARE

3340 FM 3340 FM 1092 1092 Missouri City, Missouri City, TX TX 77459 77459

SUGAR SUGARPOINT POINTSHOPPING SHOPPING CENTER CENTER

9920 Hwy Hwy 90 90 Sugar Land, TX TX 77478 77478

1540215340 VANTAGE PARKWAY E VANTAGE

15402 15340 Vantage Parkway Parkway E, E, Houston, TX 77032 77032 INTERCONTINENTAL BUSINESS PARK LEGACY PARK BUSINESS CENTER

15344 Vantage Parkway E 10930 W. Sam Houston Parkway N. Houston, TX TX 77064 77032 Houston,

AUSTIN OFFICE:

TOWNSHIP 12770 Cimarron Path St. 122 502 East 11th Street, #400SQUARE January 2016 San Antonio, TX 78249 • Up to 6,845 Retail Austin, TX 78701 Space Available (512) 302-4500 • Up to 11,017 SF 212-6222 (210) Available

• Easy Access to

Credit: maps.stamen.com

The $5 Billion Mile How Frisco Is Leading the North Texas Development Boom BY BRANDI SMITH

No matter the sector, no matter the area, no matter the price tag, North Texas’ commercial real estate market is booming in a way we haven’t seen in a generation. The combination of nearly exponential population growth and nearrecord job numbers is pushing development all around the DallasFort Worth area. The region’s so hot, it grabbed the attention of PricewaterhouseCoopers and ULI, which put Dallas-Fort Worth at the top of the “Top 20 Markets to Watch” in their 2016 Emerging Trends in Real Estate report.

“This year I think there were over 2,000 interviews from executives in the real estate industry as to their investor preferences around geography, product type and the various characteristics that cause them to rank certain markets,” said PwC partner Byron Carlock. “As you saw, Dallas was ranked number one this year for several of its attractive attributes.” Carlock pointed to the area’s development activity, expected yields to investors, general economic strength evidenced by occupancies and job growth, as well as 10

January 2016

some of the softer elements associated with cultural, educational and continued infrastructure improvement, such as expansion of the light rail system.

The report itself said “the market continues to benefit from strong investor interest, plenty of available capital, and a strong local development community.” However, this boom isn’t isolated to Dallas city limits. “I think you have to look at North Texas regionalism, knowing that Dallas is the cultural, educational and kind of foundational nexus, but there is so much happening throughout north Texas on a regional basis,” Carlock said.

Those four projects alone total a whopping $5.4 billion, stretched along a mere 5,280 feet in Frisco. There are myriad examples: A 50,000 square foot Roger Williams AutoMall is under construction in Weatherford, which bills itself as "The Western Gateway Business Centre of the DFW Metroplex." Ross Perot Jr.’s company, Hillwood Communities is working on a $500 million, 400-acre masterplanned community in Celina. A four-story

apartment building, named The Mark at Midtown Park, is going up in North Dallas, courtesy of Commodore Development LLC. Metlife and Panattoni partnered on an investment in Lancaster: a 250-acre industrial park. Mohr Capital Partners has started construction on a 430,000 SF industrial project in Grand Prairie, Texas.

However, the boom is illustrated no more clearly than in Frisco, a northern suburb of Dallas. Fifteen years ago, the city was a bedroom community of roughly 33,000. It’s since grown by more than 300 percent, now topping 150,000. Not only is the community home to thousands of families, it is also home to a kind of development boom you’d be hard pressed to find anywhere else in the United States.

“City leaders 20 years ago had a vision of what they wanted to become and they started making investments to get there,” said Dave Quinn, vice president of Frisco Economic Development Corp. “They understood that if we can attract the talent, meaning the families and the people to live here, someday, corporations are going to wake up and say, ‘Oh my gosh. Why am I having people drive an hour here? Why not locate in the heart of all this where the people are living?’ That's what we're seeing today, that visions come to its own.”

430,188 SF AVAILABLE

430,188 SF AVAILABLE For proof, Quinn offered up Frisco’s $5 Billion Mile.

“[It] is actually four different mixed-use projects,” he explained. “As far as we know, there's not another area in the country where you have that type of diverse investment happening in such a small area.” The four projects, which are located along the Dallas North Tollway between Warren Parkway and Lebanon Road, are as different in their scope as they are in their price tags. The flagship is The Star at Frisco, a 91-acre mixed-use development spearheaded by the Dallas Cowboys.

“It's their corporate world headquarters,” said Quinn. “With their practice and training facility, cheerleaders, their whole organization will be based here in Frisco.”

The $1 billion complex will also feature two hotels, a 12,000-seat event center, as well as a unique opportunity for Frisco students. While the Cowboys manage 71 of the acres on this $1 billion project, the rest is a public-private partnership between the team, the City of Frisco and the Frisco Independent School District. Quinn said, to his knowledge, this is the first such partnership between an NFL team and a school district.

“This provides us with a needed third stadium at a quality and caliber that we could not have built or maintained on our own with the same amount of investment,” said Dr. Jeremy Lyon, Frisco ISD’s superintendent. “In addition to a place to play, perform and meet, the partnership provides many outstanding educational opportunities for our students.” The second project is the $1.7 billion Frisco Station, developed by Rudman Partnership, Hillwood Properties and VanTrust Real Estate. It will cover 242 acres and provide 6 million square feet of

office space, 990,000 square feet of medical office, 200,000 square feet of retail and 75,000 square feet of restaurants.

Project No. 3 comes in the form of The Gate, a 41-acre development that will include two 10-story luxury condo buildings, a boutique hotel, restaurant space and four office buildings. It’s being developed by Invest Group Overseas, a Dubai-based group making its first investment in the United States. “They were actually the first to announce here in Frisco,” Quinn said. “Funny story is that, they were here first before the Cowboys and their land has obviously skyrocketed once the other projects started being announced. Now, they are the baby of the bunch at $700 million.”

Finally, the biggest development: the $2 billion Wade Park. Thomas Land Development has grand plans for its 175 acres, which include bringing in Whole Foods, iPic Theatre, Pinstripes, and Hotel Zaza. The project will also feature another hotel: the Langham Hotel Tower. Set to open in early 2018, the 35-story tower will include 25 floors of luxury hotel rooms, 25,000 square feet of meeting space, a rooftop pool deck and 10 floors of residential homes. Those four projects alone total a whopping $5.4 billion, stretched along a mere 5,280 feet in Frisco. Quinn pointed out that the investment value breaks down to nearly a million dollars per linear foot. Though Frisco’s growth—both in population and development— has been rapid, city leaders said this is the goal toward which they’ve been working for many years. “Frisco’s first master plan was adopted in 1982 and has been continually updated since then, thus the growth has been in the planning for decades,” said George Purefoy, Frisco’s city

4 0 0 0 M AT THE W ROA D | GR A N D PR A IR IE, TE X A S | 750 52 4 0 0 0 M AT THE W ROA D | GR A N D PR A IR IE, TE X A S | 750 52 4 0 0 0 M AT THE W ROA D

GRAND PRAIRIE, TEXAS

75052

PROPERTY DETAILS PROPERTY DETAILS Total Available SF: 430,188 SF PROPERTY DETAILS

Total Available SF: 430,188 SF Divisible ~ 100,000 SF Totalto:Available SF: 430,188 SF Divisible to: ~ 100,000 SF Office:Divisible BTS to: ~ 100,000 SF Office: BTS Office:Clear BTS Height: 32’ Structural Structural Clear Height: 32’ Structural Power: BTS Clear Height: 32’ Power: BTS Power: BTS 82 - 9’ x 10’ Dock High Doors: Dock High Doors: Dock High Doors:82 82- -9’9’xx10’ 10’ Oversize Ramp Door: 4 - 12’ x 14’ Oversize Ramp Door:44- -12’ 12’xx 14’ 14’ Oversize Ramp Door: Dock Levelers: BTS Dock Levelers: BTS Dock Levelers: BTS Trailer Positions: 41 (expandable) Trailer Positions:4141(expandable) (expandable) Trailer Positions: Bay Size: 52’ wide x 50’ deep Size: 52’ wide x 50’ deep BayBay Size: 52’ wide x 50’ deep Building Dimensions: 860’860’ wide x 500’ deep Building Dimensions: wide x 500’ deep Building Dimensions: 860’ wide x 500’ deep Truck Truck CourtCourt Depth: 130 130 - 140’ deep concrete Depth: - 140’ deep concretetruck truckapron apron Truck Court Depth: 130 - 140’ deep concrete truck apron Car Parking Spaces: 176 176 (expandable) Car Parking Spaces: (expandable) CarConfiguration: Parking Spaces: 176 (expandable) Configuration: CrossCross DockDock Configuration: Cross Dock Sprinkler: Sprinkler: ESFRESFR Sprinkler: ESFR

161

161 161

SARA JANE PKWY 635 45E JA RNAEJPAKNWEYPKWY SA 635 63545E 45E SARA 35E

35E 35E20

BARDINRDRD BARDIN

BARDIN RD

FOR LEASING INFORMATION:

FOR LEASING INFORMATION: Cannon Green FOR LEASING INFORMATION:Sarah Ozanne Cannon Green cgreen@streamrealty.com Cannon Green cgreen@streamrealty.com 214.560.5096 cgreen@streamrealty.com 214.560.5096 214.560.5096

Blake Kendrick

Sarah Ozanne Blake Kendrick sarah.ozanne@streamrealty.com bkendrick@streamrealty.com Sarah Ozanne Blake Kendrick sarah.ozanne@streamrealty.com bkendrick@streamrealty.com 214.210.1281 214.267.0472 sarah.ozanne@streamrealty.com bkendrick@streamrealty.com 214.210.1281 214.267.0472 214.210.1281 214.267.0472

 2014 - 2015 “New Openings!”

Imperial Construction Corp HQ - 33K sf

26K sf Weatherford Physical Rehab Hospital El Fenix

KEG1 O’Neal Regional Distribution Center -80K sf/40 acre WH BP

“The Western Gateway Business Centre of the DFW Metroplex” 74K sf “Film Alley Weatherford” M-B-G

 “Coming” in 2015 - 2016

QT 7K sf TC 50K sf Roger Williams CDJR AutoMall

ALDI Anchored SC/ RaceTrac Power Service Products WH/Processing Facility - 103,000 sf

City of Weatherford Economic Development

202 W. Oak St. |

Weatherford, Texas 76086 | 817.594.9429 | Direct 817.598.4302 January 2016

dclayton@weatherfordtx.gov;

www.weatherfordtxeda.org

McKinney

Credit: scribblemaps.com

Denton

Frisco

Plano

Garland

Weatherford

Fort Worth

Grand Prairie

Dallas

Credit: themarkdallas.com

“In Frisco’s case, the Frisco Independent School District and the city working together for our citizens has proven to be one of the key factors in our success,” said Purefoy. “The small school model adopted by the school district has made Frisco a preferred location.”

As the district has growth, so has the city, sharing the benefits through Tax Increment Financing. Frisco’s TIF Zone No. 1, started in 1997, was a partnership between the City of Frisco, Collin County, Frisco ISD and Collin County Community College District. It helped build the Frisco Superdrome, the Frisco Sports Complex, Dr. Pepper Ballpark, Dr. Pepper StarCenter and Pizza Hut Park. Credit: us.jll.com

manager. “Furthermore, the city has been successful in implementing these plans.”

Part of that plan in the beginning included building Frisco as a bedroom community, as a way to way to draw corporations.

“When you can attract a skilled work force to live here, people are starting to look and say, ‘Well, instead of moving and trying to lure my folks to come live by me, why don't I just locate in a location where they are already living?’” Quinn said. “Our demographics were very favorable for the type of investment that's being made in our area.” The Frisco Independent School District played a huge role in helping bring families north of Dallas. 12

January 2016

“The District’s involvement allows us to participate in public-private projects with the City of Frisco that create world-class opportunities for our students, while saving taxpayer dollars and stimulating economic growth and development,” said Frisco ISD’s Dr. Lyons.

Quinn said, once the first domino fell in the form of Toyota’s relocation to Frisco, the rest followed suit. “When you have someone like Toyota make the decision to move to North Dallas, obviously others look around and say, ‘Why did they do that?’ They start to follow that move because they know Toyota wouldn't have done it if it wasn't a great location and if there wasn't some importance to do in that,” said Quinn. “That's what we're seeing on a corporate side. Each time we have a

From Top: North Texas boom areas. The Mark in North Dallas, Commodore Development LLC. An industrial park in Lancaster, MetLife and Panattoni.

corporate announcement, it makes it a little easier for the next corporate person to come in and make a decision to move to North Texas.” Both Purefoy and Quinn credit some of Frisco’s success to the Texas business environment.

“If you want to do business on the east or west coast, you can do that from Dallas, Texas and it's really easy,” explained Quinn. “You're no more than three hours from either coast. You work on Eastern timezone and Pacific timezone. For us, it's very easy to do business.” Frisco stands as just one example of how, with a little planning and foresight, communities are able to exploit the attractive qualities of North Texas and convert them into local benefits. There will certainly be many more examples in the years to come. ●

- -

Wolverine Property Management LLC

Cinco Ranch Office

Superb Prestigious Corner Location SEC Mason Rd & Fry Rd., Cinco Ranch Lease Offering Data

Space Available:

15,000 +/- SF (can be subdivided-call for terms) Space Condition: 2nd Generation Term: 5+ years (negotiable) Base Rental Rate Space: $24.00 PSF NNN NNN Charge (2015 Est): $11.00 PSF/Year (Landlord paying electric!) Parking Ratio: 4 per 1,000 SF • • • •

Property Data/Attributes

5005 S. Mason Road, Katy, TX 77450 Newly Constructed 2010 Two Story Building Easy access to Grand Parkway and West Park Tollway Area Demographics

2013 Total Pop.*

FOR LEASE

2013 Avg. HH Income*

1-mile

3-mile

5-mile

11.857

105.681

202.320

$199,351

$132,960

$124,086

*Demographic Data Source: ESRI 2015 Forecast

Contact: Roxanne Edmond January 2016 281.391.9252 Roxanne@wolverinepm.net

civil fair play

How Consistent & Fair is the Texas Property Tax Code? BY JANIS ARNOLD

A comment made to REDNews’ publisher by Robert Coe, a local appraiser who specializes in low income housing tax credit property appraisals* regarding his concerns that those properties might be in jeopardy of being taxed out of existence led us to an investigation of the overall Texas Property Appraisal Tax Process.

Interview with Paul Bettencourt December 8th, 2015

SEN.PAUL BETTENCOURT

r-houston – chair

n order to fully understand the process and issues, we attempted to contact numerous independent appraisers, appraisal district representatives and governmental officials.

Many thanks to Ron Little, MAI, founder of National Realty Consultants, and Texas District 7 Senator Paul Bettencourt, for taking the time to enlighten us to the following issues:

• Property taxes are going up at an

average rate of 6 times faster than tax payers' income goes up

• The Texas Property Tax Code is fraught with inconsistencies regarding (a) how the property tax rates are determined and (b)who is setting the rates

• Appraisal District Property valuations are not being determined with the same methodology that the private industry uses

• An Appraisal District Review Board

does not operate independently of its Appraisal District

There appears to be widespread concern about these issues since recently Texas voters overwhelmingly passed Constitutional Amendment Proposition 1 for meaningful tax relief to property owners. 14

January 2016

This past November Texas Lt. Governor Dan Patrick announced the appointment of seven Senate members to a Select Committee on Property Tax Reform and Relief. The Select Committee on Property Tax Reform and Relief will travel the

Property taxes are going up at an average rate of 6 times faster than tax payers' income goes up. state holding public hearings and look for ways to improve the property tax process as well as reduce the burden on property owners. This select committee will report their recommendations to the Finance Committee prior to the 2017 85th Legislative Session. The Select Committee on Property Tax Reform and Relief chairman, Sen. Paul Bettencourt, CEO of Bettencourt Tax Advisors, and former Harris County Tax Assessor-Collector, spoke with REDNews about his group's plans to address tax reform and relief across the state:

Bottom line: you don’t want people taxed out of town.

“My committee is mandated to reform the appraisal process and to provide property tax relief. We’re looking to make tax rates and appraisals more consistent across the state. Right now there are 4,000 plus taxing jurisdictions that set the rates. We had an initial hearing in Austin where the Travis County Central Appraisal District presented their current appraisal/tax process as it exists. Next we’ll be in San Antonio, either on January 27th or 28th. Our goal is to slow the rate of property tax bills and to provide greater transparency to taxpayers in the appraisal process.”

Currently, the property tax code is riddled with inconsistencies. One thing that we do know is that values are up. They’ve been up, and they’ve been up substantially this year. My guess would be about 10% statewide. At the same time there is inconsistency on how the taxing jurisdictions set their rates. Our committee wants to make sure that these taxing districts are taking into account the taxpayers' ability to pay. When values go up, they should be lowering the rate substantially down to the effective tax rate. We’re planning to address these and other issues, particularly where some districts are requiring such a high level of signatures in the cities and counties that it is impossible

for registered voters to call for an election on the tax increases they are seeing. For example, there is no way that Harris County can get 200,000 people to sign a petition in 90 days. This isn’t what is required of the school districts, and the cities and counties shouldn’t be doing it either. Speaking of the school districts, the public knows this as Robin Hood, which I call "robbing the hood" because as local taxpayers pay more, the state generally pays less to their school districts. Over time, as values increase the state share of public education goes down. Now there is a major Supreme Court ruling that everyone’s waiting on, which will tell us about the adequacy and efficiency within the public school system. That should be coming out sometime in 2015, so we should know all this by the time we get to the next session.

Bottom line: you don’t want people taxed out of town. We see the problem with the way the current property tax code works as this: as values go up, tax rates don’t come down fast enough. For the average homeowner, their property tax bill is going up six times faster than their income. It is the fact that statewide tax revenues have shown astonishing increases, with the average tax revenues having doubled in the past eleven years. As you know, people’s income doesn’t typically double in eleven years, so the way we’re going in this state, we’re leaving home and business owners behind.

Another significant concern and an area we plan to address is the fact that central appraisal district appraisers are not required to be trained in the same methodology that the private industry uses. And yet another concern is this: The Appraisal Review Boards need to be fully independent of their appraisal districts. Right now they’re housed, paid, and trained by the local appraisal districts. In effect, they are not independent at all.

Select Committee Appointees

SEN. BRANDON CREIGHTON

r-conroe

SEN. KELLY HANCOCK

r-forth worth

SEN. EDDIE LUCIO JR.

d-weslaco

SEN. CHARLES PERRY

r-lubbock

SEN. VAN TAYLOR

r-plano

REDNews will be following up with Senator Bettencourt during the first quarter of 2016 and will bring you updates here. ● *For detailed information from Robert Coe and Ron Little regarding low income property tax credit projects, log on to www.rednews. com/wp-content/uploads/2014/03/RednewsArticles-final.pdf

SEN. CARLOS URESTI

d-san antonio

January 2016 Sen. Paul Bettencourt

What do Lobbyists & CRE Have in Common?

Leslie Pool

Stuart Sampley

The definition of lobbying is undergoing a significant rewrite in the City of Austin and it could have a huge impact on the commercial real estate industry throughout the state of Texas. BY BRANDI SMITH

The change got its start back in January 2014 when Austin’s new city council members took their seats. For the first time in the Texas capital’s history, the council was comprised of ten members voted on by district instead of at large, as well as the mayor.

“Basically what happened is they took City Hall and dumped it upside down,” says Austin architect Stuart Sampley, who is also president of the city’s AIA chapter. “It's a brave new world and people are still trying to figure out what the hell is going on.” One of the big issues facing the council is lobbying reforms for the city. In August, District 7 council member Leslie Pool sponsored a resolution written by attorney Fred Lewis that overhauls Austin’s Lobbying Registration Ordinance.

“The changes that are being proposed to the existing lobby ordinance are substantial and have created significant concern among professional groups, not only in Austin but in other cities as well, as Austin is often the leader starting trends that other cities follow,” said attorney Pamela Madere, director of Coats Rose’s Land Use & Real Estate section.

“It is a very hot topic in this town through other interest groups that want more transparency 16

January 2016

Pamela Madere

and want more accountability,” echoed Sampley. However, Sampley and others were concerned by the wide net the ordinance cast, which would have labeled many in the development community “lobbyists.”

“Under the current proposal, if you have more than 26 hours of discussions [per quarter] with a city employee about a particular project then you may be considered a lobbyist,” Madere explained. Along with that label comes a slew of other requirements, including registration and financial reporting.

Sampley says it’s not at all uncommon for architects and other developers to spend more than 26 hours interacting with city staff on a variety of tasks.

“Clearly by what we're reading here is that the work that we do on a day-to-day basis—study stuff, permitting, etc.—would be considered lobbying and we didn’t really feel like we are lobbyists,” said Sampley. In addition to all the registration and reporting requirements associated with the ‘lobbyist’ label, it would also prevent many of the most knowledgeable experts from weighing in on municipal projects.

“Architects and engineers would not be permitted to sit on boards and commissions that are considering site plans, preliminary plans and important development documents,” said Madere.

“You may think that my proposal will change the way our development community interfaces with the Council, and there is nothing in my proposal that does that,” Pool told the Austin Monitor in November. “We are simply requiring them to register.” In response to the resolution, an 11-member coalition formed to represent Austin’s development community with Sampley as the leader.

“We're not against transparency, we're not against an open government law, we're not against any of that stuff,” Sampley insisted. “But we are against our day-to-day activities to show compliance in the drawings being considered lobbying.”

Pool’s resolution was reviewed by the City Council Audit and Finance Committee, which passed it on to the Ethics Review Commission. In November, commissioners unanimously voted to recommend the resolution to city council. After a couple months of back-and-forth conversations,

Sampley’s group sent a letter to the council, addressing its concerns, saying in part:

“Hundreds of design professionals, craftsmen, and administrators must interact and communicate with City staff in order to do their job, as it is nearly impossible to take a public (City, County, State, or Federal) or private project through the City of Austin permitting system without speaking to City staff at length. Having those professionals register as lobbyists would not provide any community benefits or more transparency. In fact, such information about who is working with city staff on a project is readily available to the public on the city’s AMANDA database website.”

The letter led to increased communication between the council and development professionals, which culminated in what Sampley considers forward progress: the addition of his group’s proposed language that creates an exclusion for many development professionals. A victory to be sure, but Sampley says there’s a long road ahead as the resolution works its way to becoming an ordinance. Cautioned Sampley: “This is the very beginning of the process.” ●

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Banking on the Fed: What December’s Interest Rate Hike Means for Texas For the first time since June 2006, the Federal Reserve board voted to raise its key rate by a quarter-point to a range of .25 percent to .5 percent. The announcement made on Dec. 16 is something the Fed has hinted at since March, causing months of speculation about the impact of an increase. BY BRANDI SMITH

“Nearly seven years ago, the Fed put its benchmark interest rate close to zero as a way to prop up the economy,” said John T. Fenoglio, CBRE Capital Markets’ Houston-based executive vice president. In fact, Fed staff concluded that the equilibrium real interest rate, which is the rate adjusted for inflation, had dipped into negative territory following the financial crisis. Only recently has it risen to zero. In the most basic terms, that means the economy was so weak that interest rates had to be lower than inflation to incentivize households and businesses to spend and borrow.

“The reason they haven't raised it before when they thought they would is just that it seems that any time there's some growth in the economy, it seems measured,” said an experienced lender in the Texas market. 18

January 2016

Positive economic news of late, including low unemployment numbers and higher wages, helped push the board toward its decision. Inflation was also an important factor, as it had reached the central bank’s 2 percent target.

Because the hike has been anticipated for months, it’s unlikely to have a significant impact on the commercial real estate industry here in Texas, though it will certainly be a topic of discussion. “I think it's just been such a long time since we actually had to make that at the forefront of how we made decisions,” said the Texas lender. “It hasn't been at the forefront of anyone's mind. It's been part of the decision, but not the leading top decision.”

“Rates are near to historical lows and most forecasters do not see them increasing to levels that

would harm or curtail Texas real estate prices,” Fenoglio said.

However, the Fed’s next moves will be watched closely as the frequency and intensity of any future hikes could significantly slow down market and economic performance.

“If we got into a scenario where the rates were being raised every time the Fed met, and they were taking a pretty good clip up, then that would move further up their list of things they wanted to consider,” the Texas lender advised, speculating whether developers would want to move forward with long-term projects. The situation actually all depends on how the economy shakes up and adapts with this and any future hikes. “If interest rates increase measurably in the long run, we could see price declines but we could also see higher rents and

pricing would remain unchanged and possibly go higher if rent increases exceed interest rate and cap rate increases,” said Fenoglio.

Because the hike has been anticipated for months, it’s unlikely to have a significant impact on the commercial real estate industry here in Texas. In truth, only time will tell how individual markets react to the change in the long term. Said Fenoglio: “It’s anybody’s guess.” ●

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January 2016

ray’s buzz

Interview with John Fenoglio BY RAY HANKAMER rhankamer@gmail.com

John, thanks for spending time with REDNews. Our readership is of all ages, and most are in Commercial Real Estate (CRE) in one way or another. Will you tell us how you got started in the lending business, and what your educational background was that prepared you for it?

I received a BA in economics from the University of Texas at Austin in 1970, worked at Texas Commerce Bank for a year and then went to TCU and received an MBA. After graduating in 1972, I joined American General Investment Corp. ( now AIG) and have been in the commercial real estate finance business ever since. Did you specialize in your career in any of the segments of CRE lending, or did you provide financing for all of them?

I have financed all property types (including a turtle farm!).

How did the sources of CRE debt differ when you were starting out from what they are now? Have the new providers led to a healthier market around the country with less over-building, since information is more readily available in this day and age?

The sources of capital have varied over the years but the con20

January 2016

stant recurring sources have been the banks and insurance companies. When I entered the business, insurance companies dominated the landscape with regard to permanent mortgages and the banks were predominately construction lenders. New sources have come and gone throughout the various cycles including the mortgage REITs in the 1970s, the S&L’s in the 1980s, the commercial mortgage back security(CMBS) lenders in the 1990s, and the rise of the Agency lenders( Fannie Mae and Freddie Mac) in the late 1990s through today. The landscape today includes a mix of 1) banks doing construction, floating and fixed-rate term loans, 2) insurance companies mainly funding fixedrate mortgages but also doing floating rate loans and construction to perm loans, 3) debt funds providing bridge and construction loans, 4) mortgage REITs doing bridge and renovation loans, 5) Fannie and Freddie doing both fixed and floating rate debt on multifamily properties, 6) CMBS lenders (who primarily ceased to exist in 2009 but have made a strong come back) doing fixed and floating rate debt, 7) pension funds doing fixed and floating rate debt and 8) various private lenders doing higher yield and often “hard money” loans on

land and transitional properties. There are plenty of commercial real estate debt capital sources at work today.

I would say that there is far more discipline today in all commercial real estate debt, especially in construction financing where significant equity, credit worthy guarantors and sponsorship expertise is usually required. Every cycle has seen a somewhat too aggressive construction source of capital that has tended to oversupply the market and for the most part that is not happening today. I think the lessons of the 2008 meltdown remain embedded in the collective lending memory and whereas lending volumes are increasing, the discipline is still at work.

What about the sources of equity—are they different from what they were way back when?

When I entered the business in the early 1970s, one of the first transactions I worked on was a joint venture between an insurance company and a Houston developer for a CBD office building. Insurance companies dominated the institutional equity landscape and private equity from individuals/family offices was the other

John Fenoglio, Executive VP, CBRE’s Debt & Structured Finance Group

primary source. Syndicated equity/ limited partnerships were gaining momentum especially for land acquisitions in Houston. The inflation of the late 1970s and early 1980s along with the steep rise in interest rates (Prime went to 21%) opened the door for pension funds and their advisors and equity REITs who were seeking investments that were inflation adjusted and commercial real estate became a number one alternative asset class. 1981 also saw the tax act that created accelerated depreciation for commercial real estate and unleashed the tax oriented syndications focusing on tax shelters. At the same time the S&Ls that had been caught with high rate deposits(liabilities) and assets primarily consisting of long term fixed rate loans at lower rates (disintermediation) were deregulated and some go- go entrepreneurs took the reins and started offering participating mortgages that had equity like features for new construction. International equity began to surface about this time as capital flight from Mexico(peso devaluation) and Italy( fear of communist control) along with the mid east accumulation of capital with the run up of oil prices in the 1970’s, combined for new foreign sources of equity. In

ray’s buzz the late 1970s and early 1980s Houston, with its booming energy economy, was a unique beacon for development as the rest of the US was in a recession and all of these forces were unleashed. The banks were also looking for construction opportunities and development exploded with the harmonic convergence of deregulation of the S&Ls, the 1981 tax act, new foreign capital, active pension funds and equity REITs and hungry banks focusing on Houston as the rest of the US was suffering economically. We doubled the amount of office space in the city in the span of four years and overbuilt apartments, condos, hotels, retail and industrial. Oil prices crashed in November 1982 (remember that date) and Houston became a four letter word to the national real estate equity market as values crashed, banks and S&Ls went broke and the local economy shed several hundred thousand jobs from 1982 – 1987. The 1986 tax act ended the tax shelter business and the party was over. Private equity from all over the world started acquiring assets in Houston in the late 1980s and early 1990s at bargain basement prices from the RTC and FDIC. A few contrarian institutional equity sources showed up in the early 1990s to acquire/ joint venture existing assets but private equity was the dominate source. With the stabilization of economy in the mid 1990s, insurance companies, equity REITs and pension funds began to “stick their toes in the water” in Houston. Many institutional sources had long memories and would not show up again until the late to mid 2000s as the economy started to heat up with increasing energy prices.

From 2005 – 2014 Houston became a poster child of increasing values( with exception of the 2008-2010 Great Recession) and equity has poured in from pension funds, insurance companies, private and public equity REITs, private equity funds, private syndications/partnerships, foreign capital and private investors/family offices. Many

of these sources have moved to the sidelines with the rapid decline in oil prices. Opportunity equity from institutional and private sources is circling the city thinking the 1980’s will repeat itself but the capitalization of commercial real estate since 2004 with significant equity investments and the lack of overbuilding will not present a similar scenario. John, tell us a little about how you started HFF, and then how you went about going national. Did you roll up a bunch of mortgage banker shops across the country into one organization?

Remember that November, 1982 date? That is the month HF( the other F was added later) was started By Hal Holliday and myself. We had headed the commercial finance group at an old line Houston mortgage bank that was sold to a new S&L. Many of our insurance company lenders were not excited about being represented by a S&L and reached out to us with support if we were to do something else. We decided to move forward with a new firm and named it Holliday Fenoglio & Co. (not an Italian travel agency!). We began with four of us and by 1984 had expanded to 20 employees and bought a small office building to house our expanding firm. In 1984 we opened an Austin office, closed it in 1986 as the Teas economy plummeted and opened a South Florida office in 1987. In 1990 we opened a New York office and in 1992 opened a Dallas office. All of this growth was done by hiring key individuals looking for growth opportunities. In 1994 it was apparent that the new CMBS industry was a major source of capital and we did not have the balance sheet to fully participate in the securitization of the loans. We also saw numerous opportunities to expand our platform but were limited by our debt adverse capital structure. We had been approached by several firms that wanted to acquire us and in early 1994 we decided to seek a partner/ buyer who had the capital for our expansion. We sold to AM-

RESCO in August in 1994 and grew the platform from 4 offices to 29 offices by 1998 by way of acquiring two firms and hiring key people/ teams in other cities. By midyear 1998 we were the largest commercial banking company in the US. How did your exit strategy from that company work out, and what are you doing now?

I left in July 1998 , took a year off and started a Houston based mortgage banking firm in 2000 with several of my former associates. We sold to a bank owned mortgage banking firm at the end of 2008. In 2012 CBRE offered us a great opportunity and 5 of us joined the capital markets team at CBRE. We have a great team of professionals and are active in all aspects of debt and structured finance.

John, can you give some bits of advice to young people just out of school who want to get started in CRE lending? What pathway would you suggest them to take, or are there several? For young people just out of school I would advise them to search long and hard as the commercial real estate lending industry is relatively small. Houston has always been a net importer of capital and has never been a major lending center so they may have to reach out to firms in New York or other cities with a concentration of lenders. Typical entry level positions are usually filled by graduates with real estate degrees or experience in complimentary industries such as due diligence firms, appraisal firms, commercial real estate brokerage firms and other lenders such as insurance companies or banks. ●

sortiz13@me.com

January 2016

Cheers to the New Year! May it be a Successful One. Thank You For Your Continued Support.

events social bulletin

Scoop

The following pages contain a calendar of Texas CRE events, networking photos and deals/announcements. For more of the above, log on to REDNews.com. We update CRE news and events daily!

January 2016

events

CENTRAL SOUTH TEXAS

January 2016 Calendar The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

AWARDS

CREW AUSTIN

ULI AUSTIN

2016 impact awards ceremony & reception Jan 13 5:30pm–7:30pm.

austin.uli.org/events

REC SAN ANTONIO

phillip m. barshop founder's award

Jan 27 11:30am–1:30pm.

recsanantonio.com/luncheon.php

EDUCATION

crew network winter leadership summit in san antonio

Jan 28–29 Ensuring workplace and employee health and safety are issues at the center stage of today's property industry. As a property professional, this course will help you develop and manage proactive environmental/occupational health and safety programs, comply with regulatory standards and guidelines, and assess when to obtain technical assistance. All Day.

crewaustin.com/web227/ eventscalendar/calendar.asp

BOMA AUSTIN

bomi environmental health and safety issues

Jan 14 Ensuring workplace and employee health and safety are issues at the center stage of today's property industry. As a property professional, this course will help you develop and manage proactive environmental/occupational health and safety programs, comply with regulatory standards and guidelines, and assess when to obtain technical assistance. 6pm–9pm.

bomaaustin.org/events/event_list.asp

LUNCHEON CREW SAN ANTONIO

january luncheon

Jan 12 Please join Scott Joslove of the Texas Hotel & Lodging Association. 11:30am–1pm.

crew-sanantonio.org/events.aspx IREM AUSTIN

monthly luncheon

Jan 12 Please join Neal Spelce—Your Authority on Austin™—as he gives sight into what is happening now and for the future of the Austinmetro area. 11:30am–1pm.

iremaustin.org/events/listing.phx IREM SAN ANTONIO

chapter luncheon

Jan 14 Please join IREM San Antonio to hear Dr. Lloyd Potter, the State Demographer speak about Texas demographic trends, characteristics, and projections. 11:30am–1pm.

iremsanantonio.org/events/listing.phx IREM AUSTIN

key players luncheon (by invitation only) Jan 15 11:30am–1pm. Dr. Lloyd Potter

January 2016

ULI SAN ANTONIO

annual real estate outlook luncheon 2016

Jan 20 ULI San Antonio presents its annual real estate trends and forecast luncheon, featuring insights from leading experts both nationally and locally. The event will again feature a presentation from Mitch Roschelle, Partner & U.S. Real Estate Advisory Practice Leader for PwC, on the Emerging Trends in Real Estate 2016 report – a publication from PwC and ULI – as well as a session on the outlook for San Antonio area real estate including a panel of leading area real estate investors and experts. 11:30am–1:30pm.

sanantonio.uli.org/events BOMA AUSTIN

monthly member luncheon Jan 21 11:30am–1pm.

CTCAR

networking luncheon & presentation "interest rate hike" Jan 21 11:30am–1pm.

ctcaronline.com/events/event_list.asp CCIM CENTRAL TEXAS

networking luncheon & presentation Jan 26 11:30am–1pm.

ctcaronline.com/events/event_list.asp

MEETING ULI AUSTIN

program committee meeting Jan 3 11:30am–1pm.

IREM AUSTIN

board & committee chair meeting Jan 6 11:30am–1pm.

Mitch Roschelle

IREM SAN ANTONIO

board & committee chair meeting Jan 7 11:30am–1pm.

ULI AUSTIN

product council | housing and community development Jan 7 7:30am–9am.

RECA

january ideas forum Jan 13 11:15am–1pm.

reca.org/events CTCAR

property information exchange "kickstart 2016"

Jan 14 Join CTCAR to hear Kyle T. Schulz, the Director of Economic Development for the Austin Chamber of Commerce, talk about what's coming to Austin in 2016. 7:30am–9am.

ULI AUSTIN

young leaders committee meeting Jan 20 7:30am–9am.

ULI AUSTIN

management committee meeting Jan 21 11:30am–1pm.

January 2016

social

CENTRAL SOUTH TEXAS

CTCAR & CCIM HOLIDAY PARTY

From Top: Troy Becker, Caitlin Becker, Teresa Person, and Sonne Person. Dale Glover and Eric Layne. Paul Ott, DeLea Becker, and Brently Brinegar. Guy Perry, Gwendolyn Dayton, and Brian Pitman.

CREW AUSTIN

HOLIDAY PARTY AT THE HIGHBALL From Top: CREW Austin President Yvonne Heerema and Amy Ables, our Administrator. Deanna Bounds, Stephanie, Amy Linton and Jennifer Carter. Rosalie Keszler, Rhonda West, Vicki McDonald and Jeff Needles.

RECA

AWARDS CEREMONY From Top: Emily Jung, Taylor Steed, and Ryan Berger. Ray Wilkerson and Karen Wilkerson. Some lovely ladies enjoying the ceremony. Speaker Gary Keller.

January 2016

events

NORTH TEXAS

January 2016 Calendar The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

AWARDS

BISNOW

NTCAR

stemmons service award

Jan 28 The Stemmons Service Award is NTCAR’s premier event and is presented annually to honor a member of the brokerage community who best exemplies the highest standards of a commercial real estate professional. 6pm–9pm.

ntcar.org/events BOMA DALLAS

Awards banquet & ceremony Jan 23 6pm–10pm.

bomadallas.org/calendar_list.asp

BREAKFAST ULI NORTH TEXAS

uli breakfast forum: the big squeeze – housing affordability Jan 14 7:30am–9am.

northtexas.uli.org/events

EDUCATION BOMA DALLAS

seminar: women connected by cre Jan 14 7am–9:30am.

APA TEXAS

focus north texas planning symposium

Jan 15 This year’s “focus” highlights some of the opportunities and challenges found in a wide range of city types, from small/rural communities to large/urban cores. Keynote speaker is Michael Schubert, principal of Community Development Strategies, a consulting firm focused on neighborhood revitalization based in Chicago. 8am.

txplanning.org

January 2016

bisnow dallas state of the market Jan 19 7:30am–10:30am.

northtexas.uli.org/events BOMA DALLAS

csc & yp @ north texas food bank Jan 19 1pm–3:30am.

RECGFW

2016 tarrant county cre forecast

CREW DALLAS

monthly luncheon Jan 20 11:30am–1pm.

crew-dallas.org/events.aspx

MEETING

ULI NORTH TEXAS

uli fall meeting steering committee kickoff (invitation only) Jan 26 TBA

BOMA FORT WORTH

board meeting

executive council meeting

Jan 27 12pm.

NTCAR

SOCIAL

IREM DALLAS Jan 6 12pm.

Jan 21 7:30am–10:30am.

BOMA FORT WORTH

recouncilgfw.com

brokers forecast – 1st quarter membership meeting

ICSC

ntcar.org/events

CREW FORT WORTH

asset management & property operations symposium

Jan 25 Sarah Vasquez, EVP of Management and Operations with The Howard Hughes Corporation will moderate a discussion with some of the area’s top property and asset managers covering some of today’s operational issues they face – from what happens after the acquisition to property taxes and everything in between. All Day.

icsc.org/events-and-programs

Jan 7 7am–9am.

BOMA FORT WORTH

committee meeting: membership Jan 13 12pm.

BOMA FORT WORTH

csc meeting

Jan 21 11:30am.

january luncheon: southlake developments Jan 6 11:30am–1:30pm.

crewfw.org/meetinginfo.php IREM DALLAS

january luncheon

Jan 14 11:30am–1:30pm.

irem-dallas.org/events

bomafortworth.org/events

Jan 27 7:30am–8:30am.

TREC

recouncil.com

CREW FORT WORTH

Jan 26 In partnership with Greater Fort Worth Affiliate of Susan G. Komen for the Cure®, 50% of all general admission and rodeo ticket sales from the day’s events will be donated to this worthy cause. 7pm.

Jan 25 All Day.

Jan 28 11am.

LUNCHEON

crew night at fort worth stock show & rodeo

ULI NORTH TEXAS

texas retail forecast

annual membership meeting

bomafortworth.org/events

Jan 27 5:30pm–8:30pm.

ICSC

BOMA FORT WORTH

lunch & learn: fw bbct

winter extravaganza 2016

Jan 26 11:30am–1pm.

uli new member coffee

CCIM

From Top: Debi Carter, CCIM and Kimberly Kramer smile with one of the children of Family Gateway.

NORTH TEXAS

Joe Comparin, CCIM helps a child decorate a Christmas Tree during the Holiday Volunteer Event. The North Texas CCIM Chapter had a great time making Christmas crafts and decorating Christmas trees with the children at Family Gateway for the Holiday Volunteer Event.

BOMA FORT WORTH

COATS FOR KIDS DELIVERY From Top: Enoying time with Santa Claus. Volunteers posing with Santa! Santa and his little helper.

CREW DALLAS

HOLIDAY AWARDS LUNCHEON From Top: Liz Trocchio with the Trocchio Advantage and Diana Bearden, with Strasburger and Price.

October 2015

social

January 2016

HOLIDAY VOLUNTEER EVENT

Lindsey Jamar Carroll, Outstanding New Member, with Republic Title; Shannon Whitehead, Most Valuable Player, with Colliers; Sharon Herrin; Lindsay Jones, representing Amery Bank, Career Advancement for Women-Corporate Category; Diana Bearden, one of three winners of Career Advancement for Women-Individual Category, with Strasburger and Price.

IREM DALLAS

SANTA FOR SENIORS Santa for Seniors was a huge success!

January 2016

events

SOUTHEAST TEXAS

January 2016 Calendar The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

BREAKFAST ACRP

breakfast meeting: using the rear-view mirror to look ahead at austin’s economy

Jan 22 Please join Neal Spelce—Your Authority on Austin™—as he gives sight into what is happening now and for the future of the Austinmetro area. 7am–8:30am.

iremaustin.org/events/listing.phx

EDUCATION BOMA HOUSTON

toby® judges workshop

Jan 6 Are you interested in judging The Outstanding Building of the Year® (TOBY) Awards, honoring the best of the best in commercial buildings, at the local, regional and/or international level? Then make sure to attend this workshop! 8am–10am.

web.houstonboma.org/events BOMA HOUSTON

rpa course – budgeting and accounting

Jan 25–28 In this course, you will have the opportunity to apply concepts within the real property and facilities context. You will follow the accounting process and creation of a budget from start to finish, learning valuable skills such as how

to interpret financial statements, annual reports, and statements of cash flows. You will also learn practical skills such as how to compile lease abstracts and prepare rent rolls. All Day.

LUNCHEON CREW HOUSTON

luncheon with julie kinzelman

Jan 6 Please join Julie Kinzelman, Principal at Kinzelman Art Consulting and Ray Simpson, Owner of Simpson Galleries, to discuss the importance and value of art in our workspaces. Artwork sets the tone and is the first impression of any building. 11:30am–1pm.

crewhouston.org/events.aspx CREN GULF COAST

monthly luncheon Jan 8 11am–1pm.

crengulfcoast.com/calendar.php CCIM HOUSTON

january luncheon Jan 8 11:30am–1pm.

ccimhouston.org/events IREM HOUSTON

january luncheon

Jan 8 Forecast 2016: Is There A Storm Brewing? Join speaker Dr. Ted C. Jones—Chief Economist and Senior Vice President for Stewart Title Guaranty Company—as he talks about 2016's real estate and economic outlooks. 11:30am–1pm.

iremhouston.org/calendar BACREN

monthly luncheon Jan 21 11am–1:30pm.

bacren.com HRBC

monthly luncheon Jan 21 11am–1:30pm.

Neal Spelce 28

houstonrealty.org/events.htm January 2016

MEETING CREN GULF COAST

marketing session Jan 15 7:15am–9am.

FBSCR

monthly 3 tuesday meeting rd

Jan 19 8am–9am.

fbscr.com

GREATER HOUSTON PARTNERSHIP

2016 annual meeting

Jan 25 The Partnership kicks off 2016 with the Annual Meeting featuring spotlight addresses from incoming Partnership Chair Jamey Rootes, President Houston Texans, along with Partnership President and CEO, Bob Harvey. 11:45am–1:30pm.

events.houston.org/?id=247 GREATER HOUSTON PARTNERSHIP

member orientation meeting

Jan 28 Join GHP to learn about the opportunities and benefits of Partnership membership. This meeting is designed for both members and non-members looking to learn more about expanding their involvement with the Partnership and the Houston business community. 3pm–4:30pm.

BOMA HOUSTON

boma International winter business meeting & national issue conference washington dc

Julie Kinzelman

SOCIAL BOMA HOUSTON

early bird booth sales boma expo Jan 5–12 8am–12pm.

ULI HOUSTON

development of distinction tour

Jan 7 Join ULI Houston for a behindthe-scenes tour of a few projects that have been chosen as finalists for the 9th Annual Development of Distinction Awards. Project include: Navigation Esplanade, JW Marriott, and Heights Clock Tower. 11am–2pm.

houston.uli.org/events BOMA HOUSTON

toby® awards gala Jan 22 6:30pm–9:30pm.

ULI HOUSTON

development of distinction awards

Jan 7 The ULI Houston Development of Distinction Awards define the standard for excellence in the practice of real estate development in the Houston region. The Award recognizes developments and public open spaces that exemplify best practices in design, construction, economic viability, healthy places, marketing and management. 11am–2pm.

January 2016

social

SOUTHEAST TEXAS O'CONNOR & ASSOCIATES HOLIDAY PARTY

Lauren Sudhakar, Kayla Ashby, Lisa Stuckett, and Chelsea Johnson. Some of the Holiday Party Committee. Lejaurean Hailey, Anthony Whorton, and Roderick Woodworth, Chelsea Johnson, Samantha Goff and Richy Hem. Photo booth fun!

IREM

HOLIDAY PARTY

Robert Bowman and his wife, John Sexton and his wife.

From Top: Laura Krupowicz, CPM and Erin Horn with Brookfield take time out for a photo op with Lacey Withers of ABM Janitorial. Our guests really embraced our Roaring 20’s theme as you can see!

October 2015

From Top: Mauro Rodriguez (O’Connor Employee) and Kalon Coffey( party guest).

ACRP

HOLIDAY PARTY From the Bottom: Weldon Martin, Amy Nicholson, Kristen Rogers, Charity Mayo, Anya Marmuscak, Raymond Romero.

CCIM GULF COAST

ACRP memebers enjoying the evening.

HOLIDAY PARTY

O'CONNOR & ASSOCIATES

RETAIL FORECAST LUNCHEON From Top: Speaker David Luther and Pat O'Connor. Getting settled in before the presentation.

January 2016

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CENTRAL TEXAS

Austin/San Antonio Areas

HOTEL CONSTRUCTION

Pathfinder Development is building a 108-suite Residence Inn by Marriott on 5.2 acres at 6000 W. U.S. Highway 290. The hotel is scheduled to open in October 2016.

INDUSTRIAL CONSTRUCTION

CONVERSE RETAIL CONSTRUCTION

The City of Converse has added more than 400 residential units this year, posts an average household income of more than $75,000, and between 1990 and 2020, expects to see population growth hit 165 percent. In a study commissioned by the city, there is about $732 million in unmet retail demand in Converse. “Converse is reinventing itself, reinvesting in itself and proving it’s worth investing in,” Kate Silvas, the executive director of Converse’s Economic Development Corporation, said. “There is $40 million in infrastructure recently completed or in the pipeline, and we’re aggressively pursuing new projects.”

Savills Studley has named John Scoblick as corporate managing director and Alecia Burdick as the associate director of its new Austin office. CCIM has appointed Nick Nelson, partner at Longbow Real Estate Group, as chair of CCIM Institute Networking Committee. He is also the 2015 Central Texas CCIM chapter president. Jim Rosten, president of Property Services at Kennedy Wilson, has announced the appointment of James Cain, who joins the company’s property management division as regional director. Cain joins Kennedy Wilson from Pennybacker Capital.

AUSTIN

January 2016

CBRE broke ground on Expo 13, a 136,000 sq. ft. industrial project, located within the Expo Business Park at 6301 E. Stassney Ln. Mark Emerick, John Barksdale, A. Ace Schlameus and Darryl Dadon will be handling the leasing.

MULTI-FAMILY CONSTRUCTION

Developers of The Independent, the under-construction residential building slated to be the city’s tallest structure, have completed a 1.7 acre land purchase located at the northeast corner of West Third Street and West Avenue, marking the final step in its predevelopment process. The Independent includes key community benefits such as a public plaza that connects the 3rd Street footbridge to West Avenue, an easement and trail improvements along Shoal Creek, and voluntary contributions of approximately $2.7 million to the city of Austin’s Affordable Houston Trust Fund and $1 million for city infrastructure.

OFFICE LEASE

Pillsbury Winthrop Shaw Pittman LLP recently expanded into 14,000 sq. ft. at the Frost Bank Tower, a 33-story office building at 401 Congress Ave. Travis Dunaway and Anne Swift, Endeavor Real Estate Group, represented the landlord in the transaction.

OFFICE LEASE

Main Street Hub signed a 47,000 sq. ft. lease at One Congress Plaza, 111 Congress Ave. Main Street Hub will be taking space on the 12th and 13th floors in 1st quarter 2016. Mark Miller and Andy Smith, Parkway Properties represented the building owner and Avila Commercial represented Main Street Hub.

OFFICE LEASE

Natera, Inc, a genetic testing company, will open a 93,973 sq. ft. office in Parmer 3.2, located at 13011 McCallen Pass Dr. Mark Emerick and John Barksdale, CBRE, represented the Landlord, Karlin Real Estate.

OFFICE SALE

Menlo Equities purchased 10-building Amber Oaks Corporate Center, a 70-acre office park located near Lakeline Mall for an undisclosed price. HFF in Dallas brokered both sides of the Amber Glen deal, but did not disclose the seller.

OFFICE SALE

Accesso Partners has purchased 7700 Parmer Ln. technology office campus from Spear Street Capital. The 913,000 sq. ft., fourbuilding campus is 94% leased. 7700 Parmer offers on-site access to an auditorium and a full-service cafeteria, baseball field, basketball courts, soccer field, volleyball court and a daycare service.

RETAIL SUBLEASE

Zeep signed a 10,343sq. ft. sublet lease in the two-story, 73,686 sq. ft. retail building in the Hill Country Galleria. Kevin Grander and matt Frizzell of Peloton Commerical Real Estate represented the sublessor.

STUDENT-HOUSING DEVELOPMENT

Johnson Trube & Associates is moving forward with The Corner, a class A student-housing development located at 2508 San Gabriel St. The 8-story project will feature 62 units with a mix of 2 to 5 bedroom apartments and is scheduled to open fall 2016.

VACANT LAND SALE

Generational Commercial Properties and HTZ Investments has purchased a 34,000 sq. ft. site at 801 Barton Springs Road. AQUILA Commercial will lease the new building, planned to consist of 90,500 sq. ft. of office and 1800 sq. ft. of retail. ‘801 Barton Springs, when complete, will be the one of the most technologically advanced buildings in Austin. Rob Wendt, Centric Commercial, represented the seller and Reagan Smith with SRI Commercial represented the buyer.

ELMENDORPH VACANT LAND SALE

Sugarloaf Properties, LP purchased 18 acres in Elmendorph,Texas from Alamo Junction Rail Park, LLC. John Turcotte with REOC San Antonio handled the transaction.

SAN ANTONIO INDUSTRIAL SALE

Cross Development CC LLC has purchased the 45,492 sq. ft. industrial property spanning 320 and 326 Lombrano St. along I-10 in Northwest San Antonio. Graystreet Lombrano LP, the seller of the property, was represented by REOC.

OFFICE/MEDICAL CONSTRUCTION

The Institute for Women’s Health will break ground on a 72,000 sq. ft., seven-story medical office building that will house a number of state-of-the-art multispecialty services and clinics. The facility will be constructed on a site leased from Methodist Healthcare System that is located on its South Texas Medical Center campus in Northwest San Antonio.

RETAIL DEVELOPMENT

Walmart is building four 24-hour Neighborhood Markets with gas stations and each store will cost about $6 million and span about 42,000 sq. ft.. The company has 29 stores in the area of which five are Neighborhood Markets. The new stores are located at 6938 Walzem Rd, 3847 Pleasanton Rd , 9005 FM 1560 North and 3418 East Southcross.

VACANT LAND SALE

Rosenstein Family Partnership has sold 6.54 acres located at 14603 Santa Gertrudis & Durham to the Vietnamese Martyrs Catholic Church. Jilla Sayyadi, Bradfield Properties represented the seller and Steven Rosser, DH Realty Partners, Inc., represented the buyers

VACANT LAND SALE

The Kalikow Group, on behalf of KEP Luckey Ranch Global Associates has sold a 70acre parcel at the masterplanned 2400 home, 610-acre Luckey Ranch. The buyer was undisclosed.

ARLINGTON MUTLI-FAMILY/RETAIL CONSTRUCTION

The 101 Center will be the first phase of Arlington City Center Development. The 244-unit residential building with 18,500 sq. ft. of street-level retail space is slated to deliver in June 2017 and is being constructed on a 2.35 acre site opposite Arlington City Hall approximately two blocks from the UT Arlington campus at 101 S. Center St.

CELINA VACANT LAND SALE

Hillwood Communities, a Perot company, has acquired 400 acres at the northeast corner of Coit Road and Frontier Parkway from the Wells family. Hillwood plans to break ground on the master-planned community of 1,250 single-family homes, multiple community parks and miles of trails, as well as space for new retail and restaurants in January 2016. The transaction was conducted between Hillwood Communities and Marianne Wells, Katherine Wells Power, Nancy Wells Warder and Sarah Wells Macias.

COPPELL INDUSTRIAL SALE

First Industrial Realty Trust has acquired a 79,877 sq. ft. industrial building at 750 Gateway Blvd. JLL’s Terry Darrow and Kurt Griffin represented the undisclosed seller.

DALLAS INDUSTRIAL SALE

Roeder Holdings LLC has purchased a 60,000 sq. ft. industrial building (Buckner Business Park II) at 3680 Dilido Road from IC Berkeley Partners III LP. Zane Marcell and Hahn Franklin-Mitchell of Younger Partners brokered the deal.

INDUSTRIAL SALE

Stonelake Capital Partners has acquired Turnpike Industrial Portfolio, a six-building industrial complex that sits along Interstate 30 at Cockrell Hill Land. Terms of the acquisition were undisclosed. CBRE Jack Fraker and his team represented the buyer and seller in the deal,

which closed Nov. 20. CBRE’s Steve Koldyke, Kacy Jones and Wilson Brown will lease the property.

OFFICE SALE

Buchanan Street Partners has acquired Tollway Plaza, an office property located at 15950 and 16000 North Dallas Parkway. Tollway Plaza consists of two, eight-story buildings totaling 370,073 sq. ft.. Tollway Plaza was 95% leased at the time of the sale. Buchanan Street Partners has also purchased Richardson Office Center in Far North Dallas and Granite Tower in Dallas.

MULTI-FAMILY CONSTRUCTION

High Street Residential has broken ground on M-Line Tower, a new 20-story, 262-unit, luxury residential tower located at 3200 McKinney Ave. Sitting on 1.28 acres at the corner of McKinney Ave. and Bowen St., M-Line Tower will have 1 and 2 bedroom units and a rooftop sky lounge with unobstructed views of downtown, Uptown and Turtle Creek.

DALLAS-FORT WORTH RETAIL SALE

Eleven retail centers, each anchored by a Tom Thumb, were purchased by an affiliate of Pine Tree Commercial Realty from an anonymous seller for an undisclosed price. CBRE Capital Markets’ National Retail Investment Group brokered the sale of the 756,865 sq. ft. grocery-anchored retail portfolio.

EULESS MULTI-FAMILY CONSTRUCTION

Toni Properties will break ground on Trinity Union, a 457-unit multifamily community in spring 2016. Located in northeast Tarrant County in the northeast quadrant of Cheek-Sparger Rd and Heritage Ave., the 43 acre deal was assembled by Venture Commercial Real Estate team: John Zikos, Ken Reimer, Christopher M. Gibbons and Cheryl Hill.

FARMERS BRANCH MIXED-USE CONSTRUCTION

Centurion American Development Group purchased a 370-acre tract and plans to build a $1 billion development that will include two hotels, 3,500 apartments, retail shopping, 800 single-family townhomes and residential villas, 180,000 sq. ft. of commercial space and a 48-acre office campus. The tract along LBJ Freeway at the southwest corner of Luna Road was owned by Gene Phillips and sold for $85 million.

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NORTH TEXAS

Dallas/Fort Worth Areas

FORT WORTH OFFICE MEDICAL SALE

Ridgeline Capital Partners has acquired Rosedale Medical Plaza, a 26,000 sq. ft. class A medical office building located at 1106 Alston Avenue in the Fort Worth Medical District. The seller was Alston Capital LLC.

FRISCO RETAIL SALE

Bill Morris of Morris Capital Partners LLC and Terry Syler of The Retail Connection have acquired Main Street Center, a 53,207 sq. ft. shopping center in Frisco.

MCKINNEY VACANT LAND SALE

Guggenheim Retail Real Estate Partners has acquired a 13.34acre tract at the southeast quadrant of Ridge Road and El Dorado Parkway. JLL’s Mark Newman and Alex Whitman represented the buyer. ACR Realty’s James Hankins represent the seller, ASG Eldorado Pavilion Ltd.

WESTLAKE VACANT LAND SALE & OFFICE LEASE

Charles Schwab is anticipated to buy 74 acres of land adjacent to the Circle T Ranch from Hillwood by the end of the year. The company has signed a five-year lease for 130,000 sq. ft. of office space at 2050 Roanoke Road in Westlake, which sits adjacent to the development site.

GRAND PRAIRIE INDUSTRIAL DEVELOPMENT

MOHR CAPITAL has started construction on the 430,000 sq. ft. 120/161 Crossing industrial project located at 4000 Matthew Road in Grand Prairie, Texas. The project is estimated for completion in Spring 2016 and is already in talks with prospective tenants.

Westmount Realty Capital has hired Brant Brown as their chief financial officer.

Fort Worth real estate veteran Jerry Bolz has partnered with Tim Bates to form a new full-service commercial real estate brokerage called Worth Commercial. Capital Group LLC has partnered with Alan Shor to invest in high-growth, specialty retail and multi-channel consumer companies. Commercial brokers Steve Fithian and James Blake have merged their Fort Worth Sperry Van Ness offices into Sperry Van Ness/Trinity Advisors.

January 2016

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SOUTHEAST TEXAS Houston Area

CYPRESS RETAIL CONSTRUCTION

Smithco Development, in partnership with Mischer Investments, is scheduled to complete a 51,000 sq. ft. retail center, Cypress Creek Plaza, located at the northeast corner of Fry Rd. and Tuckerton Rd. in the Bridgelands Retail submarket. The center includes three multi-tenant retail buildings and three pad sites and is anchored by a 100,000 sq. ft. H-E-B. Jim Smith of Smithco Development is handling leasing and the project architect is Identity Architects.

HOUSTON APARTMENT SALE

BELLAIRE MULTI-FAMILY CONSTRUCTION

The Blair House Apartments, 4139 Bellaire Blvd. in Southside Place, have been demolished to make way for 269 units to be known as Alexan Southside Place. The project is scheduled to be complete in Feb 2017 and is being built by TRAMMELL CROW RESIDENTIAL and BLUEROCK RESIDENT GROWTH REIT INC.

Transwestern has hired Kurt Emshousen as its Chief Administration Officer in Houston

Executive Director Ann Taylor is leaving Urban Land Institute to work for a Houston-based developer, Midway Cos. Midway Cos. is responsible for developments such as CityCentre and the Hotel Alessandra.

Venterra Realty acquired the 356-unit Calais at Courtlandt Square from Internacional Realty Management for an undisclosed amount. The mid-rise apartment complex is located at 3210 Louisiana St. The property will be rebranded as Calais Midtown.

APARTMENT SALE

Advenir purchased Milan, a 360-unit Class A multifamily community. The 367,305 sq. ft. complex is located at 13100W. Bellfort Ave. in the Sugarland/ MissouriCity submarket. David Mitchell, David Wylie, David Oelfke and Matt Rotan of ARA Newmark represented the selling venture.

OFFICE LEASE

Champions Pipe & Supply Inc, has leased 19,457 sq. ft. Class A office space in Four Greenspoint Place, located at 16925 Northchase Drive. Kevin Saxe, Jerrod McQuain and Nick Bockhorn of CBRE represented Champions in the transaction. Damon Thames, Richard Barbles and Tripp Pruet of Colvill Office Properties represented the landlord of the building, which is owned and managed by Hines.

OFFICE MEDICAL SALE

Ridgeline Capital Partners has acquired Bellaire Medical Plaza, a 60,000 sq. ft. class B medical office building located at 5420 Dashwood Drive in Houston. The seller was BS Dashwood LLC. The property is 98% leased.

OFFICE SALE

NAI Partners negotiated the

January 2016

sale of the 7207 Regency Square office building. The 52,000 square foot multi-tenant office property is currently approximately 10% occupied. Doug Pack of NAI Partners facilitated the negotiation between the seller, Malladi Partners, LLC and the buyer the Ardenwood Group.

OFFICE SUBLEASE

BEI Engineers has sublet 26,330 sq. ft. in the four-story office building located at 12301 Kurland Dr. in the Gulf Freeway/ Pasadena submarket. Courtney Walker and Louis Cushman of Cushman & Wakefield, Inc. represented the sublessor in the 3-year deal.

VACANT LAND SALE

Liberty DS Barker Cypress LLC has purchased 19.9 acres of land on the west side of Barker Cypress Road and will soon begin construction on a singlefamily development containing 115 lots. Dennis Johnston of Vista Brokerage Services represented Compressor Engineering Corporation, the seller, in this transaction.

VACANT LAND SALE

The Hanover Co. is under contract to purchase land south of its Hanover Post Oak luxury apartment tower off South Post Oak Lane. The deal is expected to close by mid-January. Hanover, which has a track record for developing high-end apartment projects, declined to comment about its plans for the land at this time.

KATY RETAIL LEASE

Freeway Properties has leased 20,000 sq. ft., part of phase II of their 718,255sq. ft. lifestyle center, located in Katy Ranch Crossing to Planet Fitness. Lilly Golden of Evergreen Commercial Realty represented Freeway Properties in the negotiations.

RETAIL SALE

InvenTrust purchased Price Plaza, a 205,813 sq. ft. open-air retail center located at 20200 Katy Freeway for $35.8 million. The center is 92% occupied with Ross Dress for Less, Jo-Ann Fabrics and Best-Buy serving as the anchor tenants.

PORT ARTHUR RETAIL RE-CONSTRUCTION

Kenneth Katz of Houston-based Baker Katz has renovated the former 90,000 sq. ft. Sutherlands Hardware located at the intersection of Highway 69 and F.M. 365 into a multi-tenant retail center. PetSmart, Hobby Lobby, and Party City are now open with Chipotle, Firehouse Subs and Gulfside Dental to open in early 2016.

STAFFORD INDUSTRIAL SALE

EDGE Realty Partners purchased a 192-acre site that sits south of I-69 and W. Airport Blvd in the Hwy 59/Hwy90 Industrial submarket from Texas Instruments. The site includes six buildings with 956,000 sq. ft. of vacant industrial space. EDGE Realty received approval from The Stafford City Council to redevelop the land for mixed-use development.

THE WOODLANDS HOTEL CONSTRUCTION

A 13-story 302-room Westin Hotel building under construction along The Woodlands Waterway is scheduled for completion in February 2016. The hotel is a Howard Hughes Corp. project and was first announced in summer 2014.

RETAIL/OFFICE CONSTRUCTION

Ed Wulfe, Wulfe & Co., has announced that East Shore Place, a two-story retail center will break ground in January and is expected to be completed by January 2017. East Shore Place will be located at Groganâ&#x20AC;&#x2122;s Mill Road near the intersection with Woodlands Parkway and will include 60,000 sq. ft. of retail and office space and 17,000sq. ft. of retail space on the first floor. The second story of the building will include 24,000 sq. ft. of office space. In addition, there will be a 9,000sq. ft. bank and a 7,500sq. ft. restaurant in the project.

classifieds & index

ADVERTISER INDEX A. A. Realty Company 35 Caldwell Companies 5 CBRE 1–SE Texas, 2, 36 CCIM Houston 17 Farrar Properties 19 Greenberg & Co. 13 Hankamer & Associates 21 Harry M. Green Interests 17 Levcor, Inc. 19

Mall of the Mainland 7 Mohr Capital 11 PegasusAblon 1–N Texas, 3 Phase Engineering, Inc. 22 Tarantino Properties Inc. 8, 9 Waller County EDC 19 Weatherford Economic Development Authority Inc. 11 Wolverine Management 13

Civil Fair Play This month we addressed the issue of How Consistent & Fair is the Texas Property Tax Code with Senator Paul Bettencourt who was recently appointed as Chairman of the Property Tax Reform & Relief committee. (See Pages 14 -15.) In next month’s issue, we will have a continuation of this topic with attorney interviews from law firms whose practices includes appraisal district representation as well as input from the appraisal districts themselves. We are also seeking input from the City of Austin regarding the recent dismissal of their lawsuit against Travis County related to the fairness of the property tax system.

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ray’s buzz

Broker Tradecraft and Etiquette A commercial real estate broker has a lot of things to keep in mind to be successful. Here are a few of them: BY RAY HANKAMER

Clients

Follow your instinct in accepting a client. Check clients out in advance before going to work for them. Make sure your client wants you to “win” if through your professional expertise you enable him to “win” in a business dealing. Researching prospective clients is relatively easy and private and is worth the time you spend to do it.

Listing

Get the listing. If you control it, you control the pace of the deal and many other aspects. Once you have gotten the listing and have through your marketing developed a stream of inquiriesand hopefully offers-screen the prospective buyers carefully. This is a duty to your seller but also smart business for you. You do not want to find out a buyer is unqualified after he has tied up your seller’s property for weeks or months. This breaks your marketing momentum and can give your seller the idea that another broker may be better.

Procedure/Letters of Intent

Steer away from any semblance of “practicing law”, as it is forbidden to begin with by the Texas Real Estate Commission. Especially avoid the temptation of filling in the blanks in a promulgated form or adapting a lawyer-prepared letter of intent from a previous transaction. By doing so some small honest mistake-especially when it comes to the wording in 34

January 2016

the “Special Provisions” box- can get you innocently embroiled in costly legal proceedings if the deal goes bad.

Advise both your client and the other side to employ a lawyer for all legal documents. Just putting in the phrase “not legally binding & for discussion purposes only” does not necessarily remove the possibility that an LOI could be deemed binding. Insist on lawyers.

When there is “hard” earnest money in a contract, I always recommend that my client require that it be distributed to him at the time it goes hard, and not wait to see if the deal closes. If the contract fails to close, the chances are good your client may not be able to receive the “hard” money if the other side resists approving its release by the escrow agent.

Broker Cooperation

Real estate brokerage is most often a collegial and cooperative endeavor. One broker has the seller, and another broker has a buyer. By working together, the brokers can serve their clients and each other. The seller’s broker usually is paid a commission which he usually shares with the buyer’s broker, and traditionally on a 50-50 basis. Exceptions to this rule may come when one broker “does more of the work” and in this case the brokers may agree to a disproportionate split. Since the listing broker controls the sharing of the commission, it is

advantageous to be the listing broker.

Some brokerage houses take the position that when they get the listing they are the designated recipient of the commission and that the buyer’s broker needs to get paid by his client. Because of precedent, the buyer’s broker and the buyer normally expect the commission to be shared by the seller’s broker, and therefore buyers are sometimes hesitant to pay any commission, leaving the buyer’s broker “hanging out” unpaid for his professional contribution to the transaction.

There are some who believe by refusing to share with the buyer’s broker that the listing broker is breaching his fiduciary duty to his client, the seller, to represent him to his best ability to get the property sold.

A good question to ask a seller’s broker who is refusing to share his commission is whether his client knows he is not sharing with the buyer’s broker. Often the seller/ client does not know this and will require his broker to share after all. All sellers should have an understanding with their broker upon signing the listing as to his intent to share with a buyer’s broker.

Negotiation

It is often best to let the other side make the first proposal. This can be accomplished by not quoting an asking price in the marketing material, and when a prospect calls to inquire, initiate a discussion about the buyer’s overall needs and ability.

Often there are aspects of a deal which are equally or more important to a buyer than price, and sometimes the seller can add value by providing information, extended closing, financing, etc. that causes a buyer to pay a higher price than he originally intended to pay. By discovering the various needs of a buyer, the seller and his broker can formulate a proposal more nearly able to

match all the needs of both sides, thus achieving a “win-win” transaction.

Be fair but firm with both sides during the negotiations. The listing broker can set the pace of the negotiation. A too eager broker telegraphs that your seller is eager and he may not be. Too laid back can be taken as rudeness or incompetence by the other side.

Closing

Contrary to the past, today brokers almost never attend closings. Most closing are done now by fax or email or messenger, and by not attending, the broker avoids being pressured by one or both principals to absorb unexpected closing costs. A senior closer for a title company once told me that virtually every commercial closing she had worked involved pressure on the broker to contribute, that inevitably the broker pitched in to “save the deal”, but that in her estimation not one single deal would have failed to close had the broker just remained firm or had not been present in the first place.

Deals That Don’t Make Sense

I have heard it said and I believe that “Hard work never goes unrewarded”. Even though the deal you have worked so hard on fails to close, you have nonetheless had the chance to make a favorable impression on all the parties to the failed deal: attorneys on both sides, title company personnel, surveyors, insurance agents, lenders and mortgage brokers, and the other side’s broker and principal. They may well remember you and recommend you for future deals. If a deal breaks down from your side in mid-negotiation, have the courtesy to call the other broker and tell him, and to thank him for his/her hard work. Don’t just go “radio-silent” and expect that to suffice as notice to the other side. Your personal rudeness could unfairly affect the other people in your firm and block them from getting business from parties you have offended. ●

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HIGHWAY 105 MONTGOMERY, TEXAS

TRACT 1

TRACT 2 TRACT 3

PROPERTY DETAILS • Three tracts of land in Montgomery, west of Conroe, totalling ±7.89 acres

SITE

TRACT 1: 3.96 acres TRACT 2: 2.94 acres TRACT 3: 0.99 acres

• Well located tracts, outside of Lake Conroe Village and across from April Sound Subdivision • ±1,305’ of frontage on Highway 105 • Full utilities available to site Kristen McDade 713.577.1808 kristen.mcdade@cbre.com

THREE TRACTS TOTALLING

±7.89 acres