12-story Las Colinas tower sells to investors

Crestview Tower in Irving was built in the 1980s.

The Crestview Tower is located on State Highway 114 in Las Colinas. (Contributed / CapRidge Partners )

A Las Colinas office tower has changed hands.

The Crestview Tower is near State Highway 114 in Irving. The 12-story building includes almost 270,000 square feet of space and was built in 1982.

Since 2014, the building has been owned by Austin investor CapRidge Partners. It’s been bought by an investment group that includes an affiliate of Dallas’ Reserve Capital Partners. Southside Bank provided funding for the transaction.

A new lobby is part of the planned Crestview Tower renovations. (Entos Design )

The new owners plan to reposition the property.

“We’re going to do a pretty significant upgrade from where it is today,” Reserve Capital founder Brant Landry said. “It’s a phenomenal location. The southwest side of the building overlooks Las Colinas Country Club.”

Landry said planned improvements for the tower include new lobby areas, tenant lounge, fitness center and outdoor spaces. Entos Design is working on the renovations. He said the building is almost 80% occupied.

Renovations to Crestview Tower will include new outdoor lounge areas. (Entos Design )

“One of the reasons why we bought it is the asset is not broken, it just needs to be improved,” Landry said. “We are already in negotiations for another 8,000 to 10,000 square feet in leases.”

Reserve Capital Partners has a track record of owning office and industrial properties in several states.

“Most investors are scared of office right now,” Landry said. “We are still bullish on it and looking for opportunities to buy.”

Newmark Group’s Robert Hill, Chris Murphy, Gary Carr and Chase Tagen brokered the Crestview Tower sale.

Reserve Capital Partners last year broke ground on a Garland business park. And the commercial property firm previously acquired a Farmers Branch office building on LBJ Freeway.

Crestview Tower is just the latest Irving office building to change hands.

In December, Austin-based investor Capital Commercial acquired the 365,000-square-foot Exxon Mobil campus in Las Colinas.

And the Riverside Commons office campus was sold to a local investor. The two-building Decker Hills office complex in Las Colinas also recently traded. Dallas-Fort Worth was the country’s top commercial property investment market in 2022, with more than $42 billion in properties sold.

The renovations to Crestview Tower include outdoor spaces. (Entos Design )

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Construction kicks off on Garland business park - Dallas News

Reserve Capital Partners is building its speculative industrial project at Jupiter and Miller roads in Garland. 

Two buildings are included in the project on Jupiter Road. 

A Dallas developer is partnering with the city of Garland on a new business park. Reserve Capital Partners is building its speculative industrial project at Jupiter and Miller roads. The project includes two buildings with almost 200,000 square feet of space. Work on the 11.5-acre industrial park is scheduled for completion early next year. 

“We are excited to bring additional Class A industrial space to the city of Garland,” Reserve Capital Partners’ Rachel McCready said in a statement. “We value the community and fundamentals of this key D-FW industrial market.”

SRS Industrial is marketing the development. Veritex Bank financed the project. The project will “complement the city’s larger redevelopment efforts and our robust manufacturing sector,” Garland economic development director Ayako Schuster said in a statement. 

Reserve Capital owns a growing portfolio of office, industrial and commercial real estate in Texas, Florida, Missouri and Kansas. The company also has a warehouse project in Hutchins. 

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Nationwide sells big West Side office campus to Dallas-based fund as it moves to hybrid work model

A Dallas investment fund has purchased Nationwide Mutual Insurance Co.’s big West Side campus, which the company put up for sale this summer as it shifted to a hybrid work model spurred by the pandemic.

Reserve Capital Partners on Tuesday bought the roughly 270,000-square-foot facility at 9903 Nationwide Drive in Westover Hills.

A Dallas investment fund has purchased Nationwide Mutual Insurance Co.’s big West Side campus, which the company put up for sale this summer as it shifted to a hybrid work model spurred by the pandemic.

Reserve Capital Partners on Tuesday bought the roughly 270,000-square-foot facility at 9903 Nationwide Drive in Westover Hills.

The sale price was not available, but the 30.2-acre property was valued at $54.4 million by the Bexar Appraisal District. Nationwide will lease about 55,000 square feet there.

It is Reserve Capital’s first acquisition in San Antonio, though it has unsuccessfully tried to buy other large office properties in the city, said co-founder and partner Brant Landry. Trinity Private Equity Group of Southlake is its equity partner in the deal.

“We immediately liked it,” Landry said of the Nationwide site. “We’re one of the buyers that still believes in office and continuing to try to buy office, and we just felt like this was kind of a once-in-a-lifetime opportunity.”

The complex has a full-service cafeteria and a big conference center, among other amenities, Landry said. Reserve Capital plans to make some cosmetic upgrades and add outdoor games.

The ample space could be attractive to cybersecurity and health care companies or government operations, he said, and discussions are underway with a few potential tenants.

Nationwide’s employees started working remotely in March 2020 amid the coronavirus pandemic. The next month the insurance and financial services company announced it would move to a hybrid workplace model.

At least half of its employees company-wide will permanently work remotely, so Nationwide is reducing its office space. San Antonio is one of four main corporate locations where the company said last year it would maintain work-from-office employees.

The West Side complex was built to accommodate 2,000 employees but had not been full for some time, the company said in June when it announced plans to sell the property. Nationwide employs more than 900 people locally.

“A small number of facilities and security jobs were impacted by the plans,” said spokesman Joe Case. “San Antonio continues to be a primary employment center for our company.”

It first expressed interest in 2006 in opening a “third headquarters” in San Antonio.

Nationwide then had 932 employees here and the city made the final list as the company conducted a search for the new location, which was to bring more than 800 new jobs. But the process then stopped and local officials were left wondering what was happening until 2008, when it resumed and San Antonio ultimately was selected.

The city of San Antonio and Bexar County each provided $500,000 and 10-year, 100 percent property tax abatements and the Texas Enterprise Fund kicked in $2.5 million worth of incentives. The campus opened in 2013.

Nationwide terminated its agreement with the state in 2011 and repaid what was owed with interest, Case said in June. The company is also ending its deals with the city and county and anticipates repaying about $1.2 million.

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BNSF Railway Appoints New CEO and President

Plus, new appointments and promotions at Dallas Museum of Art, Salesmanship Club of Dallas, Landry Commercial, and more.

Carl Ice, current president and CEO of BNSF Railway, will retire at the close of 2020. Executive Vice President of Operations Katie Farmer will assume the role at the start of the new year.

Farmer has 28 years of experience with BNSF, beginning as a management trainee with Burlington Northern before its merger with Santa Fe Railway. She has since held leadership roles in areas including operations, finance, and marketing. Her most recent post, before leading operations, had her overseeing BNSF’s consumer products division as group vice president.

Before the pandemic, BNSF experienced 12 percent annual earnings gains, and Farmer is excited to continue the railway’s prior success.

“We are well-positioned in our approach to safety and meeting our customers’ expectations while having the necessary capacity to grow with our customers. BNSF has long been a cost leader, and we will ensure that continues,” she said in a release.

Ice has been with BNSF for 42 years and led the team that facilitated the merger of Burlington Northern and Santa Fe Railways in 1995. He then helped create the company and culture that have become the largest Class I railway in North America.

“One of the most important roles of a CEO is to ensure a strong succession plan is in place,” Ice said in a release. “Katie and I have been working toward this plan for a long time. Katie has held many different roles at BNSF with an ever-increasing impact.”

Farmer earned her MBA from TCU.

The Dallas Museum of Art announced its Board of Trustees for 2020–2021, which includes 12 new members nominated and elected unanimously by The Committee on Trustees and Governance.

With Catherine Marcus Rose as chair, the Officers Nominating Committee also unanimously elected William M. Lamont, Jr. to serve an additional two-year term as chairman of the board. Catherine Marcus Rose, Victor Almeida, and Peggy Sewell will continue their roles as president, vice president, and secretary, respectively. Trustee Adrian Sada will serve as treasurer of the board.

The following 12 individuals are to serve as new trustees for a three-year term: Sheryl Adkins Green, chief marketing officer at Mary Kay; A. Shonn Brown, vice president and deputy general counsel at Kimberly-Clark Corp; Walter Elcock; Arlene Ford, Founder and CEO of the Equity Inquiry Project; Kelli Ford, co-owner of Kirsten Kelli Design; Ann Hobson; Venu Menon, former vice president of technology development at Texas Instruments; Jessica Nowitzki, president of the Dirk Nowitzki Foundation; Adriana Perales, president of GP Mobile; Daniel Routman; Amanda Shufeldt; and Michelle Thomas, vice president of Global Philanthropy at JP Morgan Chase and Co.

Lyle patman

Lyle Patman has joined Landry Commercial as vice president and will focus on growing the company’s land division as it expands into Dallas and other markets. Patman will represent both landlords and tenants, specializing in negotiation, financial and strategic counseling, economic analyses, relocations, and disposition preparation. Previously, he served as vice president of Partners National Real Estate Group.

Lyle Patman studied business at Texas Tech University’s Rawls College of Business.

The Salesmanship Club of Dallas has elected Mike McKinley to serve as the organizations’ 101st president. His appointment comes at the same time that the club will celebrate its centennial.

McKinley, who has been a member of the Salesmanship Club of Dallas since 1992, succeeds Pete Lodwick. McKinley most recently served as chairman of the board of directors of Salesmanship Club Charitable Golf of Dallas and as chairman of the advisory board for the Northern Texas PGA. Additionally, he has 40 years of experience in banking, business, and corporate law, and is a founding partner at Shackelford, Bowen, McKinley & Norton.

McKinley will serve a one-year term alongside six members elected to the Salesmanship Club of Dallas Board of Directors.

Tameka Y. Cass joins WiNGS as its chief development officer, replacing interim CDO, Melissa Cameron. In her new role, Cass will create and enact the framework for growing a $3.5 million budget through various fundraising events and corporate and foundation support.

Cass brings more than 18 years of professional fundraising experience to the organization, and has a “proven talent in fund development and extensive experience in the nonprofit community,” said WiNGS CEO Kate Rose Marquez in a release.

Before joining WiNGS, Cass served as director of philanthropy at Metrocare Services, senior director of corporate and foundation giving at United Way of Metropolitan Dallas, and principal gifts officer at Parkland Foundation. She currently serves as the vice president of external affairs of the Dallas Chapter of Association of Fundraising Professionals. She is a founding member of HERitage Giving Circle and Power in Action Dallas.

Cass received a master’s in human relations and business from Amberton University.

matt waldon

Reserve Capital Partners has hired Matt Waldon as vice president of leasing as the company expands its presence in Dallas. In his new position, Waldon will handle all in-house leasing for RCP’s portfolio.

Before joining RCP, Waldon served as vice president at Pillar Commercial for eight years, where he specialized in house leasing and marketing.

Waldon received his BBA from Austin College.

Densification of Sprawling DFW Region Putting Premiums on Well-Located Properties

Reserve Capital Partners' Purchase of Danari Office Park Reflective of Impact North Texas' Density is Having on Investments

Dallas-based Reserve Capital Partners' latest deal to land in the last six months - the acquisition of Danari Office Park - fits squarely into the private equity firm's investment strategy and illustrates the impact North Texas' densification is having on real estate investments. 

Reserve Capital partnered with Southlake, TX-based Trinity Private Equity Group to acquire the three-building, 111,286-square-foot office complex, located at Preston and Belt Line roads in North Dallas, for an undisclosed sum. The park last sold at $10.5 million in 2007. It was last valued by county appraisers at about $8 million. 

"We like to target value-add opportunities in irreplaceable locations," Brant Landry, a partner at Reserve Capital, told CoStar News. "This is a strategic play for us that has been, so far, serving us well."

To date, Reserve Capital has deployed $60 million of its $300 million fund acquiring properties, including Hidden Grove at Park Central in North Dallas. The firm has an $80 million property under contract in San Antonio with hopes of investing in more Texas markets. 

"The building in San Antonio matches the profile we are looking for in a property with a similar size to Danari Office Park in a similar-type location," Landry added. "There is nothing broken about it; it's a great building, but it needs another long-term owner and a little TLC."

Ron Hebert, a first vice president of investments for Marcus & Millichap's Dallas office, said he is seeing an increased investor interest in well-located properties as Dallas-Fort Worth continues to sprawl with the influx of new residents.

"Traffic is getting worse and people want to live closer to work," Hebert told CoStar News. "If they want a 30-minute commute, it's no longer 15 miles, but 10 miles away. Everything is becoming denser, which is helping the investment value of existing buildings."

Hebert represented the seller of Danari Office Park, California-based Adler Realty Investments, Inc. He and his colleague Joe Santelli of Marcus & Millichap also procured the buyer. 

Reserve Capital Partners plans to upgrade the park with improvements to the common spaces and tenant amenities, and rebrand the park as Preston Grove. The firm has hired Dallas-based Holt Lunsford Commercial to lease and manage the office buildings. 

Meanwhile, Reserve Capital Partners is seeking more deals with plans to fully deploy its $300 million value-add real estate fund by mid-2019. The team is underwriting a handful of properties in Dallas-Fort Worth right now, Landry said.

Upon deploying the entire fund, the Reserve Capital team plans to raise a second real estate fund.

"Our average deal size is $20 million to $25 million," Landry said. "We'd like them to be larger, but they have to be the right deal."

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Can Amazon Take Dallas To The Big Leagues?

According to some predictions, Dallas is the most likely candidate for Amazon's breathlessly anticipated HQ2. About 50,000 jobs, an 8M SF campus and the sheer brand might of Amazon are bound to shake things up if Dallas does win the bid, but is it enough to take this city to the big leagues?

Though Dallas is enjoying a long and profitable upcycle in almost every asset class, there are a few things holding us back from making it to the upper echelon of top-tier cities like San Francisco or New York City — things even Amazon cannot deliver.
 

Putting aside industrial, which is a national top-tier market and enjoys a lot of attention from investors both foreign and domestic, market experts say Dallas is still in the process of maturing, and institutional capital has been avoiding large-scale moves in the market.

Reserve Capital Partners partner Greg Seitz Downtown needs to be a 24-hour locale before investors will consider Dallas a global player.

“I think [Amazon HQ2 would be] a dramatic enhancement, but it’s not going to be an automatic light switch that changes things,” Seitz said.

The only caveat, Seitz said, would be if Amazon put HQ2 in Downtown Dallas, but he also said he does not see a spot in Downtown where Amazon could fulfill its HQ2 requirements.

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