acquisitions - Trammell Crow Company

acquisitions
noble energy center one
Houston, tx
d e v e l o p m e n t
2011 Soto
Los angeles, ca
a n d
i n v e s t m e n t
timber creek crossing
dallas, TX
Worth building
los angeles, ca
overview
As of September 30, 2013, Trammell Crow Company
had over $5.2 billion of projects in process and $1.6
billion in its pipeline.
implement strategy & manage property
OUR APPROACH
occupancy coordination
office | industrial | retail | residential | healthcare
Offi ce / geographic Coverage
At l an ta
Ph ila d e lp h ia
Au s t i n
Ph o e nix
Chi cag o
P o rtla nd
Dal l as
S a n F ra nc is c o
D en ver
s e at t le
H o u s to n
Ta m pa
Los A n g el es
Wa s h ingto n DC
N ew p o rt B eac h
Our acquisitions resume crosses all product types:
office, industrial, retail, multifamily, hospitality,
medical office, and land. Our experience is deep, and
our successes are well documented. Though we are
all primarily developers, acquisitions provide a unique
opportunity to make a risk mitigated investment and
then harvest that investment within a single business
plan cycle.
We have proven our capabilities of managing
successful acquisition investments that capitalize on
the following inefficiencies:
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R S H I
P
D E
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develop repositioning strategy
STRONG PERFORMANCE FOR OUR PARTNERS
Trammell Crow Company has repeatedly delivered
on the investment thesis underlying our acquisition
investments. Our partners benefit from our national
reach coupled with local market expertise, along with
our vigilant investment committee review process, our
depth and breadth of construction and development
resources, and our strong capital relationships. The
result is a nimble, strong, and market-leading operator
that brings unique and well-positioned investment
opportunities for its capital partners.
Trammell Crow Company
18.1Msf of Acquisitions
18.1MSF of Acquistions (1997 to present)
(1997 to present)
Office
Industrial
Retail
Medical Office
Hospitality
0.2
1.4
1.7
6.7
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Environmentally-challenged properties
Functionally-obsolete properties
Properties with inadequate market presence
Properties with base building defects
Well-located, under-improved properties
Properties with under utilized site area
Properties that offer a higher-and-better use
8.4
c a pa b i l i t i e s
• Partnership • Entrepreneurship • Leadership
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optimize capital structure
S H I P
U R
programming
(identify and analyze alternatives)
YEARS
E
site, financial, and market analyses
65
1948 - 2013
E
Establish goals and objectives
Over the past 15 years, Trammell Crow Company has
executed over 100 acquisitions deals, representing
more than 18 million square feet of buildings and 250
acres of land, in all regions of the country. In many
of the same ways we create value as a developer
in our local markets, these same strengths promote
the success of our acquisition investments: keen
awareness of local market fundamentals and trends,
strong rapport with the local brokerage community
and municipal planning agencies, and strong aptitude
to create value from real estate.
T N E R S
H
A R
IP
E N T R E P R
Trammell Crow Company, founded in Dallas, Texas in
1948, is one of the nation’s oldest and most prolific
developers of and investors in commercial real estate.
The Company has developed or acquired nearly 2,600
buildings valued at nearly $60 billion and over 540
million square feet. Trammell Crow Company is an
independently operated subsidiary of CBRE, Inc, the
world’s largest commercial real estate services firm,
and retains the spirit instilled in the company by its
founder, Trammell Crow:
O v e r v i e w
P
•
P r o cess
int r o d uct io n
N
ac q u isitio n i n v estme n t
A c q u i s i t i o n
c o m p a n y
a c q u i s i t i o n
p r e v i o u s
ac q u i s i t i o n s
CHALLENGE
The 497,000 SF building was part of the Hewlett Packard
excess real estate portfolio, and was considered a large, single
user building in what was otherwise a secondary, multi-tenant
submarket. HP had been unsuccessful in their efforts to market
and lease the property themselves.
STRATEGY
As an active developer in the area, TCC understood the supplydemand fundamentals and recognized a lack of space for large
users, across the entirety of west Houston suburban submarkets.
The approach was to acquire the property at a competitive basis
reflective of HP’s own leasing challenges, and then execute a
targeted marketing approach to the large users TCC already
knew were in the market.
type: Office Acquisition
RESULTS
Less than thirty days after closing, TCC entered into earnest
discussions with Noble Energy, who subsequently leased 100%
of the property in a 15 year deal. Furthermore, the property
included an adjacent vacant 4.7 acre parcel, which Noble
negotiated expansion/development rights and TCC is now
ground-up developing a phase two project.
B ra nf o rd
Lo s A ng e le s, C a
CHALLENGE
In June 2007, Trammell Crow Company acquired a 33 acre
brownfield site out of Federal Bankruptcy Court. The site,
located in East San Fernando Valley, was a former City of Los
Angeles landfill which was recognized in the community as “undevelopable” and sat fallow in an otherwise vibrant community
for over 60 years.
STRATEGY
TCC worked with over 15 state, regional, and local agencies to
characterize the site, address existing environmental issues, and
complete the process to properly close the prior landfill and make
it viable for future industrial development, and unlock the value
of the underlying real estate.
type: Land Acquisition
RESULTS
In the process, TCC successfully entitled the site for
a 528,000 SF industrial park, and sold the property
pad-ready to Federal Express at a substantial return to
the investors. FedEx subsequently delivered the project
and over 200 high paying jobs to the community,
just five years after TCC initially acquired the broken
property.
e x p e r i e n c e
N o b l e e n ergy c en ter one
h o u s ton, TX
a c q u i s i t i o n
p r e v i o u s
ac q u i s i t i o n s
type: Industrial Acquisition/Repurposing
CHALLENGE
STRATEGY
TCC would have to purchase the building speculatively as
Flextronics did not want to hold a contract on the building while
TCC was looking for a tenant.
In August 2006, a 10 year lease was negotiated with Farmers
Insurance to use as a call center. Included in the lease was a
purchase option, which Farmer’s subsequently exercised. TCC
constructed on-site improvements such as expanding parking
and modifying the exterior of the building to aid in its conversion
from manufacturing to a call center.
A local contract manufacturer, Flextronics, decided to shutter an
Austin manufacturing operation, leaving the building they owned
in north Austin vacant. Trammell Crow Company recognized an
opportunity to purchase the building at below-market pricing and
market it to companies for use as a call center. Many prospects
had been floating in the market looking for call center space
in north Austin due to Austin’s combination of educated and
relatively low-cost workforce.
Trammell Crow Company closed on the building in August
2005 and immediately began making some site improvements
to increase the building’s attractiveness to future users. TCC
also began aggressively marketing the building to companies
looking for call center space in the Austin area.
2011 S oto
lo s a ng e le s, ca
Challenge
TCC identified a 289,000 SF office and warehouse building along
the assumed path of expansion of the University of Southern
California Health Sciences Campus. TCC made multiple offers
to acquire the property, however, the seller had unrealistic pricing
expectations.
Strategy
When the seller went into default on the loan, TCC moved quickly
to acquire the note. TCC used its position as the new lender to
negotiate a reasonable acquisition and transfer of the property.
Once TCC owned the site, they immediately initiated discussions
with USC for an adaptive re-use of the building.
type: Adaptive Re-use Acquisition
Result
TCC recently sold the property to USC after a 14
month hold, and is currently engaged executing the
capital improvements for the adaptive reuse. The
building will have 80,000 SF of office space for the
USC Keck School of Medicine; the warehouse is cash
flowing throughout construction.
e x p e r i e n c e
Lo n g V i sta
Au s t i n, TX
acquisitions
experience
memphis industrial | memphis, tn
city view | san antonio, tx
airport distribution center | oklahoma city, ok
6th & bixel | los angeles, ca
smithsonian institute, COnsolidated collections Storage | landover, md
898 Sepulveda | El segundo, ca
5500 west reno | reno, nv
acquisitions
experience
3402 Pico | santa monica, ca
mckinnon land | vaughan, ontario
riata gateway | austin, tx
Science center | torrey pines, ca
timber creek crossing | dallas, tx
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S H I P
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YEARS
E N T R E P R
65
1948 - 2013
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Corporate Office:
2100 McKinney Avenue
Suite 800
Dallas, Texas 75201
Phone: 214.863.4101
Fax: 214.863.4493
www. trammellcrow. com
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