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Real Estate Bisnow
The largest commercial real estate publication in the United States.
   
January 4, 2012 
 
 
LOOKING BACK @ 2011

 
2011 brought DFW the Super Bowl (game), the NBA Championship (trophy), severe weather from a Texas-style blizzard to drought conditions, and, we didn't forget, lots of transactions. From leases to sales, the year is a testament to how DFW is out-performing the rest of the nation. Here are our top picks for 2011.
 
Manny Ybarra
One of the big sales of the year: Pillar’s acquisition (valued at $47M by Dallas Central Appraisal District) of the 800k SF former Nortel HQ in Richardson’s Telecom Corridor for an undisclosed amount. Pillar Commercial founder (and 2011 NTCAR Stemmons Service Award winner) Manny Ybarra tells us 2011 investment sales were steady, but still on the soft side of what has historically traded in DFW. There were several significant real estate trades in 2011, as well-capitalized investors were able to buy at attractive prices, especially in the value-add category.
Energy Square
Younan Properties sold its almost 954k SF Energy Square office portfolio (valued at $61M by the DCAD) in November to Champion and Lincoln Property Co, which purchased the properties in a JV with Long Wharf Real Estate Partners. Earlier this year, Younan sold Eighty-Eighty Central and 9400 North Central Expressway to Rosemont Realty. JLL (which repped Younan in all the deals) is also repping YPI in the sale of KPMG Centre.
Chris Jackson
Stream Realty managing director Chris Jackson (snapped while moderating Bisnow’s Office of the Future event last month) says other notable DFW transactions closed or in the works: the Towers at Williams Square; Legacy I,II,III; Legacy Place I & II; and JP Morgan purchasing controlling ownership in Trammell Crow Center, Fountain Place, and The Crescent. Tangible result: investment sales are up somewhere around 45% over last year. DFW is seeing bigger deals and more of them, he says. For Stream, good news includes the new leasing assignment for the Trammell Crow Center as well as 4.2M SF Cabot industrial portfolio.
Plaza of the Americas
And, a Merry Christmas for M-M Properties, in partnership with an institutional client of Dallas-based Invesco Real Estate, which acquired the 1.2M SF Plaza of the Americas in Dallas' CBD in late December. HFF represented the seller and the purchaser in placing acquisition financing. Peloton Commercial Real Estate has been retained as the exclusive leasing agent for the property with property management services provided by M-M Properties. Plans for the property: renovate, reposition, and rebrand. Invesco managing director Greg Kraus tells us small changes should be noticeable in Q1 with more significant changes by mid-year.
Kimberly Lay, Kellie Davidson, and Sharon Friedberg
Bradford Commercial Real Estate Services SVP Sharon Friedberg (right, with Hudson Peters’ Kimberly Lay and Coppermark Bank’s Kellie Davidson at a Dallas CREW meeting last year) tells us 2011 brought a list of various impacts both good and bad. Her take: many deals moved forward on buildings that were either posted for foreclosure or foreclosed upon; frustration in dealing with lenders and banks that didn’t understand CRE and wanted deals done without commissions or tenant improvements; re-zoning; increased construction costs; tenants migrating back south to Uptown/downtown; re-plating; and volatility from the stock market and global economy.
 
Michael Dardick
Granite Properties sold its 1.1M SF Dallas industrial portfolio to Exeter Property Group for $47M. Granite Properties prez Michael Dardick told Bisnow last year that the decision to exit the industrial market was part of a plan to focus on the office portfolio and look at some new markets, using its new funds for growth. The Dallas portfolio included newly constructed, bulk industrial facilities that were about 70% leased at the time of the sale as well as two improved development parcels able to accommodate 740k SF of industrial product.
 
CityPlace in Fort Worth
In early 2011, Spire Realty Group acquired the 1.2M SF City Place (the RadioShack Corp HQ from its opening in 1976 until 2005... if you're lucky you can still find headphones hiding in the vents) in Fort Worth’s CBD. The property spans four blocks and includes three buildings: One City Place, Two City Place (pictured), and City Place Center. Two City Place is the 329k SF, 19-story north tower. It was fully renovated into a Class-A office building in 2008 and 82% leased (from zero in April 2008) at sale time. One City Place was the vacant 19-story, 501k SF south tower. City Place Center was a vacant four-story, 215k SF building connecting the towers. Plans include its demolition and replacement, providing a retail promenade on the ground level, and additional parking above and below for both towers.
 
Jerry World
DFW had high hopes for hosting the Super Bowl and, despite severe winter weather, still had a great response, says Sundance Square prez and CEO Johnny Campbell. Fort Worth’s Sundance Square hosted ESPN and was host city to the Pittsburgh Steelers. Irving hosted the Green Bay Packers. Arlington had Jerry World and the actual game, and Dallas had bucket-loads of parties. Cowboys CFO George Mitchell III (not to be confused with the original and II— we’re so green, we recycled that joke) says the three Dallas Cowboys Pro Shops at DFW Airport had one of their biggest retail days ever the Monday after the big game, and local hotel occupancies were among their highest ever.
 
Omni Convention Center hotel
One of the most anxiously anticipated hospitality events in DFW was the 11/11/11 opening of the $500M city-owned Omni Convention Center hotel at the corner of Lamar and Young streets in Dallas. City leaders are pinning hopes of rebuilding the city’s convention business with the opening and 300,000 room nights are already booked with a half a million guests expected to stay annually. Hotel facts: 1,001 rooms, 23 stories tall, 1.2M SF hotel; with 110k SF of meeting and event space.
 
Dallas Logistics Hub
As part of an effort to emerge from Chapter 11 bankruptcy, the owner of Dallas Logistics Hub sold more than 1M SF at the inland port for about $75M. The bulk of that space was two Class-A LEED Gold industrial buildings totaling 828k SF sold to Atlanta-based Weeks Robinson, which also increased its DFW presence to more than 2M SF with the 700k SF acquisition of two distribution centers in the Railhead-area, the 506k SF Forum 303 Crossing in Arlington, and 827k SF 4800 and 4900 Langdon Rd in South Dallas. DLH also sold the 200k SF ADESA Dallas Auto Auction Facility on 175 acres on the Hutchins side for almost $51M to FKAR. Another big industrial move came at year's end when Duke Realty bought 1.3M SF: two bulk warehouses and 98 acres in Dallas.
 
Irving Convention Center
Other notable 2011 events: the opening of the $133M Irving Convention Center at Las Colinas; the passing of Charles Wyly and Leo Corrigan; massive renovation projects at both Love Field and DFW International Airport; AMR bankruptcy; and construction started on the LBJ Express. The whole community roared in support for the ’11 NBA championship series win by our Mavericks and we mourned the ’11 World Series loss (for a second consecutive year) of our Texas Rangers. We won’t even mention the Cowboys. On a personal note, Bisnow DFW reporter Tonie Auer finally traded in her outdated mom-mobile (a 2005 Kia Sedona affectionately named Wheezy McWhistleMobile, may she rest in peace) for a Cowboys blue ’11 Mitsubishi Outlander mobile news unit.
 
Hat tip to Colliers’ Daniel Rudd for our top story of tonight: Francisco Franco is still dead! Email your news to tonie@bisnow.com
 
 
 
 
 
Crown Sterling (Princeton
 
KBS (2525 McKinnon -3)
 
BOMA Dallas (Awards)
 
Duke Realty (Stability) D
 
Tower Club 2
 
Forney EDC (Soccer)
 
Bisnow DFW Health DFW
 
Microsoft (Share)
 
Arent Fox Barcode DFW
 
Bisnow Churchill MDFW
 
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