8 Takeaways from Texas ICSC Convention
1. Retail, Restaurants and Entertainment
We found Venture Commercial partner Larry Leon at the Texas ICSC convention in Dallas Thursday. As fashion declines at lifestyle centers and malls, Larry tells us entertainment venues may soon become the anchors of shopping centers. A plus: entertainment is a destination experience, bringing in people from miles away. He also advises to look out for more chef-driven food at entertainment venues, from movie theaters to bowling alleys. Bowl & Barrel in The Shops at Park Lane is one example, as is his client, Pinstripes, which features an Ialian/American bistro along with bowling and bocce (a Frisco location is opening fall 2016).
2. Pay Attention to West Plano Village
We caught Cencor Realty Services EVP/Dallas development head David Palmer deep in conversation with The Weitzman Group and Cencor executive chairman Herb Weitzman. The duo and colleagues had multiple meetings about West Plano Village. The development already has Eatzi’s Market & Bakery, Kona Grill and a Dallas restaurateur Patrick Columbo concept, Princi Italia.
3. Grab That 1031 Money
Marcus & Millichap's Bill Jordan, David Luther and Blake Burnett. Bill tells us the Texas market has better ROIs as well as population and job growth that is attracting 1031 money from out of state (particularly California.) Many are getting up to 2% better ROIs all across Texas. There's also the rush to get deals done before the end of the year, Blake says.
We spotted McLaren-Hill Commercial president Jandy Thompson (right, with Wellington Realty's Jack Allen) between developer and property owner meetings. She launched the John Bowles Co's management arm, bought it when he sold out to CASE, then rebranded as McLaren-Hill.
4. Why Marriott Loves Texas
Marriott International's Ron Stewart (right, with Corinth Properties' Terrence Maiden and Dowdle Real Estate's Lynn Dowdle) tells us Marriott is growing, and Texas is the place to be. There is a sea of corporate growth and the metrics are right. He and Lynn have worked together on multiple deals and have more in the works, but they were hush-hush on the deets. They did tell us there will soon be two dual-branded hotels opening at the Galleria and in Frisco.
5. Kite's Shopping List
Kite Realty's Karly Kilroy (center, between Oklahoma City Chamber of Commerce's Tammy Fate and Kite's Kate Ruddell) tells us Kite is in acquisition mode. This year, Kite has acquired Bell Isle in Oklahoma City, Chappel Hill in Fort Worth and Colleyville Downs in Colleyville. The company owns a baker's dozen of assets and is on the prowl for more. It's looking for any Class-A anchored, stabilized center whether it's a neighborhood or lifestyle center, etc. Karly tells us Kite likes to be in primary markets with a focus on the Northeast, Southeast and Texas.
6. What Flower Mound Is Looking For
We stopped by the booth for the Town of Flower Mound and found Alora Wachholz and Mark Wood. They were on the hunt for retailers and restaurants, and they have two big projects where they can go: The Riverwalk and Lakeside DFW. Mark says there's a Courtyard by Marriott coming to The Riverwalk and a Brazilian steakhouse and Moviehouse & Eatery.
Goodwin Commercial's Pam Goodwin and Linda Zimmerman made the rounds of the EDCs to find out who needs some new retailers. Pam says it's a good way to see if the city has specific needs that she can help fill.
7. How Many Turns Should a Dunkin' Donuts Driveway Have?
It’s time to make the doughnuts! Dunkin’ Donuts’ Tim Hunt (Kingwood) and Paul Williams (DFW) gave us some interesting specifics on what they look for in locations. They like 2k to 3k SF combo locations with Baskin-Robbins on the morning side of the road. For Dunkin’ Donuts standalone stores, they’re looking for freestanding, end cap and in-line sites about 1,800 to 2,220 SF on the morning side of the road. They like CBD and urban locations with strong pedestrian traffic and visibility to the car traffic, too. Specifically, they like easy entry and exit into the parking lot with no more than two turns. They tell us there are a lot of stores in the Eastern half of the country and growth is heading toward the Midwest.
8. MCA Has Made a Ton of Deals
Metropolitan Capital Advisors' Scott Lynn (left, with colleagues Brandon Wilhite and Sunny Sajnani) moderated the capital markets panel (taking the group into a Shark Tank-like experience.) MCA has been doing lots of hospitality and retail deals, including: a $15M medium-term fixed-rate mortgage for the Worthington Square Mall in Worthington, OH; a $13M interim acquisition loan for the Walnut Square Shopping Center in New Braunfels; and a $9M permanent fixed-rate mortgage for Southwest Plaza Shopping Center in San Angelo.