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This Week's Dallas-Fort Worth Deal Sheet

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Toys R Us’ closing left large distribution centers in the lurch. But a giant one in Midlothian has a new home.

This Week's Dallas-Fort Worth Deal Sheet
Toys R Us distribution center in Midlothian, Texas

MPI Group, a subsidiary of Malouf Bedding, purchased the 837K SF former Toys R Us industrial building at 3800 Railport Parkway in Midlothian. Lee & Associates Dallas/Fort Worth’s Trey Fricke and Reid Bassinger represented the buyer and had been scouring the DFW area for a modern industrial building that could be purchased below market value. Toys R Us’ March announcement of its bankruptcy gave them a foot in the door.

“The Dallas/Fort Worth industrial market continues to be within the top two markets in the country so it took the bankruptcy of Toys R Us to find a property that matched the value play we were looking for,” Fricke said.

EXECS

Ron Gilbreath joined Avison Young as vice president of the company’s newly formed real estate management services practice across DFW. He will be responsible for the Dallas office’s property management operations and landlord business development program as well as the recruitment of commercial property management professionals in the greater DFW area. Gilbreath has 26 years of experience, most leading the asset management division of CapHarbor Management.

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Churchill Capital’s Trip Neil and Steve Forson were named partners in the company. Neil raises capital and manages Churchill’s underwriting and closing process for commercial real estate projects throughout the United States. Forson steers the firm’s principal capital investments, which total approximately $100M, and arranges debt and equity capital for CRE projects.

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Kristi Ruggeberg joined Passco Cos. as director of multifamily investments. Ruggeberg, who is a 35-year industry vet, will remain based in Dallas and will oversee 10 properties in Passco’s multifamily portfolio, which includes approximately 40 properties and 13,000 units nationwide with a total market value in excess of $2B. She was most recently director of asset management for UBS Realty Investors.

SALES

This Week's Dallas-Fort Worth Deal Sheet
Park NinetySix 90, a Class-B multifamily property in Northeast Dallas.

Concord Capital Partners purchased Park NinetySix 90, a 506-unit, Class-B multifamily community in Northeast Dallas. The 412K SF property at 9690 Forest Lane was built in 1971 and was 87% occupied at the time of sale. CBRE’s Chris Deuillet, Danny Baker and Chandler Sims represented seller RS Jackson Branch.

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Highland Capital Management purchased the 42-story trophy office Cityplace Tower building from Parmenter Realty Partners and Angelo, Gordon & Co. Highland plans to revitalize the iconic Uptown property’s common areas and strengthen the existing amenity base with new retail space, restaurants and tenant amenities. Colliers’ Creighton Stark, Chris Boyd and Jihane Boury advised both parties in the transaction.

At 1.4M SF, the property’s sale is one of the biggest in this cycle in Dallas. Avison Young was appointed as the exclusive listing agent, and NexBank Realty Advisors will serve as the property management group.

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A medical company purchased an 11K SF building at 817 West Jefferson Blvd. to build a new general practitioner clinic. Vista’s Sam Welles and Sarah Catherine Norris represented the seller, and Century 21 Mike Bowman’s Fernando Ramsey represented the buyer.

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An undisclosed buyer purchased a portfolio of three QuikTrip locations — 7541 Boulevard 26 in North Richland Hills, 8414 South Hampton Road in Dallas and 1235 East Belt Line Road in Desoto. Vista’s Sam Welles and Sarah Catherine Norris represented the sellers.

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Scott + Reid purchased the former Sambuca building in Addison to be its new HQ. The general contractor is expanding from 15K SF to 24K SF and will add a two-story structure to the front of the existing property at 15207 Addison Road. Construction will begin in September, and Scott + Reid will move into the space next summer. CBRE’s Baron Aldrine, Mike Cleary, Greg Pierce and Mike Kay represented the buyer.

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An undisclosed buyer purchased Steeplechase, a 316-unit multifamily property in Irving. Berkadia’s William Jarnagin, Jay Gunn, Tom Burns, Taylor Hill and Michael Ware represented the seller.

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ZLM Holdings purchased 2.9 acres at 1735 West Crosby Road in Carrollton. Mercer Co.’s Keenan Cook represented the buyer, and CBRE’s Steven Berger represented seller ZMR Capital Briercroft LLC.

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Hertz Investment Group acquired the Pier 1 Imports Building, a 20-story iconic property in Fort Worth’s Central Business District. It is Hertz’ first purchase in Fort Worth and third in Texas. Pier 1 Imports occupies most of the 410K SF building, which is 100% leased.

LEASES

This Week's Dallas-Fort Worth Deal Sheet
Aerial rendering of Crossroads at Terrell

Crossroads at Terrell got its first slate of tenants. CBRE’s Andrew Lehner is marketing the project on behalf of RealtyLink and Oakridge Investments, developers of the 190K SF property at the northwest corner of Interstate 20 and FM 148. The new tenants opening in spring 2019 include Hobby Lobby, Ross, Five Below, Rack Room Shoes, Burke’s Outlet, Ulta, Marshall’s Chick-fil-A, Tru by Hilton and La Quinta. Film Alley Movie Entertainment Center, a 74K SF movie theater, bowling alley and entertainment facility is opening next year.

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Service Experts Heating and Air leased 13K SF at 1840 North Greenville Ave. in Richardson. Vista’s Sam Welles and Sarah Catherine Norris represented the landlord. Service Experts combined multiple call center locations throughout the U.S. into this one center near its corporate offices.

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Aershin leased 20K SF at 1200-1260 International Parkway in Richardson. Mercer Co.’s Chandler Mason represented the tenant, and Proterra Properties’ Dan Lawson represented landlord Greenbriar Holdings Dallas.

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PMI Sales and Marketing Services renewed its 30K SF lease at 4415 Simonton Road in Farmers Branch. Holt Lunsford Commercial’s Andrew Gilbert represented the landlord, TA Realty. Eric Crutchfield of Stream Realty represented the tenant.

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Telecom Expertise Industries renewed its 10K SF lease at 10410-10450 Markison Road in Dallas. Holt Lunsford Commercial’s Josh Barnes and Ben Wallace represented the landlord, Gateway Properties, and Bradford Commercial’s Kevin Santaularia represented the tenant.

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Factory Blue has signed a 66K SF lease at 4395 Diplomacy. Holt Lunsford Commercial’s Matt Carthey and Thomas Grafton represented the tenant. Lee & Associates’ Adam Graham and Mark Graybill represented the owner.

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Wood Mine Imports renewed 10,500 SF at 1241 Majesty Drive in Dallas. Mercer Co.’s Jeremy Mercer represented the tenant, and DDB Properties’ Bryan Hinsey represented the landlord in-house.

FINANCING

This Week's Dallas-Fort Worth Deal Sheet
2400 Glenville

HFF’s Brian Carlton arranged refinancing of 2400 Glenville, a 391K SF office complex on 35 acres in Richardson. The three-year, floating-rate loan for borrower Q Real Estate Holdings, an affiliate of Q Investments, was through CapitalSource, a division of Pacific Western Bank. Q purchased the building in 2015 and has completed renovations and backfilled 47% of the space vacated by Verizon Communications.

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ReadyCap Commercial hit a milestone, surpassing $3B in funded loans since it opened in Irving in 2012. ReadyCap is a subsidiary of Sutherland Asset Management Corp. and originated its first loan in 2013.

DEVELOPMENT

Vistaprint is opening a 322K SF manufacturing facility in Southern Dallas. The company expects to invest $50M over the next couple of years in the new site near the International Inland Port of Dallas and aims to have initial sections of the plant (200K SF) up and running by the end of 2019. The plant is due to reach its full production potential by 2023. This will be Vistaprint’s third manufacturing facility in North America and second in the U.S.

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Frisco Station is working with AT&T to be one of the first communities in the nation built from the ground up with 5G Evolution wireless tech. The 242-acre mixed-use development will have wireless stealth micro cells, ultra-fast internet and robust WiFi throughout its parks, residential options, hospitality units and corporate spaces. This sets the stage for the implementation of innovations such as Uber Air’s Skyport or the drive.ai autonomous vehicle pilot program.

 

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This Week's Dallas-Fort Worth Deal Sheet
Rendering of First Park 121 in Lewisville

First Industrial Realty Trust is breaking ground on First Park 121 on a recently acquired 84-acre site in Lewisville. Phase 1 includes two rear-load facilities of 220K SF and 125K SF, respectively, costing a total $27.5M. First Park 121 can accommodate four warehouse/distribution buildings totaling up to 727K SF, and is seeking build-to-suits ranging from 125K to 260K SF. Lee & Associates’ Adam Graham and Mark Graybill handled land acquisition and will lease the property. Alliance Architects is handling design, and Arch-Con Construction is the general contractor.

THIS AND THAT

Invesco Advisers awarded the property management assignment of 1920 McKinney Ave. to Avison Young. The Parkview building is a 142K SF multi-tenant office building in Uptown.

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CBRE, in partnership with OMS Strategic Advisors, was awarded marketing for multiple assets on behalf of Dallas County. The assets include the following acquisition/redevelopment opportunities:

  • 10056 Marsh Lane, a 35K SF office building on 1.9 acres.

  • 2020 North Beckley, a 3-acre development site.

  • 7201 South Polk St., a 30K SF office building on 3.77 acres.

  • A handful of small office buildings.

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Boardroom Salon for Men, a Southlake-based company with 30 company-owned and franchised units across Texas, Oklahoma, Georgia and Tennessee, received an investment by affiliates of LightBay Capital. LightBay now owns a majority stake in the company, with co-founders Bruce and Heather Schultz retaining significant ownership. Boardroom will now accelerate its growth plans by opening new salons and new markets. LightBay was represented by Massumi + Consoli and Harris Williams, while Boardroom was represented by Ferguson Braswell Fraser Kubasta and Deloitte Corporate Finance.

Related Topics: Toys R Us, Midlothian