Category: Focus December – 20

Structured Cable Products Takes 53,000-SF Dallas Space in Expansion and Relocation

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Looking to expand its hub in the Southwest Region, Florida-based Structured Cable Products Inc. has leased 53,496 square feet at Turnpike Distribution Center in Dallas to end a six-month search for significantly more space in the Interstate 30 corridor. The company is in the process of moving into Turnpike 11, located at 3665 La Reunion Parkway, Dallas, where it’s leased more than 44 percent of the project. Structured Cable is picking up nearly 22,000 square feet of extra operating space with its relocation from Arlington. Brock Wilson, senior vice president and managing partner of Dallas-based Bradford Commercial Real Estate Services, and Joe Santaularia, first vice president, represented Structured Cable Products in the site search and long-term lease negotiations. John Gorman of Holt Lunsford Commercial represented the landlord, Dallas Industrial TT LLC. The 1980s-era structure, totaling 120,466 square feet, was renovated in 2019. “We looked all over. This distribution center fit perfectly with our client’s requirements,” Wilson said. “The landlord was extremely easy to work with and gave concessions to further incentivize the deal.” The site search had focused on industrial buildings with clear heights ranging from 24 feet to 32 feet, an end cap position and ample dock doors. “This project hit all three of Structured Cable’s requirements,” Wilson said, citing the ability to stack pallets four high. Structured Cable is a leading global manufacturer and supplier of low-voltage cables and accessories for the commercial and residential markets. It also has manufacturing and distribution facilities in Florida, California and The Netherlands, which services the EMEA region.

Hartman Income REIT leased 3,967 SF to Constant Investments Inc. at 17300 N Dallas Parkway

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Constant Investments, Inc. dba Mortgage One Group leased 2,218SF at 17300 N. Dallas Parkway in Dallas, TX for 3 years. Julee Nguyen with Citiwide Properties Corp. represented the tenant and Noah Burns represented the landlord, Hartman Income REIT.

S.I. Warehousing Takes More Than 250,000 SF in New Houston-Area Warehouse

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Molto Properties has signed a 252,203-square-foot lease with S.I. Warehousing Co., Inc. at its Monument Business Park development in Deer Park, Texas. S.I. Warehousing, a subsidiary of Slay Industries, provides customer-focused distribution, packaging, transportation, and warehousing services in the Houston area. David Munson of Boyd Commercial represented Molto Properties, while Kelley Parker, Coe Parker, and John Littman with Cushman & Wakefield represented S.I. Warehousing Co. in the transaction. The lease was executed prior to the completion of the Business Park and takes up 41 percent of the site’s available square footage. The Monument Business Park project broke ground in Q4 2019 and recently delivered a 414,900-square-foot, cross-docked, and a 194,610-square-foot front-load building at the end of October 2020. Each facility is designed to accommodate single or multiple tenants with best-in-class features including ample trailer parking, 32- to 36-foot clear heights, efficient circulation drives, LED lighting, ESFR sprinkler systems, and abundant loading doors. “We’re pleased to welcome S.I. Warehousing to our latest project in Deer Park,” said Chad Parrish, vice president of Molto Properties. “Monument Business Park’s premiere location and accessibility to the Port will continue to attract a wide variety of users. Now that we’ve delivered the first phase of the project, we look forward to leasing the remaining 357,307 square feet in the coming months.”

Commercial and Multifamily Mortgage Delinquency Rates Continue to Vary by Property Types and Capital Sources

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WASHINGTON, D.C. (December 10, 2020) – Commercial and multifamily mortgage performance remains mixed, revealing the various impacts the COVID-19 pandemic has had on different types of commercial real estate, according to two reports released today by the Mortgage Bankers Association (MBA). The summary of findings come from MBA’s November Commercial Real Estate Finance (CREF) Loan Performance Survey and the latest quarterly Commercial/Multifamily Delinquency Report for the third quarter of 2020. The CREF Loan Performance Survey was developed to better understand the ways the pandemic is impacting commercial mortgage loan performance. MBA’s regular quarterly analysis of commercial/multifamily delinquency rates is based on third-party numbers covering each of the major capital sources. “Commercial and multifamily mortgage delinquency rates remain mixed, varying dramatically by property type, and therefore by capital source,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Much of the stress in the market is driven by loans, predominantly for lodging and retail properties, that became delinquent in April and May and have now transitioned to later-stage delinquencies. November did see small increases in newly delinquent retail, lodging and office loans, but at levels far below what was seen at the outset of the pandemic.” Added Woodwell, “Different capital sources calculate delinquency rates in different ways, and those differences can cloud comparisons. Looking to 2021, widespread vaccinations should help the economy and commercial real estate – especially the hard-hit retail and leisure and hospitality sectors – start to recover at a faster pace by mid-summer. Between now and then, much will depend on how long the current surge lasts, and the degree to which it holds back economic activity.” Click to read more at www.mba.org.

Tesla’s Elon Musk Could Save Billions in Move to Texas

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Elon Musk said he moved to Texas because he was fed up with California’s COVID-19 response and to be closer to his Tesla and SpaceX facilities in the Lone Star State. But there could be another reason for Musk’s big move: avoiding California’s capital gains taxes. Musk — the CEO of California-based Tesla and SpaceX — this year became the world’s second-richest man with a net worth of $157 billion, mostly from his roughly 20 percent stake in Tesla. The electric automaker’s stock has skyrocketed 700 percent over the past year to $608 a share, up from $67 a share a year ago. Tesla’s market value on Wednesday morning hit a record $653 billion, earning Musk stock options from his 2018 compensation package that are now worth nearly $18 billion. If Musk sold his Tesla shares as a California resident, he would be subject to the Golden State’s capital gains tax of 13.3 percent on top of the federal capital gains tax of 20 percent. The California capital gains tax on his $18 billion of stock options in Tesla would amount to a charge of nearly $2.4 billion. However, as a newly-minted Texan, Musk can save billions of dollars in capital gains taxes if he decides to sell some of his Tesla stock. Texas is one of nine states that doesn’t have a capital gains tax. Musk has not taken a salary from Tesla, so he was not responsible for paying any California state income taxes, which can be as high as 10 percent. Tesla did not immediately respond to a request for comment. Click to read more at www.chron.com.

Meet the Emerging Leader Addressing the Racial Divide in Commercial Real Estate

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Woodbine Development Corp. Managing Partner Dupree Scovell is using his influence to start some uncomfortable conversations. Here’s why.

BY BIANCA R. MONTES PUBLISHED IN D CEO DECEMBER 2020 PHOTOGRAPHY COURTESY OF WOODBINE DEVELOPMENT CORP.

An emerging leader in commercial real estate, Dupree Scovell has spent the past few years working behind the scenes with his brother King to grow and diversify Woodbine Development Corp. The company was founded by his father, John Scovell, and oil icon Ray Hunt in 1973. With projects across the country, mostly in the hospitality space, it’s best known locally for changing the Dallas skyline with the Reunion Tower and Hyatt Regency Dallas at Reunion. Its portfolio, valued at about $1.75 billion, includes more than 8,000 hotel rooms, 4.3 million square feet of office space, and more than 1 million square feet of special event venues, plus numerous spa, golf, and fitness projects. The brothers’ new approach has set up Woodbine to weather a downturn spurred by a global pandemic and secured capital for struggling assets. Click to read more at www.dmagazine.com.