Saturday, January 31, 2015

Four Seasons Changing with New Owner

The home of the annual Byron Nelson Championship Golf Tournament has changed owners.
Blackstone Real Estate Advisors has purchased the Four Seasons Resort and Club Dallas at Las Colinas for an estimated $150 million.
The New York-based real estate investor is expected to make improvements to the 431-room luxury golf course hotel, conference center and spa in Irving.

CW Capital was the seller of the property that had been foreclosed on in 2010.

Tuesday, January 27, 2015

Turnkpike West Warehouse Building Breaks Ground

Holt Lunsford Commercial broke ground Wednesday on a 259,672-sf warehouse building at I-30 and Chalk Hill Rd. on the city's south side.

The freestanding, single-tenant Turnpike West building will have a secured trailer lot with 72 slips.

Cadence McShane is the general contractor, and Pacheco Koch is the civil engineer. RGA Architects is also on the project team.

465,703-SF North Texas Office Trio Trades Hands

DALLAS (HFF) – DRA Advisors LLC has purchased a three-building North Texas office portfolio totaling 465,703 sf. The seller was Harbert Management Corporation.

The 165,434-sf 5000 Quorum Dr. building is on 4.5 acres between the Dallas North Tollway and Inwood Rd. in Dallas. It has seven stories and is 77.2 percent leased.

At nine stories and 181,737 sf, Quorum Place is the largest of the three buildings. The 78.2 percent leased building is on 5.4 acres at 14901 Quorum Dr. in Addison, north of the 5000 Quorum Dr. property.

Also in Addison is Quorum North, located at 13201 Spectrum Dr. It is on 2.8 acres northeast of the other two properties. The 118,532-sf, five-story building is 75.7 percent leased.

Stockdale Investment Group buys NorthPark-adjacent shopping center

Submitted art
The 20,384-square-foot property at 7835 and 7839 Park Lane near NorthPark Center at Park Lane and North Central Expressway includes tenants such as Citibank, Panera Bread, J's Tailor, Sona Med Spa and Buca Di Beppo.

Stockdale Investiment Group, a Dallas-based, family-owned-and-operated real estate investment firm, has bought a NorthPark-adjacent shopping center on Park Lane. It is the company's latest acquisition in a series of investments in retail property.

Terms of the acquisition from seller, Park Lane Partners & Skillman Oram Partners LP, was undisclosed.

The 2.6-acre, 20,384-square-foot property at 7835 and 7839 Park Lane near NorthPark Center at Park Lane and North Central Expressway includes tenants such as Citibank, Panera Bread, J's Tailor, Sona Med Spa and Buca Di Beppo.

"The property benefits from its close proximity to NorthPark, one of the most productive retail centers in the country," said Joe Pastora, a partner at Stockdale Investment Group. "We are looking forward to the continued success of our tenants."
Last year, the 31-year-old group bought The Shops of Highland Park, an iconic retail property that has been in operation for more than 70 years. In the past few years, Stockdale has spent $75 million acquiring properties off Knox-Henderson, Preston Center and Uptown.

Stockdale currently doesn't have any renovation plans for the Park Lane retail center, which is 100 percent occupied. The property fit well into Stockdale's strategy of purchasing and operating high-end urban retail centers in North Texas, Pastora said.

"We plan to continue investing in core real estate assets in highly-desired Dallas neighborhoods," he said.
Staff Writer-Dallas Business Journal

Power Players: Bill Hutchinson and his investors have a grand plan for the Dallas Design District

Jake Dean
Bill Hutchinson in his Dallas home
William "Bill" Hutchinson landed the deal of a lifetime when he bought the iconic Dallas Design District.
The 33-acre, 700,000-square-foot area includes the 7.5-acre Decorative Center complex at Oak Lawn and Hi Line, the 18-acre Dallas Design Center on Stemmons Freeway, along with dozens of retail and showrooms.
Hutchinson, president of Dallas-based Dunhill Partners, cobbled together a group of high-profile investors — including Tim HeadingtonRay Washburne and Newt Walker — to take on the legacy development, which is expected to bring a high-rise residential tower and a boutique hotel to the neighborhood.
"This was a big acquisition for me," Hutchinson said in an interview at his home in Turtle Creek. "It was the largest acquisition that Dunhill Partners has done to date, and yet, I look at it like a small project. The Design District is a tight neighborhood south of Interstate 35E near a budding downtown and Uptown Dallas, which are two areas that are exploding."
The longtime retail real estate investor purchased the district from Houston-based Lionstone Investments and Dallas-based PegasusAblon. The investment group, which bought the property in 2007, transformed the area into an eclectic mix of eateries, retail and high-end apartments — a far cry from its former use as an industrial and commercial zone.
Hutchinson plans to spend $5 million on capital improvements and urban planning of the neighborhood.
He gives us the story of how he acquired the property and his plans for the neighborhood:
How did you come to buy the Design District? I am so proud that Dunhill Partners was chosen as the buyer. It's going to be one of my biggest jobs over the coming years. There's still a lot of work to do. The previous owners did a fabulous job, taking it from where it was a sleepy part of town with no residents or restaurants or evening activity and turning it into a hot, vibrant area. I will complete that vision. There are five great restaurants there, including FT33 — one of the few five-star restaurants in Dallas — and now there are over 2,000 people that live in the Design District. People fly here from Latin America and Europe. When I was doing my due diligence, I saw that Laura Bush was shopping there. I've bought a lot of properties in my career, but I've never seen a president's wife shopping in one of the stores.
How did you get started in real estate? Fortuitously, I did not get offered a job when I graduated from SMU. I saw an ad in the newspaper for a $1,000-a-month draw to work at a retail company — commission only — to lease space in shopping centers. I was given a phone and phone book and told to get to work. I made a game out of it, matching properties with tenant's needs. I got good at it and after two years I decided to open my own company and that's how Dunhill Partners was born. I invented the name Dunhill Partners. I wanted a name that sounded old and stable and wealthy, like it had been around forever instead of a broke kid that just got out of SMU and it worked. People identified with Dunhill Partners and we were immediately accepted.
Have you always been in Dallas? I grew up in Monterrey, Mexico. My parents were missionaries and I was 6 years old when they moved from Detroit to Monterrey. I loved living in Mexico and I speak Spanish fluently, which comes in handy in the Dallas real estate community. When I graduated from SMU, I thought I'd head back to Mexico, but there were no jobs. That's when I jumped into Dallas real estate. It's such a pioneering place where anyone can become anything here. We are so business friendly. We don't have a 'good old boy' network. You can come in as an outsider and as long as you work hard and are honest, you can become anything in this town.
What was your big break in real estate investment? It was buying Lincoln Square in Arlington. As chance would have it, the broker that believed in me was Jack Crews, who later sold me the Design District. Lincoln Square was a very large acquisition for me at the time. I believe it was $35 million, which was three times larger than anything I bought up to that point. We did extremely well, and I believe we ended up selling it last year for $71 million. After that, I was on the map for big properties and the brokerage community knew who I was.
What are your future plans for the Design District? If you look at everything that's happened to Uptown in the last several years, you see it's very urban with high-rises. The land values in Uptown have gone up from under $100 a square foot to — in some cases — over $300 a square foot. Dunhill is negotiating right now with residential developers and restaurant operators throughout the country. We don't want to dumb it down with chain restaurants. We are also talking to boutique hotel operators. I also want to bring public art, landscaping, good signage and awareness to the Design District.
Staff Writer-Dallas Business Journal

$55 million redo of historic Braniff building at Dallas Love Field ready for full council vote

The Flying Crown-Good Fulton & Farrell proposed redo for the old Braniff building. Haven't seen Reed Enterprise's plans yet, outside of the model seen in both proposals.
The Dallas City Council’s Economic Development Committee spent almost an hour this morning discussing the old Braniff building at Dallas Love Field, which Ford dealer and private-plane salesman Randall Reed intends to save and redevelop at the cost of more than $55 million. Council members had myriad questions, among them: Is this reallythe best deal for the city? How much noise and traffic along Lemmon Avenue will this pile on neighbors already struggling with the recent influx of passengers and planes arriving with the end of the Wright Amendment? Are there others interested in redeveloping the building? And, what makes the rotting structure so historic and worth saving, anyway?
But in the end, all agreed to send the deal to the full council for a vote, lest the property continue to sit vacant and rot and wind up costing the city a small fortune to prop up and remediate.
Per the deal going to council, Reed Enterprises will spend $35 million on “aviation use” within the next three years, and another $20 “for commercial use within 60 months.” Reed Enterprises won’t have to pay rent for the first 10 years, after which rent will run around $1.3 million a year. Reed Enterprises is promising the creation of some 1,100 jobs. Reed will also pay to remediate the site, unless something significant pops up unexpectedly.
“In the ’50s and ’60s, concerns about environmental impacts were not as significant as they are today, and folks tended to dump things out the back door,” the city’s director of aviation, Mark Duebner, told the council. “There may be some unseen and unknown things the city would have to clean up.”
Duebner also made it very clear to the council: For years people were interested in the property, which takes up some 26 acres along Lemmon. Duebner said he could recall about 10 solicitations just since 2011, when he took over as aviation director. They were inevitable, he told the committee: It’s a big piece of property far below market value due to its proximity to the city-owned airport and copious environmental issues. Duebner said not one of the submitted offers was “viable” until Reed approached the city in 2012 via a broker and began discussing the mixed-use development focusing on car and private-plane sales with attached office space and retailers.
Clint Grant/Staff photographer
Click to enlarge: A Braniff ground technician was killed and six others injured when the DC-C7 airplane, being taxied for final overhaul checks, slammed into the Braniff maintenance building at Dallas Love Field in September 1960.
Initially, Reed and the city intended to raze the structure at the cost of $8 million to the city. In November 2012 the council agreed to lease the land to Reed. But the lease was never executed. Meanwhile, preservationist raised hell about demolishing Braniff’s 1958 structure designed by the Los Angeles architectural firm Pereira and Luckman so closely tied to the future development and identify of Love Field. As our Mark Lamster wrote last year, “In the coming years, the design-forward carrier would use the building — known as Braniff Operations and Maintenance Base — to position itself as the defining airline for the modern jet-setter. That included a graphic identity by architect Alexander Girard, superchic uniforms by the Italian designer Emilio Pucci and a series of planes painted with whimsical abstractions by the artist Alexander Calder. Braniff promised the ‘end of the plain plane,’ and it was here that the reinvention happened.”
In the end, the Texas Historical Commission and the Federal Aviation Administration agreed, and signed off on saving the structure after an environmental assessment study was completed last October. (Council member Jerry Allen is skeptical about the building’s historical significance. “I’m not an architect kind of guy,” he said, referring to the building’s designers. “How famous are they? What else have they done? The Eiffel Tower?”)
This Good Fulton & Farrell model of the proposed Braniff building redo shows up in two very interesting places.
Flying Crown Development, which had been interested in preserving the building three years ago, maintains that Reed’s plan is just Flying Crown’s plan. Council members Adam Medrano and Jennifer Staubach Gates asked Duebner why the city wasn’t taking other offers, when clearly there are other interested parties — well, one, at least. Medrano asked Duebner if he thought the city could get a better deal by issuing as request for proposals.
“We think this is a very good deal for the city,” Duebner said. He told the council that it already had a deal in place with Reed, and that showing off his new proposal would give other interested parties an advantage at this late date. Others, he said, could just “mimic what they’ve done and beat it by a buck.” To issue an RFP at this point, said Duebner, would likely mean losing a partner. Reed Enterprises, he said, would likely “feel like they don’t want to deal with the city anymore.” The city has a duty “to protect the developer,” he said.
Flying Crown’s managing director Stephen Birch says via email that “we are confident in delivering our proposed 1,242 jobs created with over $63.8MM in annual payroll, an overall project investment in City owned property of $84.4MM, an additional $4.2MM annually to the City General Fund, involving Dallas companies for every aspect of design and construction, and engaging the community in developing a project the entire city can be proud.” City officials say Flying Crown’s proposal is too dependent on state and federal tax breaks and incentives that, even if ultimately approved, could delay the project for decades. Duebner says Reed Enterprises is ready to go pending the council vote and the finalization of construction plans.
In the meantime, the city will also have to go searching for more than 800 parking spaces for airport employees that will disappear with the redevelopment. Duebner said that will likely involve some future land acquisition.
“The real benefits to this is continuing the development of Dallas Love Field and its positive impact for the city,” he told the council. “[I'm] excited there is a way to save this building and remove something that has been vacant, that is unused.”

Friday, January 23, 2015

CBRE Acquires United Commercial Realty (UCR)

DALLAS--On Friday, CBRE Group Inc. announced that it had acquired United Commercial Realty (UCR), the Dallas-based commercial real estate firm which specializes in retail services.’s Anna Caplan recently asked Michael Caffey, CBRE’s executive managing director/Texas region, five questions about the deal. Why was UCR so appealing?
Caffey: UCR is the retail industry leader in Texas and is seen as one of the most innovative and successful retail real estate advisors in the country. Their professionals are well known for their first-class service, creative marketing and exceptional client outcomes. They share our corporate values and are a great fit with our culture. What does the acquisition mean for your day-to-day operations?
Caffey: Integrating the UCR team into the CBRE family will allow both of us to meet the needs of our clients more comprehensively and in more markets. This will be a big win for everyone, especially the clients we serve. How will UCR's strengths benefit CBRE?
Caffey: Joining with UCR will allow us to build further advantage for our retailer and retail investor clients in Texas as well as across the country.  This acquisition supports CBRE’s goal to become the premier retail real estate service firm in the country. In what ways are you excited (personally, professionally) about this merger/acquisition?
Caffey: Personally, I have great admiration for Mickey Ashmore [CBRE’s new vice chairman, retail services] and Scott Weaver [CBRE’s new senior managing director, asset services]. I’m looking forward to the opportunity to work more closely with them as we continue to build on the CBRE retail platform. What does the future hold for CBRE in Texas? 
Caffey: We have and will continue to support the growth of CBRE in Texas, as this regional economy is one of the strongest in the U.S. We have market-leading teams made of the most talented professionals in the industry in place in Austin, San Antonio, El Paso, Houston, Fort Worth and Dallas. As such, we are well positioned to serve our valued customers in Texas.
By Anna Caplan | Dallas/Fort Worth

New homes are downsizing to keep a lid on costs

The average new home built in the U.S. last year was about 20 square feet smaller than in 2013.
“After rising for four consecutive years, it began to recede in 2014,” said Rose Quint, a researcher with the National Association of Home Builders. “It went down to 2,642 square feet.
“I think the average home size will likely continue to recede in 2015,” Quint said at the builders association’s annual show in Las Vegas.
New homes on average are still about 25 percent larger than they were in the mid-1990s. And for a few years it looked like the American home would continue to be plus size, with more bedrooms, garages, media rooms and the like.
Quint said market factors are now putting a ceiling on home size growth.
In recent years most of the houses built across the country have been designed for more affluent, repeat buyers.
As young, first-time homebuyers come back to the market, average new house sizes will decline, she said.
“We are going to have more young people — first-time buyers — entering the housing market in 2015,” Quint said. “They are going to want smaller homes that cost less money.”
Those younger buyers say they are not interested in pricey features like outdoor kitchens, media rooms and fireplaces.
Dallas-Fort Worth homes have already seen big increases in size and price.
“From 2010 to 2014, the median new home price in D-FW has climbed from $213,000 to $285,000, an increase of almost 34 percent,” said Ted Wilson of Residential Strategies Inc. “During the first part of the D-FW housing recovery, as mortgage rates declined, very clearly buyers were purchasing more expensive homes with larger square footages.”
Higher construction and land prices have been putting pressure on the cost of a new home in North Texas, Wilson said. “As a result, the square footages are flat to down.”
Steve Brown - Dallas Morning News

Baby boomer homebuyers are boosting builders’ business

I’m having a hard time getting my head about being a target market.

Except for hair dye and cholesterol blockers, folks my age don’t get a lot of attention from Madison Avenue.
The last time mass marketers considered me their prime demographic, it was for sales of eight-track tapes.
So I’m surprised by the love I’m getting from the nation’s $400 billion residential construction industry.
Turns out that over-55 Americans are the one of the largest and fastest-growing segments of the new home market.
“We thought that as soon as the housing industry started to recover this segment would take off in a very strong way,” Sharon Dworkin Bell, senior vice president of the National Association of Home Builders, said at the industry’s annual meeting in Las Vegas. “We have definitely seen that increase in the last year.
“We expect these buyers to continue to be a big share of the home market.”
For 2015, Americans 55 and older are likely to account for 44 percent of households. And by 2020 that share will rise to about 47 percent, housing economists forecast.
“It’s growing not just in absolute numbers but as share of all U.S. households,” said Paul Emrath, a research vice president with the Washington, D.C.-based builders association. “Those people have wealth, and that wealth makes this segment of the market attractive to many builders.”
Chris Porter, chief demographer with John Burns Real Estate Consulting, said that there are about 89 million Americans over age 55. They represent more than half of current homeowners.
“It’s a very, very rapidly growing group,” Porter said. “It’s ramped up in the last decade as baby boomers have reached this age.
“One of the reasons it continues to grow is they aren’t dying off as rapidly,” he said. “We are living longer and longer, and people are also working longer.”
Porter said that new home purchases by older buyers were delayed during the recession.
“Now they are ready to buy,” he said. “They have been waiting for the equity to return in their current homes.
“The challenge is they can’t find what they are looking for,” Porter said. “They want different layouts and new features and changes in location.”
And with existing housing inventories running short in many parts of the country, boomer buyers are more likely to be hunting for a newly built home.
“This is the story of the baby boomer,” said Tim McCarthy, a Pennsylvania homebuilder who’s vice chairman of the builders association’s 55-plus housing council. “They started arriving in our office about three years ago. Now it’s a tidal wave.”
McCarthy said that when one of his boomer target communities recently opened its doors, he sold 68 new houses in the first hour.
“The demand right now is overwhelming,” he said. “The challenge is to keep up with the production of homes.”
Steve Brown - Dallas Morning News

Texas adds 45,700 jobs in December, 457,900 for the year

Reports from the Texas Workforce Commission show the state gained 45,700 jobs in December, marking 51 straight months of employment growth. Riding that trend, Texas' unemployment rate fell to 4.6 percent for the month – the lowest rate since May 2008.
The professional and business services industry lead December's job growth, adding 14,800 positions. Education and health services grew by 6,800 positions and construction expanded by 5,100 jobs.
"The state's steady job growth is great news for Texas workers," said Ronnie Congleton, TWC commissioner representing labor. "We continue to work with our local Workforce Solutions partners to strive for an environment where there is a good-paying job for every Texan who wants one."
Unemployment for Dallas-Fort Worth-Arlington dropped to 4 percent in December, down from 4.6 percent in November and 5.5 percent in December 2013.

Korri Kezar - Dallas Business Journal

Generation Y Prefers Suburban Home Over City Condo

New Survey Shows 66% of Millennials Want to Live in the Suburbs

Karla Kingsley and Matt Chwierut chose a single-family house in a neighborhood in Portland, Ore., based on its proximity to the city center.ENLARGE
Karla Kingsley and Matt Chwierut chose a single-family house in a neighborhood in Portland, Ore., based on its proximity to the city center. PHOTO: AMANDA LUCIER FOR THE WALL STREET JOURNAL
Some demographers and economists argue that the preference of millennials, also called Generation Y, for city living will remain long lasting. And surveys of these young urban residents have tended to show that they don’t mind small living quarters as long as they have access to mass transit and are close to entertainment, dining and their workplaces.
But a survey released Wednesday by the National Association of Home Builders, a trade group, suggested otherwise. The survey, based on responses from 1,506 people born since 1977, found that most want to live in single-family homes outside of the urban center, even if they now reside in the city.
“While you are more likely to attract this generation than other generations to buy a condo or a house downtown, that is a relative term,” said Rose Quint, the association’s assistant vice president of survey research. “The majority of them will still want to buy the house out there in the suburbs.”
The survey, which was released at the association’s convention in Las Vegas, found that 66% want to live in the suburbs, 24% want to live in rural areas and 10% want to live in a city center. One of the main reasons people want to relocate from the city center, she said, is that they “want to live in more space than they have now.” The survey showed 81% want three or more bedrooms in their home.
The preferences of millennials are important to nearly every U.S. industry because of their size, which is estimated at between 70 and 80 million.
Not since the baby boomers, a generation that counts roughly 76 million people, has there been such a big population bulge.
For home builders, the survey results carry particular importance.
“The preference for the suburbs suggests that future demand will be in the form of single-family homes rather than condominiums more prevalent in cities,” said David Berson, chief economist with Nationwide Insurance Co. “That’s also good news for future suburban single-family sellers, many of whom are baby boomers.”
The survey results, though, could be skewed because they included only millennials who first answered that they bought a home within the past three years or intended to do so in the next three years. That excluded young people who intend to rent for many more years, which is a large and growing group, in part because of hefty student debt and the tight mortgage-lending standards of recent years.
The homeownership rate among heads of household 35 years of age or younger was at 36% in last year’s third quarter, the most recent data available. That is the lowest figure since the Commerce Department started tracking the data on a quarterly basis in 1994 and well short of the recent high of 43.1% in the third quarter of 2004.
Another factor leading to fewer young people buying homes is that women are waiting until later in life to have their first child. The average age of a mother at her first childbirth was 25.4 years in 2010, up from 22.7 in 1980, federal statistics show.
Stockton Williams, executive director of the Terwilliger Center for Housing at the Urban Land Institute, a nonprofit research group, said that many millennials still don’t have the financial resources to buy a home in the aftermath of the recession.
“There may be a strong interest, but there might also be a recognition that, at least for some, the opportunity to own a home might have to wait,” he said.
Some millennials said that they prefer to live in a house, but still enjoy living close to the city center.
When Karla Kingsley, a 32-year-old transportation consultant, and her fiancĂ© bought a single-family home last month in Portland, Ore., for $375,000, she said the couple’s top priorities were finding a home close to restaurants, shops and their workplaces downtown.
“That was most important to us, to be able to walk to things from our house and to bike to work,” she said.
Kent Piacenti, a 33-year-old commercial litigation lawyer and his partner, took a similar approach when they bought a three-bedroom home less than four miles from downtown Dallas this month. The couple, who previously rented an apartment downtown, wanted more space for their two dogs and a pool.
“My absolute preference is to be as close to the city center as possible to be near work and near friends,” Mr. Piacenti said. “Our entire work and social network is in the city center.”
Kris Hudson at

Big price gains, short supply set tone for Dallas’ housing market

The Dallas area had one of the biggest home price increases on record in 2014.

Average prices rose 12 percent from 2013 levels in the 46 areas The Dallas Morning News analyzed for a year-end comparison.
The biggest price gains were in several southern Dallas County residential districts — including Wilmer-Hutchins, Southeast Dallas, Lancaster and Oak Cliff — where single-family home sales prices rose by more than 20 percent, according to data from the Real Estate Center at Texas A&M University.
Prices jumped at double-digit percentage rates in more than half of the areas.
Housing analysts and longtime sales agents don’t expect last year’s high home price appreciation rates to continue indefinitely.
“I can’t imagine we will see the kind of appreciation we have seen over the last couple of years,” said Rich Thomas, executive director of the MetroTex Association of Realtors. “I think things will level out a little bit.
“But overall I think we will see much of the same in 2015 as we saw in 2014,” Thomas said. “It’s still going to be a tight market.”
A shortage of houses for sale in the Dallas area has combined with robust economic growth to create the current housing crunch.
There’s only about a two-month supply of preowned homes listed for sale with Realtors in the area. A normal market is about six months of inventory.
“Inventory is still at an all-time low,” said Mary Frances Burleson, CEO of Dallas’ Ebby Halliday Realtors. “I just wish we had more homes.
“People are not rushing to put their house on the market and sell it,” she said. “Every time I go to a sales meeting we talk about inventory and what to do.”
Because so few houses were available, Dallas-area home sales were basically flat in 2014 compared with the year before. The largest sales increases were in Lancaster, Ellis County, Wylie and Euless.
Home sales fell in about half of the residential areas, with the largest declines in affluent neighborhoods with scare supply, including North Dallas, the Park Cities and Southlake.
“I think 2015 will be another good year for smart agents who can get the listings,” said Virginia Cook, CEO of Dallas’ Virginia Cook Realtors. “I think buyers realize that one day mortgage rates will go up, and it could be a substantial increase.”
Current low home finance rates have motivated some potential buyers, said David Brown who oversees the Dallas office of Metrostudy Inc.
“With rates down, it’s causing people to get into a rush,” Brown said. “Buyer traffic is up substantially, and earlier than normal.”
Analysts and some sales agents are predicting that home price gains will slow in the Dallas area this year.
“I think prices have leveled off, and the hip pocket listings aren’t selling like they were,” said Dallas agent Allie Beth Allman. “The sellers are worried about the oil market.
“Residential real estate is driven by emotion and fear.”
By Steve Brown/Dallas Morning News

3 Quorum Drive Buildings Close in North Dallas

HFF has closed the sale of and arranged acquisition financing for a three-building office portfolio totaling 465,703 square feet in North Dallas.
Ala.-based Harbert Management Corp. New York City-based DRA Advisors LLC purchased the asset.
The portfolio consists of 5000 Quorum Drive in Dallas, and Quorum Place and Quorum North in Addison. Situated on 4.5 acres between the Dallas North Tollway and Inwood Road, the 165,434-square-foot 5000 Quorum has seven stories and is 77.2 percent leased. At nine stories and 181,737 square feet, Quorum Place is the largest of the three in the portfolio. The 78.2-percent-leased building is situated on 5.4 acres at 14901 Quorum Drive, north of the 5000 Quorum Drive property. Quorum North, located at 13201 Spectrum Drive, is situated on 2.8 acres northeast of the other two properties in the portfolio. At 118,532 square feet, the five-story, 75.7-percent-leased office building is the smallest in the portfolio.   By Anna Caplan

Thursday, January 08, 2015

Main Street tower in downtown Dallas gets new owner who plans makeover

A local entrepreneur who has already pumped millions of dollars into the downtown Dallas restaurant scene is now making a play in the office market.

FAQ Capital LLC headed by Mike Hoque has just purchased the 27-story Adolphus Tower on Main Street with plans to redevelop the building into first-class offices and restaurant space.
The 181,000-square-foot, 60-year-old office tower is about 70 percent leased to a variety of business and retail tenants. Major tenants include WhichWich’s corporate headquarters, the State of Texas, The Berry Law Firm, Mathis & Donheiser Law Firm and consulting firm Litzler, Segner, Shaw & McKenney.
The new owners plan to give the high-rise a new exterior plus rebuild the ground floor for restaurant and retail tenants.
Buyer Hoque’s DRG Concepts has developed a string of popular downtown restaurants including Dallas Chop House, Dallas Fish Market and Wild Salsa. He’s credited with significantly boosting the downtown restaurant market.
His Hoque Global firm is also in transportation, meeting planning and other businesses.
“We have admired the Adolphus Tower since our entry into downtown with Dallas Fish Market in 2007 opening in the historic Kirby Building at Main and Akard,” Hoque said Tuesday.  “With an ideal location and scale, Adolphus Tower will become an even more exciting downtown Dallas anchor in providing modern office space, and quality of life amenities for business and residents with a vibrant and expanded retail and restaurant mix.”
Hoque said he’s been working with Dallas developer Jack Matthews who did the Omni Hotel to better understand the downtown market.
“This is not something I just woke up and decide to attack,” he said.
After renovating Adolphus Tower, Hoque said he plans to target the offices to technology firms and business entrepreneurs.
Construction will start sometime during the next three months.
Hoque has hired Dallas architect 5G Studio Collaborative to handle the redesign of Adolphus Tower.
“We are looking at different sources of exterior lighting,” he said. “In the next few weeks we will be looking at finalizing the design.”

(DMN archives)
A 1955 advertisement touted the new Adolphus Tower.
The building’s mechanical systems will also be reworked.
FAQ Capital bought the tower from a partnership set up by Henry S. Miller Co., which had owned the building since 2005.
Darrell Hurmis with Henry S. Miller Brokerage and Jonathan Diamond of United Commercial Realty brokered the sale. Terms of the transaction were not disclosed.
Adolphus Tower was built by the famed Dallas developer Leo Corrigan. He also owned the landmark Adolphus Hotel next door.
The office building was originally supposed to be 50 stories tall but it was impractical to construct a building so tall on such a small site. The $7.5 million project was designed by noted Dallas architect Wyatt C. Hedrick, who also did many prominent 1950s projects.
It was touted as “the most modern office building in the Southwest.”
The original exterior of Adolphus Tower was done in gray aluminum panels, which were replaced with stucco in the 1980s.
The renovation of Adolphus Tower will be just the latest in a series of high-profile building redevelopments on Main Street in Dallas’ old financial district.
“The Adolphus Tower at Main and Akard is a premier downtown location and important project in the Main Street district,” said John Crawford, CEO of the economic development group Downtown Dallas Inc.  “In addition to adding and expanding restaurants, the decision to purchase Adolphus Tower and invest in improvements shows [Hoque’s] continuing commitment to downtown.”
By Steve Brown, Dallas Morning News