Category: News

Younger Partners team members collected toys & gifts for Community Partners of Dallas Toy Drive again this year. These items will be used for the children who come into protective care after the deadline to submit wish cards and for any children whose wishes did not get filled to help ensure that no child is forgotten this holiday season.

These items will be used for the children who come into protective care after the deadline to submit wish cards and for any children whose wishes did not get filled to help ensure that no child is forgotten this holiday season. For more information on CPDTX, click here.

By Robert Grunnah

For many years, our Investments/Land Division, now a division of Younger Partners, has produced a report designed to assist investors in deciding the viability of acquiring undeveloped land for medium and long term positive returns. Since our 2016 report was distributed, DFW has experienced continued enormous growth in virtually every commercial and residential product type. Much remains the same in our report this year, except we are seeing legitimate evolving trends that should be considered. Absorption of undeveloped and underutilized land continues at an unprecedented rate. Aggressive, new vertical development has left even fewer desirable infill sites remaining, producing ever increasing activity further out from current job markets and increasing commuter distance demands. However, employers, recognizing that the seriously evident shrinking pool of employee candidates, sensitive to job location, are moving employment centers closer to demand. This competition for employees, inflated raw land cost, a rapidly increasing cost of living, and transportation congestion are all beginning to affect our extended growth cycle. We remain attractive to relocation compared to our competition, however, the gap is decidedly smaller. Our observation is economically based. As long as we have the anticipated continued job growth, inbound population increases, low interest rates, and a sound local economy, there is no reason for an immediate reverse cycle. However, should any one of those standards collapse, the effect will be telling on all. To repeat, there has never been a “last cycle”.

Historically low capitalization rates, purchase prices far in excess of replacement costs, and decreasing retail demand, have made income producing investments extremely vulnerable to negative economic conditions and all but impossible to rationalize purchasing. Excessive competition to acquire cash flow assets producing even the smallest yields is a precursor to failure. A cyclical correction in the national economy would have an exceptional negative impact.  Inherently, land investment differs greatly from other types of real estate products generally by its inability to produce interim cash flow and its sensitive vulnerability to recurring cycles.  The criteria used to determine potential land opportunities, while becoming considerably more sophisticated over the last two cycles, remains principally in implementing four basic strategies.

Perhaps the most important of these is the ability to project and fund ownership long term. Positive liquidity, the ability to sell for an acceptable profit at the optimum market time, can be highly speculative. When an investor is placed in an imposed forced sale position or loses confidence in the future of the investment, returns are jeopardized and most frequently result in a significant loss.

We have all learned that real estate is “local” in character. No two markets possess the same dynamics. Location will ultimately best determine value. Values of similar properties will vary greatly in specific submarkets and in different geographical locations. Public perception, while an intangible, plays a large role.  As an example, southern Dallas County, until recently, has had little attention from investors and developers. Ignored were its extensive existing infrastructure, excellent highway and rail access, attractive land values, and existing employee base. While historically competitive locations north, without similar benefits, trading at prices two and three times higher, the southern sector remained overlooked. Over the last few years, however, both users and developers have rapidly recognized this area as the jewel it is. Millions of square feet of new construction, intermodals, and support commercial have been built and more is planned. Our “slow to lead, quick to follow” mentality has given new life to the “Southern Sector” which promises to have a long term and deserved resurgence.

Anticipated use governed by demand, zoning, proximity to infrastructure, interim use, historical absorption, positively perceived location, and the municipal political climate, are but a few of the investment points to be considered. Current investment and development activity by informed entities and verifiable market comparables are equally important.

To repeat, like most types of investments, real estate is cyclical. Investment success or failure can often solely depend on where the cycle is at the time the purchase is made and the investor’s ability to determine the true state of the cycle. There has yet to be a final cycle, thus, the ability to hold long term may affect the yield but does offer some degree of security. While the ability to use historical data to project long term value as set out above is logical, many down cycles have been created by artificial, non-real estate related influences that were difficult to anticipate. For example, in the late 1980’s, tax law changes and deregulation destroyed the market. In the late 2000’s, the subprime collapse did the same. It is reasonable to assume there will be more fragile “bubbles”.

Younger Partners is a member of the highly respected North Texas Land Council (NTLC), a group comprised of 50 of the most active and talented land brokers in our area. Believing that activity generates more activity, the North Texas Land Council freely shares information with its competing members, and the market in general, on a level of professionalism unusual within similar organizations and, as such, is a benefit to all clients. Much of the projected activity displayed on the Younger Land Absorption Map (YLAM) reflects the activities of the NTLC.

The DFW market today continues to see record prices for infill, readily developable sites possessing available infrastructure, permitted anticipated uses, and demand for product. Developers are now aggressively demolishing fully functional buildings in order to build product more in demand which has historically been a warning to a pending market correction. Fueled by extensive population and employment growth, new construction remains at a record pace which is anticipated to continue at least through 2018, a projection supported by deals currently designed, engineered, and possessing financing commitments. It will be interesting to observe the effect new construction growth achieves as the six major current DFW projects are completed. Of course, the anticipated arrival of HQ2 will extend for years our current positive cycle.  Increased land, labor, and materials cost will, however, inevitably have a negative impact. Construction in process and fully financed new projects pending ground breaking, although distinctly slowing, will continue to fuel the real estate market for the short term. That “pipeline” has gotten understandably smaller which presents an interesting speculative projection for 2020 and beyond. Increased activity for pure, longer term investment sites has continued the extension to the outer lying, concentric circle tracts, considered “pure investment tracts”, which until recently remained fairly benign in sales activity and price fluctuation. It appears that such specific investments are becoming more attractive since competing investments such as oil and gas (price fluctuation), a pending bear stock and bond market (the same non-occurring “pending” from last year), and the tech world which offer a less equitable vehicle. Additionally, local investors (the heretofore most active group of land speculators) are seeing increased competition from more patient national and foreign investors. Yet, historically, and perhaps ironically, a large number of the most successful, wealthiest investors have made their patient fortunes in land by simply applying these basic techniques.

Our continuing and extended analysis, as displayed on the “Younger Land Absorption Map” (revised November 2017, available upon request) is principally based on extensive historical data collected utilizing over 100 years of market experience possessed by Younger associates, members of the NTLC, and reliable future projections from sources that have traditionally displayed accurate demographic information. Depending on which source one chooses to use, the DFW market still expects to absorb an additional 1.6 to 2.5 million residents over the next fifteen years. Success in real estate investment will be to determine where that growth will locate. History has taught us that product will be made available and priced based on pure economics. The cost to provide available product to meet demand will depend on the availability of affordable infrastructure (sewer, water, roads, proximity to employment centers, service commercial, schools, political climate, etc.). Land prices will fluctuate according to such availability. Investing in the right product will produce exceptional rewards. Some estimate that it requires approximately 12,000 to 15,000 acres of raw land to accommodate one million people in a reasonably confined, socially acceptable, service provided environment.

We have been fortunate to have had an extended period of prodigious activity which can at least be partially credited to our aggressive polital structure, both local and state, our sophisticated and informed developers and engineers,  and our incredibly competent and equally aggressive EDC’s. Of equal depth, however, is the dynamic, well educated, hard working, and professional “under 40” group of brokers, administrators,  managers, and general employment base whom have emerged during this cycle. They may well be the first group exiting  a positive cycle who have learned and benefited from the experience of their predisessors. They may not need a disaster to stay relevant and solvent.

In conclusion, the principals of sophisticated investment must utilize primary criteria, some of which is outlined above. Access to infrastructure, most importantly water, the admirable, continued effort by our current Dallas Mayor to utilize available land in our southern corridor, absorption of the remaining few infill sites, high suburban infill land costs, and the migration of employment centers will all play significant roles in prudent investment decisions. Utilized in the investment process, the only remaining elements are sound financial strength and patience.

About Younger Partners

Younger Partners is a full service DFW brokerage firm specializing in all areas of commercial real estate sales, leasing, and management including land and income producing investment. Please consider contacting us for any commercial real estate needs. The opinions expressed herein are solely those of Younger’s Investment/Land Division. For questions or comments, please contact us:

Robert Grunnah          Robert.Grunnah@youngerpartners.com

Sam Kartalis               Sam.Kartalis@youngerpartners.com

Ali Farmehr                 Ali.Farmehr@youngerpartners.com

Ben McCutchin            Ben.McCutchin@youngerpartners.com

Chris Callicutt              Chris.Callicutt@youngerpartners.com

Cole Bradford              Cole.Bradford@youngerpartners.com

David Hinson               David.Hinson@youngerpartners.com

Don Plunk                    Don.Plunk@youngerpartners.com

Jeremy Lillard             Jeremy.Lillard@youngerpartners.com

John St. Clair               John.StClair@youngerpartners.com

Kevin Harrell               Kevin.Harrell@youngerpatners.com

Lew Wood                   Lew.Wood@youngerpartners.com

Michael Ytem             Michael.Ytem@youngerpartners.com

Nan Li                          Nan.Li@youngerpartners.com

Renzo Cella                 Renzo.Cella@youngerpartners.com

Shawn Street              Shawn.Street@youngerpartners.com

Tom Grunnah              Tom.Grunnah@youngerpartners.com

We have a day for giving thanks. We have two for getting deals. Now, we have #GivingTuesday, a global day dedicated to giving back. On the Tuesday after Thanksgiving charities, families, businesses, community centers, and students around the world will come together for one common purpose: to celebrate generosity and to give. Take advantage of all the holiday deals to add to your charitable giving. Combined with your family, friends, local and national organizations and through the power of social media, National Day of Giving can become a tradition worth passing on.

Today is the last day of the ICSC Texas Conference & Deal Making at the Kay Bailey Hutchison Convention Center, 650 S. Griffin St. in Dallas. We will be in Booth 456 with games & prizes! Here’s the fun so far!

The team did a great job setting up the booth and networking.

The prize package Younger Partners offered.

Our great booth and the cornhole competition space.

The fun didn’t end at the end of the work day. Cocktail parties allowed the networking to continue into the evening.

Busy consumers in the Dallas area who want healthy meal options without the hassles of dining out, fighting crowds, grocery shopping, or spending too much time in the kitchen cooking and cleaning have a new, cost-effective option with the expansion of online gourmet meal preparation and delivery service, Front Porch Pantry.

Launched in March 2016, by founder and managing partner, Michaelann Dykes, Front Porch Pantry is the leading meal delivery service in Texas offering healthy and delicious meals, delivered to your front porch. The unique online gourmet meal prep and delivery service recently signed a new 3,500-square-foot lease at Midway Mills Crossing Shopping Center in Carrollton. The tenant was represented by Tanja Ivandic at Younger Partners. The landlord, Ali Shayan, was represented by Nathan Denton at Lee.“This location is great because the space had previously served as a gluten-free bakery, so the finish-out for a commercial production kitchen was already in place. The location at Midway Road and Trinity Mills Road in Carrollton is central to the entire Metroplex, as well,” Ms. Ivandic says. “We found her a second-generation space in excellent condition to meet the demands of the rapidly growing business. She also has room to expand in this location as her business grows.”“We looked at many spaces on the market before selecting this particular space. Our needs were for a large production-style commercial kitchen with room for future expansion; this space provides for both,” Ms. Dykes says. “With its central location and easy access to major highways, it is great for our delivery service throughout the DFW area.”

Since its inception, Front Porch Pantry has dramatically grown, Ms. Dykes says. Weekly production has increased from several hundred meals, to thousands. What is most satisfying, she adds, is the fact that the majority of her customers continue to order week after week. “That is a true testament to our quality and taste,” she says.The company is so successful that she’s working on rolling out service across Texas in the near-future with the ultimate goal of creating a national brand with distribution nationwide. Ms. Dyke’s culinary excellence and knowledge of nutritional science, combined with her 20 years of experience in design and manufacturing, provided her with the strong background and experience to launch and grow the firm while answering the age-old question of “what’s for dinner” for her family.

The beauty of the concept is that her customers can enjoy greater diversity eating meals at home, while spending less time and money grocery shopping, less time preparing, and less time eating out. For a service often perceived as a luxury, it is notable that most customers are spending the same or less on their overall food budgets, she says.

One thing customers enjoy the most: no meal prep involved — just heat and eat. Ms. Dykes says her customer-base consists of busy families with limited time, singles that don’t want to go to the trouble of cooking for one, and seniors that need a little extra help navigating the meal process.Ms. Dykes says Front Porch Pantry’s specially trained staff selects the freshest ingredients and takes pride in providing high-quality protein, low-glycemic carbohydrates and heart-healthy menu options. Most ingredients are hormone-free, GMO- and antibiotic-free, 100% organic, gluten-free, dairy-free, and heart healthy options.

The company’s success in the DFW area has led to the expansion of services throughout Texas with the ultimate goal of creating a national brand with nationwide distribution. And, just in time to relieve the stress of cooking for the holidays, Front Porch Pantry can help with Thanksgiving, too. Make your selections on the website by Nov. 15 for meals to be delivered or picked up on-site on Nov. 20 and 21.

Front Porch Pantry contact info:

Frontporchpantry.com

(972) 925-0526 phone
(469) 229-8876 fax
contact@frontporchpantry.com

Our annual chili cook-off is the start of the Halloween festivities at YP every year. Without sharing the wonderful aromas and chili tastes, here are a few good looks.

Tonie Auer returns to her 80s roots while Claudia McLeod works her witchcraft.

Lew Wood’s team hard at work on their chili.

Lew perfecting his chili.

The gang awaiting the judging.

The judges hard at work in the seclusion of the break room.

The winning team of Kelly Brannen, Shawn Street, Tonie Auer, Robert Grunnah, and Jeremy Lillard.

Lew was a good loser and didn’t mind showing off his prize: a bottle of Pepto Bismal.

After six batches of chili to try … we can all use the Pepto Bismal.

Today is North Texas Giving Day, the nation’s largest community giving event. Please consider contributing to raise funds for North Texas nonprofits. Younger Partners supports charitable giving by matching our employees’ gifts up to $100 annually. We encourage you to make a gift and support your charity of choice! You can give here. https://northtexasgivingday.org

Younger Partners is growing again. As the Dallas-based boutique commercial real estate firm expands service lines, it has increased its multifamily division expertise with the creation of a new team led by long-time industry veterans Lew Wood and Bob Helterbran. The full-service team capitalizes on their market knowledge, experience and past success to maximize value for their multifamily clients.

Beyond Wood and Helterbran, the team also includes research analyst Cole Bradford and the support of YP’s talented marketing department featuring Britnai Stegall, Vickie Wiltcher, Lacey Queen, Felecia Miskell and the public relations efforts of long-time CRE reporter Tonie Auer.

“Bob and Lew make a great team,” says Younger Partners co-founder Moody Younger. “Our goal is to provide a professional service platform to investors, developers, buyers and sellers. Under Bob and Lew’s leadership, we anticipate overall organizational growth creating value, driving excellence and providing unparalleled customer service.” The multifamily team handles development, acquisitions, dispositions, research and brokerage for all types of multifamily assets.

Lew joined Younger Partners in 2017 with more than 38 years of commercial real estate experience in Dallas. He handles investment sales with a focus on multifamily and office. Previous companies Lew has worked for are Coldwell Banker Commercial Real Estate/CBRE (8 years), Cushman & Wakefield (3 years) and Henry S Miller (10 years). Lew served as an Investment Advisor with the previous companies.  Additional activity includes 10 years as president of Pan American Capital Corp, developer of Deep Ellum Lofts and TVO North America as director of acquisitions (5 years) where Lew directed the acquisition of more than 3,500 apartment units in the TX and LA markets. Lew has closed more than $1 billion in sales of more than 30,000 apartment units, 3,000,000 square feet of office buildings and developed more than 1,500,000 square feet of industrial warehouses into iconic loft projects. Lew served in the U.S. Marine Corps as a non-commissioned officer prior to joining the real estate business.  Lew’s continuing education has earned him a graduate marketing certificate from SMU.

Bob joined Younger Partners in 2015. He specializes in providing acquisition and disposition services for apartment owners. Prior to joining Younger Partners, Bob formed the multifamily platform at Colliers International. Bob’s experience includes REO dispositions, HUD assumptions and land development. Bob was a senior vice president in the multifamily investment service at Colliers and Grubb & Ellis. Before his tenure at Grubb & Ellis, he worked at Transwestern as a senior member of the multifamily investment sales division. During the 1980s, he was a consistent top producer at Coldwell Banker receiving top investment salesman designation for the Central Region three times. Bob’s real estate career began with Coldwell Banker Commercial Real Estate (now CB Richard Ellis) in the mid-1970s. Bob has earned his Certified Commercial Investment Member (CCIM) designation, which means he is a recognized expert in the commercial and investment real estate industry.

Cole recently graduated from TCU with a BBA in finance with an emphasis in real estate. He interned with the land team doing market analysis, prior to graduation.

You can reach Lew at 214-294-8006 or lew.wood@youngerpartners.com and Bob at 214-294-4418 or bob.helterbran@youngerpartners.com

Proud of our own Tanja Ivandic and Garrett Marler. Tanja competed in her rookie year of BvB (Blondes vs Brunettes, which is a powder puff charity football game) and Garrett coached for his second year on Saturday night. The organization’s 2017 event raised more than $650,000 to support finding a cure for Alzheimer’s! #TeamBlonde took home the Dolly Cup. Garrett coached and Tanja made an interception! Here are just a few event photos. #TackleAlzheimers

Team Blonde won the Dolly Cup, which is a cumulative award for the entire season of serving from raising funds to attending events, etc.

Pregame pep talk

Ready to play!

A little intimidation of the opponents never hurts.

Some Younger Partners positivity.

On the field prowess!

Who let a little rain stand in the way of fun and charity efforts! For more on BvB, click here.