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Overheard At The Urban Land Institute Tonight

Well, when you read this, it will be what I heard last night. The deliquency rate on securitized commercial mortgages is at 4.83%, almost 5%, and that is a NINE-FOLD increase over last year. That’s mortgages on all commercial real estate, and that is not good news.

September: Just Not a Good Month for Dallas Commercial Real Estate

Last week we learned that 42 acres at the intersection of Walnut Hill Lane and Central Expressway are en route to the foreclosure chopping block vis a vis Wachovia Bank; this week we learn that Compass Bank has taken over the Signature Pointe Apartments in East Dallas, which were supposed to be transformed into yet another snazzy Dallas shopping/living/retail center, following the steps of the uber successful development Mecca, West Village. (If I had a dollar for every developer who said to me, “we are striving for a West Village-type atmosphere”, I’d have enough to cover how much over budget I was on the wedding!) As one of my commercial real estate sources puts it, no surprise, it’s tough all over: there will be similar stories ahead. What do you think the impact of this potential foreclosure will have on the area — East Dallas in particular?

Randalls Wants To Raze/Redo Simon David on University in Greenway Parks?

From UnFair Park: it looks like Randalls wants to keep the new Simon David about the same size as the old one that has been there for 24 years. I actually shopped at this store for ten years when we lived on Park Lane and Simon David was, to me, a precursor to Whole Foods. In fact, Dallas is one of the most competitive grocery store markets in the world so I would imagine Randalls wants Simon David beefed up. The residential area behind this store, aka the “bird streets”  is changing quickly from ramshackle rent homes to bungalows that have been remodeled with many a new construction. Property values definitely headed up here, Greenway has always been rock-solid despite the fact that the area is DISD.

Highland Park Village Theatre Will Re-Open in May…

Highland Park Village partner and leasing director Stephen Summers wants to dispel a few rumors…

Good Reading: Real Estate Entrepreneur Ray Washburne

I had totally forgotten that Ray Washburne helped found Phil’s Natural Food Market until I read the business profile of him in Sunday’s DMN. (Missing: I would have liked to know more about his personal life. Who was his inspiration?) I totally recall shopping at Phils on Lovers Lane and thinking it was the greatest thing since sliced bread, and I was very surprised when it did not grow. A few years prior, there was another “natural foods market” at Preston and Forest. Guess those stores were just ahead of their time. The article also sported great quotes from Henry S. Miller III on Washburne’s recent acquisition of Highland Park Village:

“During the worst recession since the Depression, Washburne had the tenacity to seek out financing so his family could buy Highland Park Village for a hefty $170 million. The Wall Street Journal said no single U.S. retail property had sold for more this year, and the price per square foot of $680 may be the most paid for Dallas area retail this decade, or maybe ever.”

Of course, recessions are when smart investors pick up property for (hopefully) pennies on the dollar. HPV was not a fire sale, but Washburne was undaunted in his hunt for financing. He’s already making changes. The Regent Theatres’ lease has ended, but Washburne says it will re-open in the spring after a major remodel that will include dining. My guess is that the plans will include a very family-friendly, Studio Movie Grill-type idea to continue what Washburne called a “Beaver Cleaver” existence he enjoyed as a child in the Park Cities. The article also details how he worked his way through SMU, acquired rental properties and started a dorm “Ray The Carpet Man” carpet company while an undergraduate at SMU. The story of his college and pre-college entrepreneurship brought to mind another biz magnate from the 1970’s who went on to change life as we know it: Bill Gates.

Dallas Real Estate Ups And Downs: Considering A Condo Move To “21″

I want to do an experiment. I want to try living in a condo for about six months and see if I, a confirmed home-owner, can stand it. I kind of like my privacy and lots of space. I like to let the dogs out at all hours without having to comb hair and don dark glasses to cover eyes without makeup. Once in a blue moon I like to garden. Some friends who have moved to condos from homes LOVE them — no more maintenance, valet at your fingertips. Others say it was the worst mistake of their lives: lack of decent closet space, weird smells, high maintenance fees, everyone minding your business. But condos have lower utility rates and multi-fam living is more green. That’s why I think developers should let potential buyers “try on” condos to see if they really like them.

This is a comment from a reader that was going to get buried. He/she already lives in a condo and is considering a move to “21″ — what can we tell them:

 ”I am a long time condo owner in another HOA but an considering moving to 21 Turtle Creek. Is it really bad? I am president of our Board and we try to treat owners courteously. We are very hands-on in our property management so we don’t go into debt but still maintain our property. Does 21 have frequent dues increases and assessments? We have had only 1 assessment and 5 dues increases in 26 years. Also, propably because we are not a high rise but are built around a courtyard, owners are friendly but not in your business. And, if you don’t want to valet park, can’t you just go in the garage and park yourself. Does everyone have to know all your comings and goings and who visits you and when? Thanks for any input.”

 

Do Land Leases Have Anything To Do With Texas Gold?

Tim posted a question on FB asking if, when the land leases on NorthPark Center  expire, the owner of the lease gets to keep the improvements — i.e. NorthPark. Then he got his answer: no. But it was a great question: I wonder how many people know that many major developments are erected on dirt not necessarily owned by the developer or the person who owns the improvement? In Mexico, for example, until very recently foreigners who bought homes there owned the structure but leased the land from the state. (Beach property is still available in Mexico only as a land lease.) Usually the land leases are extended, sometimes they actually run out at which point the developer/owner can negotiate to buy the dirt. This happened to a developer friend recently who bought a condo in California on a land lease — the lease was up sooner than he realized and all the owners had to scramble to fork over several thousand dollars to buy out their dirt landlord, an Indian tribe.  I am curious as to the origins of this and wonder if it has anything to do with oil? Do property owners like to hang onto dirt just in case of a Spindletop? Couldn’t that be done by maintaining the mineral rights?

Dear Jeff Mosier: The Jonas Brothers Do Not Live In Arlington

As you know, the new Cowboys Stadium opened the way-cool sliding glass yesterday, which has created a bubble of controversy in Arlington, some folks there upset that Dallas will end up hogging location PR while Arlington, where the place is located, will have to fade into the background like most bedroom cities nestled next to huge major metropolises often do. For example, I love my hometown of East Dundee, Ill. but do I tell people I am from there? No, I say Chicago. I am not usually hyper-critical, but I noticed that Jeff Mosier in the Dallas Morning News this morning criticized the Jonas Brothers’ Web site for placing the new stadium in Dallas. (The boys kick off their June tour at the new stadium June 20, which I hear is sold out or close to.) They should know better, said Jeff, because they live there, too. No Jeff, the Jonas Brothers live in Vaquero, an uber-exclusive gated community in Southlake. But it is in Tarrant County, which he got right (or corrected) on his blog. I’m really not being critical — I make tons of errors because we are mere mortals writing these blogs with no fresh-brained fact-checkers following to clean up our act. But since I am obsessed with real estate, I just had to make a point. Love ya Jeff, mean it.

Highland Park Village Sale: What’s Coming, What’s Going?

At a private celebratory party last night, Ray Washburne was crowned the King of Highland Park Village at his Mi Cocina’s, the second floor so crowded a June Bug couldn’t fit in. HPV passes from one illustriou$ family to another. Breathe a sigh of relief: Ray Washburne tells the DMN that HPV is in good hands with its new owners, all locals who care deeply about the historical shopping center. Vince is coming — no word on rumors that Apple and Lela Rose or other new vendors will be nipping close behind. Stay tuned.

Highland Park Village Sale: Closed

We should be hearing the official announcement any day now…

Update: Heard it took all day Friday and Saturday and more equity.

Steve Brown, You Know What This Means

We can do lunch!

Ray Washburne is on a Commercial Real Estate Shopping Spree

First Highland Park Village, then this. I’ve got to check on those stained glass windows in Westminister Presbyterian. I recall designer to the rich and famous Trisha Wilson telling me that one of her very first jobs, besides selling furniture at Titches Department Store, was designing stained glass windows for local architect Harry Hoover. Westminister was designed by architect Herbert Miller Greene. Wonder if they ever traded windows?

So When Is That Highland Park Village Sale Going To Happen?

The venerable Highland Park Village is in the process of being sold by the Henry S. Miller family to a man named Ray Washburne, CEO of Charter Holdings. And why do you care? Because neighborhood shopping centers have an intrinsic fiscal relationship with the homes that surround them — great shopping centers enhance home values and quality of life, bad ones suck values down like a vortex. Our sister blog Overheard and DD contributor Josh Hixson reports that the new owner may be booting trainer to the stars Larry North from his digs, most likley because Miller gave North a sweet rent deal that Washburne may not be able to stomach given the current economic climate and precious price he’s paying for what many consider the most prime retail space in America. (Would you like a rent in the realm of $17 per square foot when the going rate is $80 to $100 plus triple net, no finish-out? Me too. ) Though Miller threw in a Hail Mary to up the price, my sources tell me the deal is just minutes from the finish line. Now wonder if they are keeping the theatre?

Re: Dallas Cowboys New Stadium

CNBC Sports Business Reporter Darren Rovell has serious doubts about Jerry’s ability to put butts in his new stadium’s luxury suites:

Since the stadium was designed, a lot has changed. The corporate world is in shambles and corporate hospitality at this point is non-existent. And while the Cowboys say that 273 of the 300 suites are booked, don’t think “America’s Team” won’t go through America’s troubles. Trust me, some of those leases that are signed through 2029 won’t even stand the test of 2009.

Rovell’s advice is to convert some of the boxes into a much larger suite where corporations can by individual tickets instead of paying for an entire box.

Update: Yes, we have a brand new sports blog that is terrific — and here’s the link to it. Hi Evan, Hi Jeff, I was with Deion Sanders tonight!!!

Update 2: That update was from Candy. Sorry for the confusion. Hi Candy. You think Prime Time would give us a tour of his palatial Prosper mansion?

Dallas Center For The Performing Arts

I have such bad manners — I invited myself to a hard-hat D staff tour of the under-construction Dallas Center For The Performing Arts, then didn’t show. I ended up 25 miles west at a sports real estate tour in Arlington, those pics will be up shortly. If I couldn’t be in two places at the same time, I knew my collegaues would get you all the scoop on the Winspear and Wyly. (Kyle Kearbey video forthcoming.) Does this place not look awesome?  What a boost for living in the Dallas Arts District!

Whole Foods Lakewood: Kids Will Want To Wash And Dry Their (Germy Little) Hands

This is a Dyson sanitizing hand dryer in the ladies’ bathroom. Pop in your hands, they are dried and cleansed. Rather OCD myself, I love this concept (just ordered my sanitizing wand for hotel rooms) and will be in the bathroom over there every day. As will the kids, I’m sure — just hope they don’t go sticking little Gerbils in there — oh Lord — horrors. �

Whole Foods Lakewood: No More Excuses Not To Cook

Or, like me, let meat and poultry get freezer burn in my freezer while I doodle around with recipe books. One-of-a-kind, this tech-age scale weighs your meat choice (even venison and buffalo), prices it, then prints off three recipes so you know what the hecvk to do with it, AND serve with it: appropriate side-dishes and the perfect wine selections are also included. Will it suggest the perfect guests? Spouse? Will it do the dishes?

Whole Foods Lakewood

60-foot long timeline marking notable events in Lakewood history and important dates in Whole Foods Market History. Anyone remember the Bluebonnet Cafe?

Whole Foods Lakewood

Since this store marks the move of the famous, 22 year staple Whole Foods on Lower Greenville, WFMI went to extra lengths to make this store a significant “crunchy” showcase and take a nod to the community’s as well as the chain’s lineage, as depicted with this 60-foot long wall timeline.

Whole Foods Lakewood

Counters are made of recycled bottles and jars.

Whole Foods Lakewood

Go green: Lights in the frozen food cases are motion-activated, turn on when a shopper walks by.

Whole Foods Lakewood

The personal shopper service is free the first time, fee thereafter but get this: this store utilizes “Go Green” Concierge Service which uses only hybrid and biofuel vehicles.

Whole Foods Lakewood — Way Cool Interiors

This store will receive L.E.E.D. certification for reducing its environmental impact and improving store occupants’ health and well-being. There are 47 skylights for natural sunlight and photo-responsive daylight controls that turn off when the daylight is sufficient. In other words, strong energy savings.

Whole Foods Lakewood — Sneak Peak Inside The New Store

Whole Foods Market opens its long-anticipated Lakewood store Monday, March 2…. and Lakewood homeowners will celebrate not only what is possibly the most “green” Whole Foods store in the chain (Austin, earmuffs) but a tremendous boost for Lakewood home values. “That store,” said Realtor Scott Carlson, “is going to give us all even more of an appreciation boost.” Not that Lakewood needs any help: though there’s plenty of inventory, sensibly priced homes there are selling well, agents tell me.�