This Week's Dallas-Fort Worth Deal Sheet
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Drever Capital Management has announced that it will — yes, finally — close on the construction financing of its 50-story skyscraper in June after clearing its final liens.
Despite its long and sometimes tortuous multiyear road to this point, Drever Capital predicts a 9% return on cost, compared to 6% for comparable properties. That is due, in part, to securing $150M in historic tax credits on a renovation that is expected to cost in excess of $380M and will be completed in 2019.
"Our $150M construction lender has received the final approval to close and we're expecting the remaining lenders and participants of the capital stack to follow suit shortly," Drever Capital Management announced this week. "While JLL and the lenders were pushing for a June 22nd closing, we realistically expect it to occur on or before June 29th."
The Drever, once the Hunt Oil Building, has a long and storied history as the location of the "Dallas" television show's fictional home of Ewing Oil. Its drift into redevelopment, and potential foreclosure, has been a roller coaster: from its sale to Maxwell Drever to the departure of its longtime financing partner to loan defaults to the status of its various liens to the source of its new financing.
Abatement of the hotel's asbestos was the largest such project in the state's history. Meanwhile, restoration of the tower's signature marble continues, and framing of the 38 floors of hotel rooms and apartment units is complete, according to Drever Capital.
"The remaining work to be done is essentially tenant improvements without the risks associated with a ground-up development," according to Drever's announcement, which opened the project up to additional investors.
Trademark Property Co. filled a number of key positions, including the lead on the company’s efforts to reposition the 1.4M SF Galleria Dallas.
Clay Walton will serve as vice president of leasing, overseeing leasing at Galleria Dallas and La Palmera, a 1M SF regional mall in Corpus Christi. Walton was previously with Centennial Real Estate as senior vice president of national leasing and The Macerich Co. as assistant vice president of leasing. Other personnel moves include hiring Rob Buie as senior portfolio manager and Gary Carlton as corporate portfolio controller, and promoting Cornell Holmes to vice president of asset management.
Berkadia's Taylor Hill, Michael Ware, Tom Burns, Jay Gunn and William Jarnagin brokered the sale of the 350-unit Montevista Apartments in Fort Worth. The project, at 5350 Bryant Irvin, was built in 1998.
Lee & Associates Dallas/Fort Worth's Stephen Williamson represented buyer Casey Kite in the purchase of a 14K SF industrial space at 2006 Farrington St. in Dallas. The seller, Century Oak Investments, was represented by Robert Blankinship of NAI Robert Lynn.
SARSAM LLC purchased a 16K SF building at 9101 Diplomacy Row in Dallas. Lee & Associates Dallas/Fort Worth's Stephen Williamson represented the buyer. Mercer Co.'s Jeremy Mercer represented seller Weintraub Investments.
P&M Family Trust purchased Woodhaven Plaza, a 23K SF retail property at 1201 Woodhaven Blvd. in Fort Worth. Vision Commercial's Jeff Marek represented the seller, WC 1201 Woodhaven L.P., and Whisenant Properties' Preston Whisenant represented the buyer.
Investment Property Exchange Services Inc. purchased a 10K SF retail building and a 5,300 SF pad site at 500 Flower Mound Road in Flower Mound. Transwestern's Lester Day represented the seller, Conyad L.P.
Zephyr Rail sold 9.8 acres at 850 Railhead in Fort Worth to 850 Railhead LLC. Transwestern's Jeff Givens and Todd Hawpe represented the buyer, and JLL's George Curry represented the seller.
14400 Midway LLC purchased a 53K SF office/warehouse facility at 15100 Midway Road in Addison. Chad Albert of NAI Robert Lynn brokered the sale.
HFM Properties purchased a 32K SF office/warehouse space at 3228 Skylane Drive in Carrollton. NAI Robert Lynn's Chad Albert brokered the sale.
Shearer Supply leased 26K SF of industrial space at 1500 Luna Road in Carrollton. Ken Wesson of Lee & Associates Dallas/Fort Worth represented the tenant, and Stream Realty's Blake Kendrick represented the landlord, GLP.
West DFW Carpet leased 17K SF at 1182 Security Drive in Dallas. Mercer Co.'s Jeremy Mercer represented the tenant. Paladin Partners' Brett McMillan represented landlord Vantage Properties.
RSG Products Inc. signed a new lease for 24,540 SF of industrial space at Saginaw DC Industrial Park, 440 West Lane in Saginaw. Transwestern's Jeff Givens and Todd Hawpe represented the tenant.
Perry Homes has leased 12,500 SF at 5055 West Park Blvd. in Plano. Perry Homes was represented by Jay and Jim Nelson of North Preston Properties. Transwestern's Matt Hurlbut represented the landlord.
M.A.N. Sports LLC leased 20,551 SF at 12150 Shiloh Road in Dallas. Holt Lunsford Commercial's Josh Barnes and Ben Wallace represented the landlord, Frontier Equity. NAI Robert Lynn's Stephen Cooper represented the tenant.
Long Range Systems leased 16K SF at 1155 East Kas Drive in Richardson. Josh Barnes and Ben Wallace of Holt Lunsford Commercial represented the landlord, Adler Realty Services.
WAFFL and Friends Ventures leased 18K SF of industrial space at 4711 Vermont Ave. in Fort Worth. Transwestern's Todd Hawpe represented the tenant and Nathan and Vassuer Commercial Real Estate's Gary Vassuer represented the landlord, Hudgins Cos.
Three new restaurants are opening at Cypress at Trinity Groves this month. Cypress at Trinity Groves is the first mixed-use project in the West Dallas development, directly across Singleton Boulevard from the Trinity Groves restaurants. Phase 1 includes apartments (352 units, fully leased) and 33K SF of retail/restaurant space, which is now 70% leased. The new restaurants are:
- Dulcet Café, an artisan coffee and pastry shop in 2,655 SF.
- BingBox Snow Cream, a 1,330 SF dessert shop. This is the company’s first U.S. location outside of New York City.
- Steam Theory Brewing Co., opening an 8K SF restaurant and tasting room.
Phase 2 of Cypress at Trinity Groves will add 300 apartment units and 12K SF of retail, plus a "new product offering of unique live-work spaces" to deliver late this year and early next, according to a statement by Trinity Groves.
PPG Industries is building a new distribution center in Flower Mound. The nearly 450K SF facility, which will be constructed and leased through Duke Realty, will be the largest distribution center for architectural paints and coatings in PPG’s U.S. and Canada network.
The project is expected to be completed in May.
KeyBank Real Estate Capital's Charlie Shoop originated a $26M Freddie Mac first mortgage loan for Churchill Estates of Lake Highlands. The four-story, 175-unit independent living property was built in 2009. The acquisition financing is a floating-rate loan with a seven-year term.
Greystone has provided $22M in bridge financing for the acquisition of Hunter’s Cove Apartments Homes in Waxahachie. Greystone Managing Director Ana Ramos originated the loan with Newmark's Andy Bratt acting as correspondent on the transaction.
Hunter’s Cove Apartments features eight three-story garden-style apartment buildings with a combined 192 residences. The $22M bridge loan carries a two-year term, and Greystone’s HUD group simultaneously processed the HUD 223(f) permanent financing, which is anticipated to close within the next six months.