Category: News & Market Reports

NAI Investment Fund Rebrands as Partners Capital, Cementing Place as Key Player in Texas Commercial Real Estate Market

Posted on by Sarah

Houston, TX, October 12, 2020 – The investment arm of NAI Partners—one of the top-five largest privately-held, full-service commercial real estate firms in Texas—today announces its new name: Partners Capital. The business entity was previously known as the NAI Investment Fund. Partners Capital remains a wholly-owned subsidiary of NAI Partners. “Today is an incredibly exciting day for us,” said Andrew Pappas, Head of Partners Capital and shareholder at NAI Partners. “Partners Capital represents the evolution of our investment platform and our team’s steadfast commitment to a shared vision. After closing more than $125 million in transactions since 2017, we are well on our way to our stated goal of a portfolio of $1 billion—and we are just getting started.” “Partners Capital has fully deployed three investment funds in three years, continually delivering strong in-place cash flow combined with tremendous upside to its investors through vacancy lease-up, mark-to-market rates, and meticulous asset management of its property portfolio,” said Jon Silberman, Managing Partner of NAI Partners. “Refining the investment fund platform’s identity as Partners Capital will augment its reputation and brand recognition as it goes to market and wins deals, and create increased value for its investors,” said Mr. Silberman. Added Mr. Pappas, “As Partners Capital prepares to launch fund number four, our goal remains as ironclad as ever: leverage proprietary data and technology combined with decades of market expertise in order to generate value for our investors.” In conjunction with the new imprint, Partners Capital is also pleased to announce the official launch of its own dedicated presence on the web, located at www.partnersrec.com. The new website gives the investment platform a substantive digital home, with individual fund highlights, property showcases, case studies, media clips, an investor portal, and more. Mr. Pappas has led Partners Capital for nearly five years. During that time he has spearheaded the acquisition of more than 1 million sq. ft. of office, industrial and retail properties in Houston, Austin, San Antonio, and Dallas, and overseen more than $165 million in transaction volume. Kelli Walter is Partners Capital’s Senior Vice President of Asset Management, responsible for executing NAI’s business plan for every owned asset, and playing a major role in the ongoing growth of Partners Capital’s portfolios and the execution of its investment strategy. Adam Hawkins is a Vice President for Partners Capital, whose primary focus is procuring acquisition opportunities. He is also actively involved in property divestitures, executing asset management strategies, and supporting the ongoing portfolio management process. Donna Lanier is Controller of Partners Capital; and Sloan Crady is the platform’s Financial Analyst. Partners Capital has acquired more than a dozen properties through its three investment funds. The current portfolio consists of office buildings, industrial properties, and retail centers, and totals more than 1 million sq. ft. and over 325 tenants. For additional information, please contact Larry Koestler, Senior Vice President of Marketing & Communications, at 713.629.0500.

About Partners Capital
Partners Capital, a wholly owned subsidiary of NAI Partners, owns a real estate portfolio totaling more than 1 million sq. ft. and has completed over $125 million in transaction volume. Partners Capital was created by NAI Partners as a platform to invest in office, industrial, and retail multitenant properties in Houston, Austin, San Antonio, and Dallas that meet the following criteria: can be acquired below replacement cost; carries a $5 million to $30 million purchase price that falls below the interest of institutional buyers; generates positive cash flow; and allows NAI Partners to leverage its extensive industry knowledge and resources to generate attractive cash flow and value appreciation over a projected holding period of three to six years. Visit us on the web at www.partnersrec.com/capital

About NAI Partners
NAI Partners is one of the top 5 largest privately held and independently owned commercial real estate services firms in the state of Texas. NAI Partners was founded and is headquartered in Houston and has offices in San Antonio and Austin; offers the geographic expertise to complete real estate transactions throughout the state; and can leverage the power of the NAI Global network to arrange deals in any location around the world. NAI Partners employs more than 150 real estate professionals, and arranges more transactions than any of its competitors, completing over 700 commercial lease and sale arrangements every year. NAI Partners is a full-service firm offering client leasing and sales solutions in the areas of office tenant representation, office landlord representation, industrial tenant representation, industrial landlord representation, landlord services, retail services, property management, investment sales, an investment fund, valuation and advisory services, facilities services, and project management, among other services. The company is the top Houston-based full-service commercial real estate firm on the Inc. 5000 list of fastest-growing private companies in America; the 5th-largest Houston-Area Commercial Real Estate Brokerage and #1 Mover of Square Feet among leasing and sales brokerages in Houston per the Houston Business Journal; a Houston Business Journal Mid-Market 50 company; a top 12 largest San Antonio Commercial Real Estate Brokerage per the San Antonio Business Journal; and a top 20 Property Management Firm by square feet under management in Houston per the Houston Business Journal. NAI Partners has been named a Best Place to Work by the Houston Chronicle, Houston Business Journal and Austin Business Journal; and is among the University of Houston’s Cougar 100 Fastest-Growing Companies. Commercial real estate in Houston, Austin and San Antonio. NAI Partners offers full-service commercial real estate solutions to Houston, Austin and San Antonio, and has been serving the Houston commercial real estate needs of its clients for more than 20 years. We specialize in finding office space, industrial space and retail space, and can arrange an office lease, industrial lease or retail lease for your company. Our brokers help tenants and landlords or property owners of any size find the perfect real estate space or location for their business needs. For more information, contact us today.

Renter Nation; A Robust Apartment Development Pipeline Feeds Sustained Demand for Rental Housing

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A decade into this growth cycle, apartment developers in many metro areas still can’t build projects fast enough to keep up with demand. At the same time, rising costs and increased competition for renters are pushing both developers and investors to fine-tune late-cycle strategies to avoid potential missteps. Industry data sources paint much the same picture. Vacancies remain incredibly tight with rent growth that is still positive, although moderate, and outpacing the rate of inflation. According to a Mid-Year Market Update from Freddie Mac, national vacancy rates were hovering at 4.1 percent with annual rent growth averaging 4 percent. Data from Reis show stable, but slightly higher vacancies at 4.7 percent and effective rents that increased by 1.3 percent in the second quarter. “Everything that I see and read seems to indicate that we have more runway left in terms of the positive metrics that are contributing to multifamily being the darling of real estate,” says Reid Bennett, CCIM, senior vice president, National Council Chair of Multifamily at Sperry Van Ness | Chicago Commercial. Some believe that sustained demand represents a secular shift in housing. “I think we’re more of a renter nation now,” says Bennett. People across the spectrum from baby boomers to millennials and up-and-coming Generation Z appreciate the flexibility of not having to mow the grass or be tied to a home if they want to move to another city. They also saw friends and family that either lost homes or lost significant equity during the Great Recession, notes Bennett. “[O]wning a home has become less and less a part of the American dream,” he says. Click to read more at www.ccim.com.

Who is Nate Paul, the Real Estate Investor Linked to Abuse-of-office Allegations Against Texas Attorney General Ken Paxton?

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Earlier in his career, media reports called the now 33-year-old real estate investor a “wunderkind,” a “rising star” and a “prodigy.” Now he’s fighting more than a dozen bankruptcies and has been linked to criminal allegations against an embattled Texas politician.

Walk through downtown Austin or its rapidly developing nearby neighborhoods and it’s impossible to miss the massive black banners draped over office buildings, warehouses and bars. “Another World Class Project,” reads one posted to the metal siding of a squat industrial building downtown. Other banners riff on their own ubiquity with a pithy line popularized by DJ Khaled: “Another One.” The promotional campaign belongs to an Austin-based real estate investment firm owned by Nate Paul. World Class Capital Group has acquired an enviable portfolio of some of Austin’s choicest parcels with ambitious plans to lease or develop them. Paul has described himself in media reports as wanting to become “the youngest self-made real estate billionaire.” Click to read more at www.texastribune.org.

RCR Rail Co.’s 750-Acre Rail Park Underway

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With the greater Austin area expected to double in the next 20 years, the demand for rail freight tonnage will increase and RCR Rail Co is prepared to expand and grow as needed. Taylor is now a part of that growth. RCR Rail Co. has broken ground and construction is underway for a 750-acre rail park, RCR Taylor Logistics Park, which will be a dual Class I rail-served industrial park ideally located west of Taylor to serve manufacturing, storage and logistics industries of central Texas offering direct access to Union Pacific and BNSF Rail lines, State Highway 130, Interstate 35 and State Hwy 79. “RCR are great people to work with and they’ll be a great addition to the community,” said Mark Thomas, CEO of the Taylor Economic Development Corporation. “They’re very committed to the community, and we’re committed, as the economic development organization, to help them be successful and build this park up with quality companies.” The park will serve as a logistics hub for the area, and will assist companies in Travis and Williamson counties, the greater Austin area and other localities increase productivity and accessibility with unrestricted access. The park is capable of handling multiple, non-hazardous commodities and can be customized to fit customers’ needs through transloading, manifest and unit train services for both Class I railroads. Thomas said the scale of the rail park, 750-acres, is to target distribution, transportation, manufacturing and similar types of users. “By having it be rail served that is a huge benefit because it’s so costly to put the rail in and create a rail park,” he said. “The projects that go in there will probably need to have rail service.” According to a press release from RCR, clients currently considering RCR Taylor Logistics Park are national and international grade firms looking to consolidate to central Texas. “Rail is a major player for corporations looking to move product effectively and in large quantities and RCR Taylor Logistics Park will allow industrial users to be closer to the population they serve while taking advantage of the significant cost savings of rail transit,” the press release stated.

It’s The Perfect Time to Experiment in the Real Estate Industry

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This simplistic sound bite is directionally correct, but as Bill Gates’ quote illuminates, it may be a little, or lot, off on the timing. As they say, “in the end we all die”…. but there is a lot of time between now and then, hopefully! I think the important part of Gates’ quote is, “Don’t let yourself be lulled into inaction.” Another way is to take the opportunity when disruptions occur to adapt and innovate to meet changing needs. I have been lucky to be in the real estate game for a long time, and it has been fun to see the many leaps forward in the industry. The capital formation became further institutionalized with the advent of securitization, public REIT’s, Private REIT’s, and other financial vehicles. Development always advances with the creation of new materials and construction techniques–a six-story tilt wall, give me a break! One million square feet of warehouse under one roof–come on. Timber construction for office buildings–oh my! Click to read more at www.dmagazine.com.

Industrial & Innovation; Dallas-Based 42Real Estate Digs into New Projects

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As an interviewer, it’s tough to talk to 42 Real Estate founder Scott Rohrman and not ask about Deep Ellum, what is now the arts and entertainment neighborhood in east Dallas, but he graciously talked about Deep Ellum, so long as we could discuss his other love: industrial real estate. “Deep Ellum was just a complete departure from what we’d done before,” said Rohrman, adding, “Although urban revitalization is now also part of our DNA.” Though his company’s name is inextricably linked to the reinvigoration of what had been a largely industrial and neglected area into a successful restaurant, bar and venue scene, 42 Real Estate’s foundation is industrial built-to-suit projects. “In the past 20 years, we’ve built about $1 billion worth of industrial,” Rohrman said, “And we’ve developed projects in 26 states, plus Canada.” Before forming 42 Real Estate, Rohrman served as a partner in two separate commercial real estate development companies. He also logged time at brokerage firms The Stratford Group and Fischer & Company after working as a broker at Grubb & Ellis / Henry S. Miller Company, where he started his career. You’re no doubt wondering about the company name. Why 42? Rohrman likes to play coy with the answer. 42RealEstate.com has an entire page dedicated to the explanation of the name, or possible lack thereof. The verdict, really, is yours. Another unique feature of the firm is its approach. Its team is divided into development management, construction management and property management because, you see, the firm does it all. Rohrman says that over the years, people have suggested hiring a construction manager and/or a property manager for his projects as that may be more efficient. Maybe so, he acknowledges, but it would also be less personal. Click to read more at www.rednews.com.