Wednesday, March 22, 2017

Victory Park And The Crescent Add Retail Heavyweights

DALLAS—Consistent and wage job growth, and consumer confidence remains near decade highs, fostering a strong retail consumption environment that will support retail center performance found in these mixed-use projects.
DALLAS—The Victory Park and The Crescent bar, restaurant and gallery scene are poised for change with several new tenants joining the mix in both projects. Three of Dallas’ top food and beverage operators all will open concepts at the Victory Park mixed-used district later this year and two new restaurants and the contemporary art gallery will join The Crescent.
This & That Concepts will open a 4,232-square-foot restaurant and bar, plus a 2,600-square-foot second-floor covered patio overlooking Victory Plaza and Victory Park Lane, at the northwest corner of Victory Park Lane across from the W Dallas–Victory Hotel. The restaurant team is behind local favorites, High Fives, So & So’s and The Standard Pour.
8020 Hospitality and Brooke Humphries will open a 24,022-square-foot restaurant and entertainment concept occupying the entire ground floor of the west Victory Plaza building, in the space formerly occupied by Nove and N9NE. Led by Elias Pope, 8020 Hospitality’s other DFW-area concepts include HG Sply Co. and Standard Service.
Brooke Humphries also will open a 2,466-square-foot bar and tavern with a 1,179-square-foot covered patio inside the parking garage on Victory Avenue, across from the Arpeggio apartments. Humphries is the mind behind several local successes, including Barcadia, Beauty Bar, Mudsmith, It’ll Do Club and Pints & Quarts.
The new concepts are part of a district redevelopment led by owner Estein USA and retail partner Trademark Property Co., focused on evolving Victory Park into a more walkable urban neighborhood with a three-block, two-sided retail district on Victory Park Lane. As part of the transformation efforts, Victory is undergoing full remerchandising to include an eight-screen 750-seat Cinépolis Luxury Cinemas–Victory Park and retailers. Most recently, the unfinished parking garage across from the W Dallas-Victory Hotel was completed, adding 22,000 square feet of ground floor retail space. In addition, construction is underway on the mixed-use building at Victory Park Lane and High Market Street, which will include the movie theater, 20,000 square feet of new ground floor retail and 285 apartments, all of which are slated to open late this year.
“Since getting involved with Victory Park, our vision was to change what needed changing, finish what was unfinished, and merchandise and brand the district in an authentic manner, consistent with great walkable streets and districts. These concepts and operators will certainly do that,” said Terry Montesi, CEO, Trademark Property Co. “In a few short months, visitors to Victory Park won’t recognize how it looks or the experience they have when they come to Victory.”
At The Crescent, Sixty Vines, a popular Plano restaurant that is part of Dallas-based Front Burner Restaurants, is opening its second dining spot this fall, and East Hampton Sandwich Co. will open in early summer. Also, veteran gallery owners Karen and Michael Bivins debuted the Bivins Gallery a month ago. The addition of two new restaurants and the contemporary art gallery–along with the successful openings of Shake Shack, Ascension Coffee and Moxie’s Grill & Bar–builds upon a strategy to make the 31-year-old mixed-use complex a more popular gathering space in the vibrant Uptown neighborhood.
“Since the recent $33 million renovation at The Crescent, uses of the exterior spaces have increased tremendously,” said John Zogg, managing director of Crescent Real Estate Equities LLC. “With the addition of Ascension Coffee, famed New York-based Shake Shack and the American debut of Moxie’s Grill & Bar, plus the newly redefined presence of Stanley Korshak, bringing in more new restaurants and introducing an art gallery representing museum-quality artists creates a perfect balance with the other dynamic changes and new vibrancy at The Crescent today.”
See Full Article Here
Lisa Brown/Globe St.

Developer Craig Hall brings Asian fusion restaurant to Dallas' Hall Arts

Developer Craig Hall will bring another restaurant concept to pair with Stephan Pyles' Flora Street Café — an Asian fusion concept, called Musumé.

The full-service, contemporary restaurant will set up shop within a 5,000-square-foot space, with an expected opening this November.
Hall, who is founder and chairman of Hall Group and developer of Hall Arts, said the concept will bring a new dining option to the companies at KPMG Plaza and will be a destination restaurant in the Dallas Arts District.

"We think it will be a great fit for the neighborhood," he added.

Musumé — which is Japanese for daughter — will help bring a complementary restaurant to Dallas celebrity chef Stephan Pyles' flagship restaurant, said Josh Babb, creator and co-owner Rock Libations.

Rock Libations is the restaurant group behind Shooters in Victory Park, Kenichi Dallas, Chop Shop in Carrollton and Chop Shop Live in Roanoke.

Candace Carlisle/Dallas Business Journal.

It's confirmed: Law firm moves headquarters to Dallas' Union project

International law firm Akin Gump has confirmed its corporate office move to three floors within The Union Dallas, a mixed-use development under construction near Uptown Dallas.

The announcement on Tuesday gives confirmation to real estate sources saying Akin Gump was moving to The Union. In all, the law firm will lease about 68,000 square feet of office space.
"By making this move, we are gaining a great new space in which to serve and receive our clients that emphasizes efficiency, convenience and collaboration," said Ken Menges, partner-in-charge of the firm's Dallas office, in a statement.

Arizona-based RED Development got underway on the project last year. The mixed-use development is slated to include a 22-story Class AA office tower, a 23-story apartment building with retail and restaurant space, an outdoor central plaza and a 60,000-square-foot Tom Thumb grocery store.

Akin Gump makes to make its move to The Union Dallas upon completion of the project in the next two years. About 170 employees will make the move as part of the relocation, which includes about 100 lawyers and advisers.

With Akin Gump, The Union Dallas' office space is more than 60 percent leased. The office tower is shaping up to be the most prestigious business address in the city, said Mike Ebert, managing partner at RED Development.

Dallas-based HKS Inc. is the project designer of the blue-hued office tower.
The Union Dallas will also include restaurants, such as The Henry and North Italia, as well as another law firm — Vinson & Elkins — and independent accounting firm Weaver.

The mixed-use development is slated for delivery next year, which will mark of a four-year journey for RED Development, who announced The Union in May 2014.

Candace Carlisle/Dallas Business Journal.

Huge Deep Ellum development will take more than 2 years to build

Developers who have started construction on the 8-acre Epic high-rise complex in Dallas' Deep Ellum neighborhood hope to have the mixed-use project open by late 2019.
Westdale, KDC, StreetLights Residential and Vine Street Ventures are building the transit-oriented development at Good-Latimer Expressway and Pacific Street, across from DART's Deep Ellum commuter rail station.
The development is going up on land that investor Westdale has owned for over 20 years. Construction will surround the historic Knights of Pythias Temple, built in 1915 at Elm and Good-Latimer.

"The Epic will complement Deep Ellum and provide state of the art office space, residential and hospitality to the neighborhood, further contributing to Deep Ellum's resurgence and sustainability as Dallas' most unique urban neighborhood," Joe Beard, CEO of Westdale, said in a prepared statement.
Real estate investment and management firm Westdale is one of the largest and oldest property owners in the Deep Ellum district, between downtown Dallas and Fair Park.
Developer KDC, which is building Toyota's new West Plano headquarters and is the developer of Richardson's huge CityLine project, will build the 250,000-square-foot Epic office tower, which will have 10 floors of office space. The offices sit on top of a parking garage.
Designed by architect Perkins + Will, the Epic office tower will have a rooftop café and amenity deck with a fitness center. Retail space will occupy the ground level of the building, which will face a new internal street.
"This is one of the most unique projects KDC has ever undertaken, and we are thrilled to be working with Westdale on this special and exciting project," said Steve Van Amburgh, CEO of KDC. "Plus, the views of Deep Ellum and downtown Dallas are absolutely phenomenal."
Balfour Beatty is the general contractor for the office building. Commercial real estate firm CBRE's Dennis Barnes, Tommy Nelson and Kenzie Killgore are working on leases for the tower.
The landmark Knights of Pythias Temple, also known as the Union Bankers Building, will be converted into a 164-room boutique hotel called the Pittman Hotel.
"Considered one of the most distinctive buildings in Deep Ellum, we have been careful to keep its integrity intact as we adapt the space for 21st-century needs," said Jeff Cohen, CEO of Vine Street Ventures Inc., which is doing the hotel portion of the project.
"After sitting vacant for 20 years, we are honored to have the opportunity to bring this building back to life while keeping its rich history at the forefront so that guests can appreciate its transformation."
Vine Street Ventures also is working on hotel projects in Baltimore and Philadelphia.
Dallas' StreetLights Residential will build the 20-story apartment tower in the Epic project.
Steve Brown/Dallas Morning News

Monday, March 20, 2017

Trammell Crow Co. affiliate reaches major milestone on M-Line Tower in Uptown

An affiliated firm of Dallas-based Trammell Crow Co. has reached a major milestone in developing the new M-Line Tower along McKinney Avenue.
High Street Residential, in partnership with Principal Real Estate Investors, has officially topped out on the 20-story, 261-unit tower — meaning its reached its most vertical part of development.
The apartment tower at the northeast corner of McKinney Avenue and Bowen Street will also feature 11,636 square feet of ground floor restaurant space, including Cafe Express and Blue Sushi Sake Grill.

Upon completion, the tower will also be home to McKinney Avenue Transit Authority's new trolley barn, museum and executive offices.

High Street Residential Principal Joel Behrens said the development team is thrilled with the progress of the property and what this tower will mean to the neighborhood.

The developer will provide the transit authority with an allowance for a seventh trolley car, build-out allowance for the new space and new trolley tracks and a switch along Bowen Street.

Construction is slated for completion by the end of the year, with the first apartments available by July. M-Line Tower will begin pre-leasing apartments next month.

The luxury one- and two-bedroom apartments will include upgraded finishes with a number of community amenities, such as a resort-style pool, two-story fitness center, clubroom, outdoor living space, a business center and a rooftop sky lounge with views of the Dallas skyline.

Candace Carlisle/Dallas Business Journal.

DFW’s Job Growth Rate Is Highest In 12 Largest Metros

IRVING, TX—Las Colinas is home to a large skilled labor pool and has airport proximity which is attracting expansion-driven companies, including Exxon Mobil, Oracle, Microsoft, GM, Fluor, Citigroup, Goldman Sachs and Kimberly-Clark.
One of the office complexes with prominent corporate tenants is Royal Ridge.
IRVING, TX—The Dallas-Fort Worth metroplex is the nation’s fourth largest metro area, with a current job growth rate of 3.6%, which is the highest among the country’s 12 biggest metro areas. Within the metro, Las Colinas is home to 120,000 workers.
The area’s growing skilled labor pool and DFW proximity are attracting expansion-driven companies to the submarket. Large employers include Exxon Mobil, Oracle, Microsoft, General Motors, Fluor, Citigroup, Goldman Sachs and Kimberly-Clark.
One of the office complexes with prominent corporate tenants is Royal Ridge, owned and managed by Accesso Partners LLC. The four-building class-A portfolio totaling 505,948 square feet is situated on 45.6 acres at the intersection of North Belt Line Avenue and West Royal Ridge. The property is located just north of John W. Carpenter Freeway and President George Bush Turnpike, five miles from the Dallas-Fort Worth International Airport and the Las Colinas Urban Center.
“The fact is Dallas-Fort Worth continues to gain prominence and stature as a global city,” Abbey Rowsey, Accesso’s Dallas asset manager, tells “Couple that with the quality of this asset, the A-plus Las Colinas location, its proximity to the airport and Royal Ridge will continue to attract top-tier tenants.”
Accesso has appointed investment brokerage Eastdil Secured LLC to market the portfolio. Building floor plates range from 40,000 to 70,000 square feet and have an average of six per 1,000-square-foot parking ratio.

What's next for Dallas' skyline? Developer buys site, plans 40-story skyscraper

Developers have purchased property to build the first true downtown Dallas skyscraper in seven years.
Chicago-based Amli Residential bought the vacant block on Field Street just north of Ross Avenue.
The developer plans to build a more than 40-story apartment tower on the parking lot next door to the landmark Fountain Place office tower.
Deed records say that Amli's planned high-rise will have 367 rental units.
The nationwide apartment builder bought the building site from Fountain Place owner Goddard Investments. Goddard is currently building a parking garage and retail building on the east side of Fountain Place.
Dallas architect Page Southerland Page Inc. has designed the planned residential skyscraper for Amli. Early concepts show a slender, prismatic tower will compliment Fountain Place.
Amli's Taylor Bowen said construction on the apartment high-rise will start this summer.
Amli's Field Street tower would be the tallest downtown building started since construction began in 2010 on the 42-story Museum Tower condominium building in the Arts District.
The apartment project would be one of about a dozen high-rise residential buildings under construction in the Dallas area. It would be located a block south of Woodall Rodgers Freeway.

See Full Article Here

Steve Brown/Dallas Morning News

Friday, March 17, 2017

Dallas Housing and Commercial Notes

For the second year in a row, the Texas housing market hit an all time high for both prices and the number of properties purchased. Real estate agents sold 323,607 homes last year, up 4.4% from 2015. Median prices rose 7.6%. DFW home prices were up 9% and home sales of over 98,000 rose 5%, with more houses sold than in any other Texas metro area. The North Texas supply of available homes is 1.8 months, compared to the state’s 3.3 months.

According to a national study, DFW homeowners are spending an average of 15% of annual income for mortgage payments, less than the historical local average of 20%. Residents are spending about 30% for rent. Nationwide, homeowners spend almost 16% of monthly income to buy a home, the highest percentage in a decade

A new survey from Cushman/Wakefield shows the North Texas industrial market had 5.3 million sq.ft. net absorption in the 4th quarter, leading the nation. Tenants absorbed 23.7 million sq.ft. in North Texas last year, a 43% increase. Construction completions totaled 22.4 million sq.ft. at year end, 46% ahead of the prior year. Around 17 million sq.ft. of new industrial space is underway.

North Texas homebuilders started almost 30,000 new homes last year, more than any other market. A Chinese investor plans to increase that number through a $655 million investment with Serene County Homes to fund construction of 2,300 homes in Tarrant County’s Sendera Ranch community. The Puyin Blockchain Group of Shenzhen, China, wants to be “the leading developer of affordable housing in America”. The homes are planned to start at around $200,000.

Cash for campuses

Corporations sell their complexes and rent back space

Vernon Bryant/Staff Photographer
State Farm Insurance sold its CityLine campus in Richardson for $825 million to a partnership of South Korean and U.S. investors. It has signed a long-term lease to keep its offices there.
Want to buy a corporate campus? There are plenty to choose from on the market in North Texas.

New corporate facilities that house Raytheon, FedEx Office and Geico Insurance are all up for grabs.

Sales of these new business enclaves have been some of the biggest real estate deals in the Dallas-Fort Worth area in the last year.

“People are paying large amounts of money for these assets,” said Cushman & Wakefield’s Rick Hughes. “Well-located corporate campuses with good tenants and in good locations can go for $400 per square foot or more.”

Last year, some of the largest property trades in North Texas were corporate
campuses, adding up to more than $1 billion. The biggest deals included:

State Farm Insurance’s new four-tower regional office campus in Richardson sold for $825 million to a partnership of South Korean and U.S. investors. The insurer will continue to occupy the almost 2 million-square-foot project in the CityLine development on a long-term lease.

J.C. Penney sold its 1.8 million-square-foot headquarters campus in West Plano for more than $353 million to Dallas investors who will remodel the buildings. The retailer will downsize its operations into part of the 40-acre campus in Legacy business park, and the rest of the project will be rented to other companies.

Verizon sold its longtime 51-acre complex in Las Colinas for $344 million to Meisrow Financial of Chicago. Verizon will continue to occupy the 1.1 million-squarecommercial foot office campus on a longterm lease.

“The sellers of these properties are looking to monetize the real estate,” Hughes said. “These are nothing more than financial transactions.”

Upside for investors
Investors who buy big business centers are getting stable, long-term income, property brokers say.

“You have almost a bond type of investment with cash flows,” CBRE vice chairman Gary Carr said. “The value of the property is all about the creditworthiness of the building tenant.”

Carr said most of the companies rent back the office space for 10 or even 20 years.
“A lot of the businesses that are selling these want to invest the dollars they are getting in their core businesses,” he said.

CBRE is marketing several large North Texas corporate offices.

For several months, the real estate firm has been hunting for a buyer for Raytheon’s new twobuilding office campus in the CityLine project on the Bush Turnpike.

Almost 2,000 workers for the Massachusetts-based defense contractor are housed in the 500,000-square-foot project.

Also in Richardson, CBRE is seeking a buyer for Geico Insurance’s regional office center on Greenville Avenue. Last year, Geico moved about 1,600 people into the newly remodeled office complex east of U.S. Highway 75.

The insurance firm has leased the property through 2028 from the investment firm that renovated the Fossil office and warehouse buildings.

The new FedEx campus in Plano’s $3 billion Legacy West development is also up for grabs. Designed by architects HKS and HOK, the 265,000-square-foot project on Legacy Drive houses about 1,200 FedEx Office workers.

With D-FW office building prices at record levels, Carr wouldn’t be surprised to see more campuses hit the market.

“Corporates want to reinvest those dollars because the margins are higher in their core business,” he said.
‘Buying a bond’

Jonathan Napper of Eastdil Secured worked on the State Farm Insurance campus sale. He said the recent construction of several stateof-the-art business complexes in North Texas attracts investors’ interest.

Steve Brown/Dallas Morning News

Redevelopment Boom Brings Vibrancy Back To CBD

DALLAS—The CBD is comprised of approximately 30 million square feet of multi-tenant office space, and contains more class-A space than almost any other regional submarket at more than 20 million square feet.
DALLAS—Like many downtowns across the country, Dallas lost momentum in the 1960s as new freeways and affordable suburban middle-class homes sucked the growth out of the central business district. Many businesses followed as office buildings rose on the suburban prairies. Before the 60s were over, the city council tried to stop the outward tide by adopting the recommendations of urban planner Vincent Ponte, who designed a system of downtown tunnels and underground retail shops linking the major buildings.
Through the years, the tunnel system grew to more than 2 miles, according to ULI. It provided a convenient lunchtime amenity for downtown office workers but was blamed for choking off life and commerce on the street above. The result? A lonely feeling within the central core, which by 6:00 p.m., was devoid of bustling people or even a single pedestrian. Then-mayor Laura Miller said it was the worst urban planning decision that Dallas has ever made.
In recent years, the downtown tunnel system has become disjointed and de-emphasized as some landlords closed off tunnel connections, breathing an extra measure of life into downtown streets and sidewalks, learns. And today, the residential redevelopment boom has erased that unpopulated feeling. The newly revitalized downtown Dallas area is the epicenter of the city. The downtown commercial office market is generally defined by two primary submarkets, the CBD and Uptown/Turtle Creek.
The downtown CBD submarket is comprised of approximately 30 million square feet of multi-tenant office space, and contains more class-A space than almost any other regional submarket at more than 20 million square feet. Class-A product represents 75% of the total inventory. The Uptown/Turtle Creek submarket consists of approximately 11 million square feet of multi-tenant office space, with 87% classified as class-A product, learns.
Lisa Brown/Globe St.

Thursday, March 16, 2017


Deep in the heart of Texas, SXSW is big and bright. Last year the two-week festival generated $325M for Austin’s economy. More than just tax revenue and tourism, SXSW — running this year from March 6-19 — showcases the Texas capital, drawing companies from all over the world to open offices in its rolling hills.  

Though SXSW started as a music festival, over its 30-year history it has morphed into much more. It now features tech, film and comedy alongside the music. The transition has doubled the annual attendance in just over five years to about 140,000 annually. Visitors are liking what they see. During the peak of the dot-com boom, Silicon Valley was a net importer of Texans. Between 1997 and 2000, about 1,500 more households moved from Texas to the region than vice versa.

The trend changed. 2009 saw the single largest year-over-year attendance boost at SXSW Interactive, the tech component of the festival. Between 2009 and 2012, Silicon Valley lost roughly 1,430 households to Texas. While there are numerous factors that influence a household's or company's decision to relocate, firms rarely move somewhere their executives have never visited. It is more than coincidence that the shift from California to Texas coincides with the rise in prominence of SXSW Interactive, which featured keynotes from Wikipedia’s Jimmy Wales, Craiglist’s Craig Newmark and Facebook's Mark Zuckerberg during that time.

Austin is attracting major household names like Facebook, Samsung, Amazon and Apple, each of which moved 500 employees to the area in 2016. Austin has also become a major player in the startup space. Austin ranked No. 1 in the CNBC Metro 20: America's Best Places to Start a Business ranking in 2016. The proliferation of technology companies has led to the region's nickname, "the Silicon Hills," and spurred development that greatly expanded the city.

While one of the world’s pre-eminent marketing events for tech companies, SXSW does quite a bit of marketing for Austin itself. The State of Texas recognizes the opportunity SXSW presents for the area and the state. Last Saturday, Gov. Greg Abbott hosted a technology reception to court potential business. "You happen to be at ground zero for the future of innovation and especially where it intersects with technology," Abbott said. "If you have a vision, if you have a dream, if you have a work ethic to achieve that dream, there is no better place for you to be than in the Lone Star State right now."

 Low housing costs and plentiful local talent are major factors influencing relocation. The tech scene also has strong local support from the Austin Chamber of Commerce and other groups. Global real estate firm Savills recently used five metrics to determine Austin is the top overall tech city.

There is also the obvious boost to tourism and hospitality, a staple for the area. In 2016, SXSW directly booked 14,415 individual hotel reservations totaling over 59,000 room nights for SXSW registrants. Direct bookings by SXSW alone generated $1.8M in hotel occupancy tax revenues for the City of Austin. “SXSW continues to position Austin in the national spotlight and as a result, the Kimpton Hotel Van Zandt reaches an expanded customer base for the greater part of March,” said general manager Joe Pagone. “By embracing the creativity surrounding the conference, we are able to hit the affluent, tech-savvy target audience for our hospitality brand.”

The festival has had its issues. This year, a lack of Uber is giving visitors a headache as other ride-sharing alternatives crashed. The state’s controversial SB6 "bathroom bill" and SXSW’s own controversial immigration language in its contracts have raised concerns.

See Full Article Here

Kyle Hagerty/Bisnow

Flips in D-FW up 21%

Nationwide, trend in 2016 was at its highest level in nine years

House flipping is heating up in North Texas.

The number of houses purchased and quickly sold by investors rose almost 21 percent in Dallas-Fort Worth last year, according to a report by Attom Data Solutions.

Nationwide, home flipping was at its highest level in nine years, with over 193,000 properties sold. Home flips across the U.S. were 3.1 percent higher last year than in 2015.

Attom Data Solutions based its report on properties that were bought and resold within a year. The houses may have been purchased and remodeled.

“Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition, along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate,” Daren Blomquist, senior vice president at Attom Data Solutions, said in the report.

“The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016.”

Although home flips rose 20.9 percent in D-FW last year, North Texas still has a small number of the transactions compared with many markets.

Attom Data Solutions estimates that about 4 percent of residential transactions in the D-FW area were flips in 2016. That added up to about 4,246 properties.

Some of the hottest areas for home flips in 2016 were in metro areas in Tennessee, California and Florida.

Almost 12 percent of the home sales in Memphis were to flippers, Attom Data Solutions reported.

Homes across the country sold by flippers last year went for a median price of $189,900 — a gross profit of $62,624 above the original median purchase price.

Steve Brown/Dallas Morning News