|Pent-up demand from buckets of equity on the sidelines means something had to give. And it looks like sellers are finally responding, says JLL managing director John Alvarado, who's heading up the team listing Legacy Place I & II.|
JLL?s team of John and fellow managing directors Jack Crews and Evan Stone is marketing the Class-A office for institutional investors advised by J.P. Morgan Asset Management. The two-building 300k SF property on more than 15 acres in the Legacy Business Park was built in 1998-99 and is 98% leased with no meaningful expirations until 2018. John says this submarket has been the best performing one in DFW, garnering more than 30% of Class-A absorption in the past 10 years. Prime buyers for the property could be an institutional buyer, a public or private REIT, a pension fund, or a foreign buyer looking for a long-term hold. The property is being marketed without an asking price, John says.
Visiting John yesterday, he told us that in the past two months, Franklin Street Properties Corp purchased the 214k SF Legacy Town Center in Plano for $54M from Trammell Crow Co and Rosemont Realty bought two Younan Properties (8080 Central and 9400 NCX). There is also the recent listing by Younan of Energy Square, which is also being marketed by the JLL Capital Markets team (read more about it below). While it seems like the market?s gone from zero to 10 rapidly, John says we're slowly getting back to normal now. In a typical market, DFW will see about 25 to 40 institutional quality buildings sell annually. During the bubble years of 2004 to 2008, DFW was seeing as many as 60 to 80 large institutional quality trades occurring annually. From 2008 to 2010, there were maybe five a year here, he says.
Younan Properties snagged JLL to market its 944k SF Class-A Energy Square I, II & III for sale, Younan top dog Zaya Younan confirmed for us. He tells us ?there is significant demand from private and institutional investors for high quality office buildings in Dallas because of the improving market fundamentals and recent CAP rate compression. Certainly this was the case with the sale of 8080 Central and 9400 NCX.? The Energy Square complex is more than 80% occupied.
CB Richard Ellis was awarded the leasing assignment for the 175k SF Class-A 3100 Monticello office property along the Katy Trail in Dallas' Knox/Henderson area. The new owner, Dallas-based private investment manager and full-service property management and construction services firm Westdale Real Estate Investment and Management, controls a portfolio of more than $2B of multifamily, commercial properties, and distressed debt investments. CBRE SVP J.J. Leonard and senior associate Susannah Bame will lead all marketing efforts for the property.
Irving-based FelCor Lodging Trust has plans to sell up to 14 hotels by the end of this year and bring another 21 to the market. The asset-sale strategy is part of a plan to improve portfolio quality. FelCor brought 14 hotels to market at the end of 2010, six of which are now under contract to be purchased.
Quick Technologies leased 26k SF of office space at Parkside Corporate Center at 16301 Quorum Dr in Addison. Jones Lang LaSalle's DFW prez Paul Whitman and EVP Calvin Hull repped the tenant. Case Commercial Realty's Buddy Tompkins represented the landlord, WCP Parkside.
Senior Care Centers signed a 10k SF lease expansion and extension at 2828 Harwood, bringing its total building footprint to 33k SF. Jones Lang LaSalle EVP Josh White and VP Brooke Armstrong repped the tenant. Harwood International was self-represented by Jihane Boury.
Fitness Connection leased 47k SF of space at 3775 S Cooper St in Arlington from AVG Partners, AVG-Arlington. The Retail Connection?s Wyatt Russo repped the tenant and CBRE's Bob Ginsberg and Amy Nott repped the landlord. Additionally, Wyatt, along with colleague Jeremy Zidell, repped Racetrac Petroleum in a 72k SF raw land lease at the southwest corner of Hebron Pkwy and International Pkwy in Carrollton from the Billingsley Cos.
Celanese Corp leased almost 113k SF of office space in the Urban Towers at 222 W Las Colinas Blvd in Irving from SP Millennium Center. CBRE's Bill Lokey Jr. and John Fancher represented the landlord. The tenant was represented by JLL?s Scott Collier, Jon McNeil, and Rachel Brown.
Ogletree, Deakins, Nash, Smoak & Stewart PC leased 16k SF of office space at 8117 Preston Rd in Dallas from CB Richard Ellis Investors - Strategic Partners. CBRE's J.J. Leonard, Jay Bailey, and Susannah Bame repped the landlord. CBRE's Chris Herrmann and Jeff Kittleson repped the tenant.
The John Bowles Co was selected to lease and manage the 239k SF Toll Hill Office Park at 5310 and 5440 Harvest Hill. The building's about to undergo extensive capital improvements. The John Bowles Co was also selected to lease and manage the 121k SF 7515 Greenville, which is 81% occupied. JBC?s Chris Lipscomb and Ed Pachecano will lead the leasing efforts for both properties.
DG FastChannel renewed and expanded its lease at Sterling Commerce Center at 750 W John Carpenter Frwy. The firm renewed its 26k SF lease of office space on the seventh floor of the building and expanded into 27k SF on the fourth floor through a sublease with International Business Machines.
MobileComm Ventures purchased 12k SF of office space at 465 President George Bush Frwy in Richardson from Custer Commons. CBRE's Dennis Barnes and Rick Rensi represented the seller. Hudson Peters? Janice Peters and Sanober Syed represented the buyer.
Marcus & Millichap senior investment specialist Al Silva had the exclusive listing to market Pebble Cove, a 160-unit multifamily property in Dallas, selling it for an out-of-state partnership. The local buyer is a private investor and was also repped by Al. At 4302 Woodhollow Dr, the property was seller financed to facilitate this value-added transaction. This was Al?s fifth multifamily transaction this year.
Jeld-Wen sold a 58k SF warehouse at 4000 E SH 31 in Corsicana. Cushman & Wakefield of Texas? Ashley Pope and Gary Collett represented Jeld-Wen along with Hughes Commercial's Craig Hughes and Cushman & Wakefield's Bo Mills and Mark Detmer, both of Arizona. BR Properties was the buyer and was represented by Karen Williams of RE/Max of Corsicana.
Construction is under way on a 105k SF JCPenney store at Trammell Crow Co's TimberCreek Crossing, a new 485k SF urban retail center located at Northwest Highway and Skillman Street. The store is scheduled to open this fall. It will participate in the Department of Energy?s Net-Zero Energy Project, through which the store?s design and construction teams will collaborate with two DOE National Laboratories to help achieve energy savings of 50% or more. JCPenney will join anchor tenants Walmart and Sam?s Club, which broke ground in early 2010 on a stand-alone, two-story, 320k SF building. Bank of America started building a 4,500 SF bank branch, also expected to open in early fall. CBRE SVP Jeff Kittleson and senior associate Scott Head will head the leasing efforts.
The MGHerring Group selected Cadence McShane Construction Co to build a 26k SF retail project including a 17k SF Old Navy store and an adjacent 9,000 SF space at The Village at Fairview. Cadence McShane will construct the exterior storefront, outdoor aesthetic canopies, and decorative planter boxes, in addition to interior vestibules and polished concrete floors. JPRA Architects will provide the architectural services. The project is scheduled for completion in August.
PEOPLE ON THE MOVE
Emily Hoffman joined TIG Real Estate Services? corporate and brokerage services team as associate VP with the primary focus on corporate and brokerage services with an emphasis representing office tenants. Prior to joining TIG, Emily directed the business development department at BOKA Powell Architects for five years identifying, tracking, developing and maintaining relationships with potential and existing clients, nationally and internationally.
Travis Noble joined Hill & Wilkinson as group manager for special projects, interiors, and building envelope. Travis will serve as the liaison with the owner and architect for Hill & Wilkinson?s special projects. Before joining the firm, he worked for a national general contractor as VP of the DFW group. His experience includes business development, pre-construction and construction operations.
BMC Capital hired Jim Tennial as a VP in its Dallas office. Jim has more than 20 years of experience in SBA and CRE lending and was previously recognized as a top performer at Bank of America.