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August 22, 2014
Close Up With John Dailey
PMRG has been emphasizing office acquisitions lately, with local buys like Sugar Creek on the Lake, 2603 Augusta, and 2900 Weslayan. Leading the charge is managing director of investments John Dailey, a man who's dabbled in a little bit of everything real estate.
John (a cigar aficionado) graduated from Harvard in 1984—this month is his 30th anniversary in the biz—and came back home to Houston looking for a job where he could control his own destiny. It was very difficult timing to enter real estate, but he started as a landlord rep for Tom McKenzie and later transitioned into investment sales, selling every property type. John says there were so many problems in the industry that no one knew how to handle, so working hard for two to three years made you an expert. He still says the hardest transaction of his career is “any deal I did in the '80s.”
Here's John with his team—Michael Dewey, Barbara Gibson (she's been with him 16 years), Ben Bittner, and Carlos Chacon—whom he credits for doing all the work in buying properties. John tells us his favorite deals were brokering the land acquisitions for Methodist Hospital in the '90s that became major hospitals like its Sugar Land facility. Lately, he's been busy preparing the extensive renovations at 2900 Weslayan: It's in the final stages of design, and John expects to start construction in 30 to 60 days. He tells us 2900 Weslayan is a rare true live/work/play experience in Houston, and is typical of the type of opportunity he wants.
Some things you don't know about John: He loves cities (forget the beach, he'll take a London or Boston vacation any day), and is excited that his two kids are getting old enough for international travel. Above, they're at the 9/11 Memorial in New York. On his bucket list is a trip to Paris. He's also a real golf lover (he hopes to one day play Augusta National) and an avid moviegoer (the best films he's seen lately are Wolf of Wall Street and Boyhood). And last but not least, the former Harvard football player collects sports memorabilia.
Houston's Newest Gazillionaires
Commercial real estate developers drove wealth creation in Houston from 2000 to 2006. Not anymore, says US Trust SVP Paul Ehrsam. Now most of Houston's wealth is being created by oil and gas entrepreneurs, but we still benefit—Paul tells us he's advising them to buy income-producing real estate to diversify their portfolios. These high-net-worth investors are particularly drawn to multifamily, warehouses, and net-leased projects. Another popular investment: income-producing farmland.
Paul tells us many of his clients are investing into European real estate because their cycle is a few years behind ours, but most prefer to invest locally because they understand the market and like to see what they own. Paul says many of these private acquisitions are happening in the popular suburbs like Katy, Northwest Houston, and Kingwood. He admits the market is getting heated, but says he's still finding opportunities for his clients to invest.
IREM-ers Mix Bowling and TV
Real estate pros went all out at IREM's recent prime time-themed Bowl-a-Thon event. Pictured, CBRE's La Nee Evans and Natalie Juarbe with Always In Season's Cindy Davis and Mallory Garrison. The ladies, of course, are “The Mary Anns.” (She was our favorite, too.)
We wouldn't want to be on the wrong side of justice with these “BMS Ninja Turtles” around. BMS Management's Patty Phillips, Brittany James, Christy Cobb, and Vanessa Dyer even brought their own prop pizza.
ALS Ice Buckets Continue
Pinnacle Structural Engineering principal Adam Cryer is the latest to take the ALS Ice Bucket challenge. See his video here and donate to the cause here!. He's callled out Pinnacle senior project manager Pete Dean, Power Brown principal Joe Powers, and Energy Architecture principal Justin Hasbrouck. We've also got an update on JLL's challenge yesterday—Cushman & Wakefield executive vice chairman Tim Relyea answered the call, and nominated JLL prez Dan Bellow, who's also already doused himself. Dan has called out his workout partners: Welcome Wilson Jr, Ernest Johnson, Rob Schanen, and Matt Blackwell.
Don't Miss Our Future of Downtown Summit!
Downtown is home to a workforce of more than 150,000, 10 of Houston's 26 Fortune 500 companies, and $5B in construction investments completed since 2000. $1.4B is under construction now, and $2.6B is planned. Will the City's residential incentives and retail taskforce make it into a vibrant 24/7 area? Don't miss Bisnow's Future of Downtown event Aug. 27, where you'll hear experts discuss what's being built, what's drawing companies and residents to Downtown, and what the submarket will look like in a few years. Register now!
See You in a Week
We're taking next week off to upgrade our technology and recharge our batteries. We pride ourselves on being active members of the commercial real estate community—out at events, in-person interviews—and keeping up with you takes energy. When we return, expect more scoops, more photos, and more moorings (if we're doing a story about a port).
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Bisnow is shutting down next week for Labor Day, so the newsletter will not be publishing. But you can still email Catie Dixon, firstname.lastname@example.org, so she doesn't get lonely.