Bright Realty Capabilities Booklet

A
F U L L- S E R V I C E
R E A L
ESTAT E
CO M PA N Y
Whatever we undertake, in business and in life, quality is our goal.
CHRIS BRIGHT
TA B L E O F C O N T E N T S
ABOUT US. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–3
AREA & MARKET OVERVIEW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10–15
MULTI-FAMILY & MIXED-USE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
EXECUTIVE TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
BROKERAGE & LEASING ADVISORY SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
ADDITIONAL SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
NORTH TEXAS TEAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
PROJECT MANAGEMENT, DEVELOPMENT, & CONSTRUCTION. . . . . . . . . . . . . . . . . . . . . . . 21
OUR PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
WHY BRIGHT REALTY?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6–7
ACCOUNTING, ASSET DISPOSITION, & PROPERTY MANAGEMENT. . . . . . . . . . . . . . . . . . 23
CASE STUDIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33–39
JUNE 2016
1
A BO U T
U S
Bright Realty is a full-service commercial real estate
firm based in Dallas, Texas, founded by the late H.R. “Bum”
Bright, former Dallas Cowboys owner and businessman. Today,
his sons, Chris and Clay, direct the real estate activities and 100plus employees within Bright Industries, the parent company to
Bright Realty. Bright Realty’s diverse background in real estate
management, brokerage, development and marketing includes the
delivery of thousands of single-family lots, plus we have solidified
leasing and development deals involving millions of square feet of
retail, office, multi-family and mixed-use.
In addition, Bright Realty is committed to improving the communities
in which we work and live through various charitable endeavors.
Bright Realty has provided continuous support of local organizations such as: Big Brothers Big Sisters of North Texas, University of
Dallas, Texas A&M University, Children’s Medical Center of Dallas,
Baylor University Medical Center at Dallas, Highland Park Public
Library, Lewisville Independent School District and Lewisville
Chamber of Commerce.
2
3
EXECUTIV E
TEA M
CHRIS BRIGHT
CLAY BRIGHT
Chris Bright is the chief executive officer of Bright Realty,
overseeing Bright Realty and its parent company, Bright Industries.
Clay Bright is a member of Bright Realty’s Board of
Managers and manages the operations of Bright Industries.
ERIC STANLEY
DAVID THOMASSON
Eric Stanley is president and chief
operating officer of Bright Realty.
David Thomasson is chief financial
officer of Bright Realty.
• Commercial & Land Brokerage
• Residential Association
Management
• Development & Construction
• Financial Risk Management
• Capital Planning
• Venture Structure
• Retail, Office, & Mixed-Use Leasing
• Multi-Family Development
& Management
• Reporting & Analysis
• Capital Planning
• Finance & Accounting
• Marketing
• Lender Relations
• Project Finance
• Property Management
4
• Long-term Financial Planning
NORTH TEXAS TEAM
"Every individual on the Bright Realty team plays a crucial role in achieving optimal success." –Eric Stanley
EXECUTIVE
BROKERAGE & LEASING
DEVELOPMENT
Chris Bright – CHIEF EXECUTIVE OFFICER, BOARD OF MANAGERS
Clay Bright – BOARD OF MANAGERS
Eric Stanley – PRESIDENT AND CHIEF OPERATING OFFICER, BOARD OF MANAGERS
David Thomasson – CHIEF FINANCIAL OFFICER
Britton Lankford – SENIOR VICE PRESIDENT
Kerry Assa – VICE PRESIDENT
Shawn Hall – VICE PRESIDENT
Tim McNutt, Jr. – VICE PRESIDENT
Paul Harmon – VICE PRESIDENT
Mason Bakken – ASSOCIATE
Lucas Patterson – EXECUTIVE VICE PRESIDENT
Parker Bright – SENIOR VICE PRESIDENT
Aaron Ketchand – SENIOR VICE PRESIDENT, DEVELOPMENT
Chris Martinez – SENIOR VICE PRESIDENT
Gary Grossman – SENIOR VICE PRESIDENT
Eddie Collins – LAND DEVELOPMENT MANAGER
Benton Smith – PROJECT MANAGER
Kenny Fruge – CONSTRUCTION MANAGER
Monica Grayson – DEVELOPMENT COORDINATOR
Elizabeth Kwasigroch – EXECUTIVE ADMINISTRATIVE ASSISTANT
PROPERTY MANAGEMENT
MARKETING
FINANCE & ACCOUNTING
Crystal Morrow – SENIOR PROPERTY MANAGER
Retta Rosi – SENIOR ASSOCIATION MANAGER
Misty Jones – PROPERTY MANAGER, MULTI-FAMILY DEVELOPMENTS
Krissy Kelly – RESIDENT COORDINATOR
Tracy Lucas – VICE PRESIDENT OF MARKETING
Megan DeLeon – VICE PRESIDENT, MARKETING, INTELLIGENCE AND STRATEGY
Teresa Huntoon – ACCOUNT EXECUTIVE
Divina Penaloza – MARKETING SPECIALIST
Liz Chow – MARKETING SPECIALIST
Raecene Collins – SOCIAL MEDIA COORDINATOR
Keegan Smith – SENIOR VICE PRESIDENT
Adam Kieu – CONTROLLER
Ben Simpson – FINANCIAL ANALYST
Deanna Incremona – ACCOUNTANT
Sandra Ramirez – ACCOUNTANT
Elizabeth Redemann – ACCOUNTANT
5
W HY
B RIG H T
BRIGHT REALTY IS
• Client-focused
R E A LT Y ?
Bright Realty has either been the development,
equity or lender partner in hundreds of projects
including thousands of single-family lots,
• Established with a
history of success
• Results-oriented
townhome construction, millions of square
feet of retail, office and mixed-use leasing,
development or lending. Bright Realty has
• Motivated by value
for our clients
Bright Realty’s most recent developments include Castle Hills, a
2,800-acre master-planned community with new single-family
homes, townhomes, and estate homes from the mid-$300,000s to
$3 million and up; the Village Shops & Plaza located in the heart of
Castle Hills which combines retail, office and townhome living; and
The Lakes at Castle Hills, a full-service private country club and
18-hole, 7,356-yard championship golf course. Since the development
of Castle Hills began, the ad valorem tax value to date is over $1.6
billion. The development and management practices of Castle Hills
are led by principles including:
been an active participant in construction
• Comprehensive research, planning and long-term
strategic vision
lending to hundreds of properties as well.
• Environmentally sensitive development and
operations practices
• Outstanding and memorable customer service
• Community involvement and enrichment programs
• Maximizing the value of each property and enhancing the
lives of residents, tenants, vendors and the community
6
Bright Realty’s senior executive team has over 200 years combined
real estate experience in all facets of real estate development,
property management and agency leasing as well as brokerage and
sales of commercial properties. Various executive team members
have worked for top national and global real estate firms prior to
joining Bright Realty. This team has been personally involved in
the direct oversight of over 50 million square feet of real estate
development, management, and leasing for institutional, corporate,
and private ownership of real estate throughout the United States.
Team member certifications include Certified Property Manager
(CPM), Real Property Administrator (RPA), Instructor for BOMI,
and Masters in Corporate Real Estate Candidate of CoreNet Global.
Bright Realty's integrated strategic approach:
• Takes an ownership view over all assignments
• Provides full-service real estate solutions
• Provides measurable accountability
• Provides research and data for decision making
Area & Market Overview
A REA
&
M A RKET
OVE RVI EW
1ST QUARTER 2016 HIGHLIGHTS
• Average 1Q16 Dallas office vacancy rate is 21.9%.
This is down compared to the previous quarter at
22.0% and from 22.1% in 1Q15. This compares to
the 1Q16 national average of 16.1%.
• Average asking office rent rate for Dallas rose to
$22.79 (national average is $31.13), an increase of
3.84% from 1Q15.
• Average 1Q16 Dallas retail vacancy rate is 11.4%.
This remains unchanged compared to the
previous quarter, but down from 12.2% in 1Q15.
This compares to the national average of 10.0%.
• Average asking retail rent rate for Dallas rose to
$17.57 (national average is $20.20), an increase
of 2.2% from 1Q15.
• Average 1Q16 apartment vacancy rate for Dallas
is 5.2%. This is up compared to the previous
quarter and 1Q15 at 4.9%. This compares to the
national average of 4.5%.
• Average asking apartment rent for Dallas rose to
$1,004 (national average is $1,239), an increase
of 4.9% from 1Q15.
10
DALLAS/FT. WORTH – 1ST QUARTER 2016
DALLAS/FT. WORTH INVESTMENT CRITERIA | FIRST-TIER* INVESTMENT PROPERTIES
Pre-Tax Yield (%)
Going-In Cap Rate (%)
Terminal Cap Rate (%)
Anticipated 1-Year Growth Rates
Situs
RERC Est
South
Region
U.S.
Situs
RERC Est
South
Region
U.S.
Situs
RERC Est
South
Region
U.S.
National
Value
South
Value
National
Rent
South
Rent
Offc - CBD
8.0
8.3
8.0
6.5
6.9
6.6
7.2
7.5
7.2
2.1
2.0
2.3
2.1
Offc - Suburban
8.5
9.0
8.7
7.0
7.3
7.2
7.6
7.9
7.9
1.6
1.6
1.7
1.6
Ind - Warehouse
8.0
8.7
8.3
6.6
7.1
6.9
7.2
7.7
7.5
2.3
1.9
2.0
1.8
Ind - R&D
8.4
8.8
8.7
7.2
7.4
7.3
7.8
7.9
7.9
1.9
1.4
1.7
1.5
Ind - Flex
8.4
8.8
8.7
7.1
7.4
7.3
7.8
7.9
8.0
1.8
1.2
1.8
1.4
Ret - Reg Mall
7.7
8.4
8.2
6.5
6.8
6.8
7.1
7.4
7.4
1.2
1.1
1.3
1.4
Ret - Pwr Center
8.2
8.5
8.4
6.9
6.9
6.9
7.5
7.5
7.6
1.7
1.9
1.7
1.9
Ret - Neigh/Comm
8.1
8.6
8.5
6.6
7.0
7.0
7.3
7.6
7.6
2.2
2.4
2.2
2.4
Apartment
7.3
7.8
7.5
5.5
6.0
5.7
6.2
6.6
6.4
2.7
2.1
2.7
2.2
Hotel
9.0
9.3
9.3
7.7
7.9
7.8
8.0
8.4
8.3
2.2
2.0
2.2
2.2
Average
8.2
8.6
8.4
6.8
7.1
7.0
7.4
7.6
7.6
2.0
1.8
2.0
1.9
*First-tier investment properties are defined as new or newer quality construction in prime to good locations.
Source: Situs RERC Investment Survey
CONSTRUCTION/ABSORPTION CHANGE
Quarterly
1Q16
OFFICE
Asking Rent by Age
Asking Rent Distribution
Asking Rent Growth Rate Distribution
YTD Avg
SF
Built
SF
Absorbed
Con/Abs
Ratio
SF
Built
SF
Absorbed
Con/Abs
Ratio
SF
Built
SF
Absorbed
Con/Abs
Ratio
292,000
345,000
0.8
1,278,000
725,000
1.8
292,000
345,000
0.8
Southwest
2,526,000
2,112,000
1.2
2,989,000
2,773,000
1.1
2,526,000
2,112,000
1.2
Avg OPE*
03/31/16
03/31/16
03/31/16
12/31/15
12/31/15
12/31/15
03/31/16
03/31/16
03/31/16
Dallas
CURRENT DALLAS METRO RENT DETAILS
4Q15
Annualized
Year Built
Rent
Low
25%
Mean
Median
75%
High
Low
25%
Mean
Median
75%
High
Before 1970
$19.64
$12.65
$18.72
$22.79
$23.44
$28.00
$47.00
-1.7%
-0.0%
1.3%
1.1%
4.5%
8.5%
1970-1979
1 Year History
SF
Built
3 Year History
SF
Absorbed
Con/Abs
Ratio
5 Year History
SF
Built
SF
Absorbed
Con/Abs
Ratio
SF
Built
SF
Absorbed
Con/Abs
Ratio
3,321,000
0.9
2,050,000
2,298,000
0.9
1,299,000
1,733,000
0.8
$18.66
Southwest
9,513,000
1.3
8,488,000
7,810,000
1.1
5,742,000
5,940,000
1.0
1980-1989
$24.04
Avg OPE*
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
1990-1999
$26.65
2000-2009
$28.22
$22.79
412
275
217
138
57
Under
$16.94
$16.95
$21.23
$21.24
$25.52
$25.53
$29.81
$29.82
$34.10
34
12
As of 03/31/16
5 Year Forecast
22
$34.11 $38.40 $42.69
$38.39 $42.68
Over
Construction/Absorption & Vacancy
66
243
380
154
70
93
58
100
Under
-1.4%
-1.3%
-0.1%
0.0%
1.2%
1.3%
2.5%
2.6%
3.8%
3.9%
5.1%
5.2%
6.4%
6 .5%
Over
As of 03/31/16
SF
Built
SF
Absorbed
Con/Abs
Ratio
Dallas
3,537,000
4,180,000
0.9
Southwest
8,758,800
8,682,000
1.0
Avg OPE*
12/31/20
12/31/20
12/31/20
25
5
20
4
3
15
2
10
1
0
5
Vacancy Rate
2011
Construction
Absorption
2012 2013 2014 2015 2016 2017 2018 2019 2020
Vacancy Rate (%)
All
$31.23
Annualized
SF (in millions)
After 2009
Number of Properties
3,041,000
11,888,000
Number of Properties
Dallas
0
Qtr Ending 03/31/16
*Avg OPE = Average over period ending
CURRENT DALLAS METRO VACANCY DETAILS
DALLAS METRO INVENTORY DETAILS
DALLAS METRO CONSTRUCTION DELIVERIES
Vacancy Rate by Age
Inventory by Bldg Age
Completed, Current, Planned, & Proposed
Office Stock Traits - Metro
Vacancy Rate
Low
25%
Mean
Median
75%
High
Year Built
Before 1970
27.7%
0.0%
6.4%
21.9%
15.3%
30.8%
89.2%
Before 1970
3.0%
Year Built
1960
1988
1985
2016
1970-1979
29.2%
1970-1979
11.0%
Size (SF)
12,000
137,908
85,119
1,844,000
Multi & Single
Tenant
1980-1989
22.2%
1980-1989
54.0%
Dist. to Highway (Mi)
0
1.2
0.4
7.1
Other Office
1990-1999
20.8%
1990-1999
13.0%
Dist. to CBD (Mi)
0.5
11.6
11.8
23.3
2000-2009
14.0%
Dist. to Landmark (Mi)
3.1
14
14.8
24.4
After 2009
5.0%
All
100.0%
2000-2009
17.5%
After 2009
26.0%
All
21.9%
As of 03/31/16
Number of Properties
Year Built
Vacancy Rate Distribution
310
138
137
99
83
81
56
263
Under
5.0%
5.1%
10.0%
10.1%
15.0%
15.1%
20.0%
20.1%
25.0%
25.1%
30.0%
30.1%
35.0%
35.1%
Over
As of 03/31/16
Percent
Low
Mean
Median
High
Totals
-5.9%
2.7
2015
YTD 2016
2016
2017 & Later
2015 & Later
303,672
5,213,544
3,799,443
12,357,749
$8.30
3.3
6.6%
Tenant
Improvements $
17,292,529
29,011,965
21,443
540,808
2,920,000
4,107,550
272,689
22,000
294,689
5,754,352
6,719,443
16,465,299
11,992,125
17,314,529
29,306,654
1.8%
2.6%
By Top 5 Submarket Share, 2015 & Later
Under 50,000
50,000-100,000
100,000-200,000
200,000-500,000
Over 500,000
14.2%
13.1%
9.0%
49.7%
Plano/Allen
Addsn/Crltn/FBmch
Irving
Uptown
Dallas CBD
Other Submarkets
5.7%
$16.30
As of 03/31/16
11,719,436
325,115
34.5%
Leasing
Commission %
Totals
625,299
17.0%
Lease Term
(yrs)
Proposed
3,666,389
As of 03/31/16 Landmark=DFW Airport
Expenses $
(Commercial)
Planned
DALLAS METRO CONSTRUCTION BREAKDOWN
Average Metro Lease Terms
Free Rent
(mos)
Totals
3,041,090
By Project Type, 2015 & Later
As of 03/31/16
CRD %
SF Under
Construction
Completed SF
8.3%
44.1%
Source: Reis, Inc.
11
A REA
&
M A RKET
OVE RVI EW,
CO N T ' D
RETAIL
CURRENT DALLAS METRO VACANCY DETAILS
Before 1970
$15.74
1970-1979
$13.46
1980-1989
$15.33
1990-1999
$19.88
2000-2009
$21.38
After 2009
$25.86
All
$16.54
Low
$8.16
25%
$12.00
Mean
Nonanchor Asking Rent Growth Rate Distribution
Median
$16.54
75%
$15.70
High
$20.05
$31.11
Low
25%
-6.9%
Mean
0.0%
Median
0.7%
75%
0.6%
High
1.8%
9.8%
135
117
63
56
29
21
18
17
3
5
91
286
105
7
26
$11.97
$15.30
$15.31
$18.64
$18.65
$21.98
$21.99
$25.32
$25.33
$28.66
$28.67
$32.00
$32.01
Over
Under
-5.2%
-5.1%
-3.5%
-3.4%
-1.8%
-1.7%
-0.1%
0.0%
1.6%
1.7%
3.3%
3.4%
5.0%
5.1%
Over
Anchor Asking Rent Distribution
Low
25%
Mean
Median
75%
High
$5.62
$8.45
$11.71
$11.19
$14.09
$21.68
As of 03/31/16
Vacancy Rate
Low
25%
Mean
Median
75%
High
Before 1970
10.8%
0.0%
2.4%
12.2%
7.7%
18.0%
51.5%
1970-1979
11.5%
1980-1989
14.8%
1990-1999
9.7%
2000-2009
9.7%
After 2009
12.7%
All
12.2%
Vacancy Rate by Age
12
90
52
55
29
19
19
5.1%
10.0%
10.1%
15.0%
15.1%
20.0%
20.1%
25.0%
25.1%
30.0%
30.1%
35.0%
64
35.1%
Over
As of 03/31/16
(Comm Shopping Centers)
Vacancy Rate Distribution
Year Built
Vacancy Rate
Low
25%
Mean
Median
75%
High
Before 1970
7.7%
0.0%
2.5%
10.5%
7.3%
15.2%
38.9%
Qtr Ending 03/31/16
1970-1979
15.3%
1980-1989
12.7%
1990-1999
6.3%
2000-2009
5.3%
After 2009
3.3%
All
10.5%
As of 03/31/16
Source: Reis, Inc.
215
Under
5.0%
CURRENT DALLAS METRO VACANCY DETAILS
104
As of 03/31/16
Year Built
As of 03/31/16
Under
$11.96
As of 03/31/16
Vacancy Rate Distribution
Number of Properties
Rent
Nonanchor Asking Rent Distribution
Number of Properties
Year Built
Vacancy Rate by Age
Number of Properties
Nonanchor Asking
Rent by Age
(Nbhd Shopping Centers)
Number of Properties
CURRENT DALLAS METRO RENT DETAILS (Neighborhood Shopping Centers)
61
24
16
11
6
7
2
Under
5.0%
5.1%
10.0%
10.1%
15.0%
15.1%
20.0%
20.1%
25.0%
25.1%
30.0%
30.1%
35.0%
5
35.1%
Over
As of 03/31/16
CONSTRUCTION/ABSORPTION CHANGE
Quarterly
1Q16
SF
Built
RETAIL, CONT'D
CURRENT DALLAS METRO RENT DETAILS (Community Shopping Centers)
Mean
Median
75%
High
Low
25%
Mean
Median
75%
High
Before 1970
$22.69
$9.93
$13.15
$18.67
$18.43
$24.77
$36.98
-5.7%
-0.3%
0.5%
0.6%
1.4%
5.3%
$22.78
2000-2009
$24.39
After 2009
$24.24
All
$18.67
SF
Absorbed
Con/Abs
Ratio
29,000
50,000
0.6
229,000
376,000
0.6
29,000
50,000
0.6
205,000
0.8
707,000
994,000
0.7
154,000
205,000
0.8
Avg OPE*
03/31/16
03/31/16
03/31/16
12/31/15
12/31/15
12/31/15
03/31/16
03/31/16
03/31/16
3 Year History
5 Year History
SF
Built
SF
Absorbed
Con/Abs
Ratio
SF
Built
SF
Absorbed
Con/Abs
Ratio
SF
Built
SF
Absorbed
Con/Abs
Ratio
777,000
1,159,000
0.7
474,000
864,000
0.5
519,000
841,000
0.6
Southwest
2,382,000
3,699,000
0.6
1,781,000
2,862,000
0.6
1,748,000
2,630,000
0.7
Avg OPE*
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
12/31/15
Dallas
Construction/Absorption & Vacancy
15
5 Year Forecast
1
SF
Built
Dallas
19
31
17
18
19
11
10
7
4
0
1
33
61
27
1
5
Under
$11.96
$11.97
$15.30
$15.31
$18.64
$18.65
$21.98
$21.99
$25.32
$25.33
$28.66
$28.67
$32.00
$32.01
Over
Under
-5.2%
-5.1%
-3.5%
-3.4%
-1.8%
-1.7%
-0.1%
0.0%
1.6%
1.7%
3.3%
3.4%
5.0%
5.1%
Over
As of 03/31/16
SF
Built
154,000
Annualized
Number of Properties
1990-1999
Con/Abs
Ratio
As of 03/31/16
SF
Absorbed
Con/Abs
Ratio
437,200
473,600
0.9
Southwest
2,267,800
2,743,600
0.8
Avg OPE*
12/31/20
12/31/20
12/31/20
10
.5
5
0
Vacancy Rate
Construction
Absorption
0
Vacancy Rate (%)
25%
Number of Properties
Low
$16.42
SF
Absorbed
Dallas
1 Year History
Rent
1980-1989
SF
Built
Southwest
Nonanchor Asking Rent Growth Rate Distribution
Year Built
$16.39
Con/Abs
Ratio
YTD Avg
Annualized
Nonanchor Asking Rent Distribution
1970-1979
SF
Absorbed
SF (in millions)
Nonanchor Asking
Rent by Age
4Q15
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*Avg OPE = Average over period ending
Qtr Ending 03/31/16
DALLAS METRO CONSTRUCTION DELIVERIES
Anchor Asking Rent Distribution
Completed, Current, Planned, & Proposed
Low
25%
Mean
Median
75%
High
$5.92
$10.00
$13.02
$12.18
$16.07
$23.24
SF Under
Construction
Completed SF
2015
As of 03/31/16
YTD 2016
2016
Totals
2017 & Later
2015 & Later
Planned
Proposed
Totals
Nbhd
445,377
83,359
374,070
156,900
1,059,706
477,470
461,989
939,459
Community
495,039
250,259
136,550
300,000
1,181,848
342,790
338,000
680,790
Power Center
0
0
0
300,000
300,000
515,000
0
515,000
NONANCHOR RENT GROWTH COMPARISONS & FORECAST
VACANCY RATE COMPARISONS & FORECAST
Regional
0
0
0
600,000
600,000
0
349,005
349,005
Asking Rent Growth
Vacancy Rates
Mixed Use
320,719
0
919,500
1,192,500
2,432,719
2,738,684
5,786,930
8,525,614
Quarterly
1Q16
Annualized
4Q15
YTD Avg
1 Year
Quarterly
3 Year
5Year
5 Yr
Forecast
1Q16
Annualized
4Q15
YTD Avg
1 Year
3 Year
5Year
5 Yr
Forecast
Dallas
0.6%
0.4%
0.6%
1.8%
1.8%
1.5%
2.9%
Dallas
11.4%
11.4%
11.4%
11.8%
12.6%
13.3%
11.0%
Southwest
0.6%
0.6%
0.6%
2.5%
2.2%
1.7%
3.6%
Southwest
11.0%
11.0%
11.0%
11.3%
11.8%
12.2%
10.2%
US
0.5%
0.5%
0.5%
2.0%
1.7%
1.1%
3.2%
US
10.0%
10.0%
10.0%
10.1%
10.3%
10.5%
9.0%
03/31/16
12/31/15
03/31/16
12/31/15
12/31/15
12/31/15
12/31/20
03/31/16
12/31/15
03/31/16
12/31/15
12/31/15
12/31/15
12/31/20
Period Ending
Metro Ranks
Total
Metros
1Q16
4Q15
YTD
1 Year
3 Year
Southwest
9
5
6
5
5
80
40
43
40
34
18,119
0
0
182,815
454,550
208,307
662,857
1,425,831
351,737
1,430,120
2,549,400
5,757,088
4,528,494
7,144,231
11,672,725
DALLAS METRO CONSTRUCTION BREAKDOWN
By Project Type, 2015 & Later
11.5%
62.9%
5 Year
5 Yr
Forecast
Metro Rank
Compared to:
Total
Metros
1Q16
4Q15
YTD
1 Year
3 Year
5 Year
5 Yr
Forecast
3
3
7
Southwest
9
6
5
6
7
7
7
7
20
14
48
80
50
49
50
55
59
65
59
US
164,696
Totals
4.9%
Metro Ranks
Metro Rank
Compared to:
US
Period Ending
Other
4.7%
Community
Mixed Use
Neighborhood
Other
Power Center
Regional
By Top 5 Submarket Share, 2015 & Later
16.3%
13.1%
8.7%
18.5%
13.6%
5.4%
Crltn/SE Denton
Far North Dallas
Allen/Frisco/McKinny
Non-Submktd Areas
Irving
Other Submkts
in Metro
10.6%
29.7%
Source: Reis, Inc.
13
A REA
&
M A RKET
OVE RVI EW,
CO N T ' D
APARTMENT
CURRENT DALLAS METRO RENT DETAILS
DALLAS METRO UNIT MIX RENT DETAILS
Asking Rent by Age
Asking Rent Growth
1Q 2016
Quarterly
Annualized
Rent
Avg SF
Avg Rent PSF
1Q16
4Q15
YTD
1 Year
3 Year
5 Year
Studio/Efficiency
$715
544
$1.31
1.3%
0.7%
1.3%
5.5%
6.8%
5.0%
One Bedroom
$884
735
$1.20
0.8%
1.4%
0.8%
5.8%
4.8%
Two Bedroom
$1,138
1055
$1.08
0.9%
1.2%
0.9%
5.0%
4.3%
$1,359
1321
$1.03
Avg OPE*
Low
25%
Mean
Median
75%
High
Before 1970
$815
$601
$767
$1,004
$934
$1,200
$1,930
1970-1979
$815
1980-1989
$869
1990-1999
$1,199
2000-2009
$1,369
4.1%
After 2009
$1,531
3.7%
All
1.3%
0.1%
1.3%
2.7%
3.4%
2.9%
03/31/16
12/31/15
03/31/16
12/31/15
12/31/15
12/31/15
Asking Rent Comparisons
Rent
1 BR
2 BR
3 BR
Studio
1 BR
2 BR
3 BR
Dallas
$715
$884
$1,138
$1,359
Dallas
$1.31
$1.20
$1.08
$1.03
Southwest
$688
$889
$1,122
$1,356
Southwest
$1.29
$1.16
$1.01
$0.96
United States
$1,119
$1,243
$1,451
$1,670
United States
$2.01
$1.55
$1.29
$1.17
As of 03/31/16
As of 03/31/16
418
$1,167
$1,910
4
0
0
1
Low
25%
Mean
Median
75%
High
-6.8%
-1.7%
0.9%
0.5%
2.3%
8.5%
3
12
271
1177
186
17
Under
-16.9%
-16.6%
-9.9%
-9.8%
-2.9%
-2.8%
4.1%
4.2%
11.1%
11.2%
18.1%
2
2
18.2% 25.2%
25.1%
Over
Qtr Ending 03/31/16
DALLAS METRO UNIT MIX INVENTORY DETAILS
$1,500
Average Unit Size (SF)
4.8% 2.6%
Studio
1 BR
2 BR
3 BR +
$1.50
$1,000
$1.00
7
$1,911 $2,655 $3,399 $4,143 $4,887 $5,631
$2,654 $3,398 $4,142 $4,886 $5,630 Over
As of 03/31/16
Asking Rent Growth Rate Distribution
Metro Unit Mix
$2.00
43
$1,004
As of03/31/16
Asking Rent Per SF
Studio
1214
Under
$1,166
Number of Properties
Three Bedroom
Year Built
Number of Properties
Current Metro Average Rents & Sizes
Asking Rent Distribution
39.7%
Dallas
Southwest
US
1,500
1,000
52.9%
500
$500
$0.50
Dallas
Southwest
US
$0
Studio
1 BR
2 BR
3 BR
$0.00
Dallas
Southwest
US
Studio
1 BR
2 BR
0
Studio
1 BR
2 BR
As of 03/31/16
3 BR
3 BR
As of 03/31/16
15,000
6
10,000
4
5,000
2
0
Source: Reis, Inc.
14
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0
Vacancy Rate (%)
*Avg OPE = Average over period ending
Number of Units
Construction/Absorption and Vacancy
Vacancy Rate
Construction
Absorption
SINGLE-FAMILY LOT DEVELOPMENT
DFW: NEW HOME MARKET VITAL SIGNS - 2Q15—1Q16
$10.51
$348,619
$271,849
$324,198
Annual Starts
21,121
7,994
29,115
Annual Closings
17,952
7,407
25,359
Finished Vacant Homes
Month Supply
Homes Under Construction
Month Supply
Vacant Developed Lots
Month Supply
2,717
1,229
3,946
1.8
2.0
1.9
10,799
3,577
14,376
7.2
5.8
6.8
35,936
15,134
51,070
20.4
22.7
21.0
80.0
80
60.0
60
50.0
40.0
40
30.0
10.0
0
0.0
Analysis
+19.5%
40,000
29,115
Annual
Closings
30,000
20,000
+14.9%
10,000
Starts
Closings
Lot Deliveries
0
2003 2004 2005 2006 2007 2008 2009
2010
2011
2012
2013
2014
2015
2016
25,359
21.0
Vacant Lots
Month Supply
Equilibrium
Historical Month Supply of Vacant Lots by Category
Nearly one-third of the
development pipeline in
DFW is focused on the
$221-284K range.
Share of development
pipeline for projects
planning to serve the
$285-345K price range
grew from 15% to nearly
20% this quarter.
25.0
35%
30%
Market Share
Annual Rate
Year-Over-Year Change
50,000
Month
Supply
20.0
20
DFW: VDL/PIPELINE INVENTORY BY EST HOME PRICE
Annual
Starts
51,070
70.0
DFW: STARTS, CLOSINGS, & LOT DELIVERIES
60,000
Total
Vacant Lots
90.0
100
20.0
25%
20%
15.0
15%
10%
Month Supply
$2.60
Total Vacant Lots
Month Supply
Median New Home Price
$7.91
DFW
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
$ Volume Starts (in billions)
Ft. Worth
Total Vacant Lots (in thousands)
Dallas
DFW: VACANT LOT SUPPLY
10.0
5%
0%
0.0
Up to $220K
$221-284K
$285-345K
Vacant Developed Lots
$346-445K
Lots Under Development
Over $446
Month Supply
Source: Residential Strategies, Inc.
15
Services & Solutions
BROKERAGE & LEASING ADVISORY
Whether it’s a grocery-anchored retail center or one million square feet of office space, we know what it takes
to address the needs of businesses. Research, analysis and a solid understanding is the foundation of our real estate practice allowing us to
negotiate from a position of strength. In each transaction, we have a clear understanding of the project goals and work with you to find a
unique solution that fulfills your real estate needs. When you partner with Bright Realty, you gain the experience, insight and expertise that
has driven our own success. At Bright Realty, we also offer fully integrated leasing advisory services for both tenant and owner in all aspects of
project leasing, sales and brokerage of office, retail and land assets.
377
NORTH
360
Denton
Durant, OK
McKinney
Anna, TX
Southmayd, TX
35E
Little Elm
Frisco
121
The Colony
75
SERVICES OFFERED
Plano
Lewisville
• Third party project leasing
• Property assessment
• Acquisition and disposition
• Tenant representation
• Prospecting, marketing and
repositioning strategies
• Strategic planning
• Land brokerage
• Investment sales
635
• Development services
77
635
• Asset disposition
183
Irving
• Project management and
accounting services
80
DALLAS
FORT WORTH
Weatherford
• Marketing firm in-house
30
Arlington
TENANT REPRESENTATION
Murphy
35E
820
OWNER REPRESENTATION
Grand Prairie
45
30
• Financial analysis
• Comprehensive lease negotiations
• Construction management and
tenant retention programs
• Access to full memberships
of CoStar and LoopNet
• Web-based Propensa for up to
the minute leasing activity
• Site selection
• Financial and market analysis
• Economic incentive analysis
• Lease auditing
• Comprehensive lease and
sale negotiations
• Project management and
construction
360
• E-mail marketing to a database
consisting of over 2,000
commercial real estate brokers
35W
20
35E
WEST
EAST
Strawn, TX
Kaufman, TX
• Flyers, demos, signage and the
latest market research
DeSoto
THIRD PARTY
Listing
For Sale
BRIGHT ENTITIES
Management/Leasing
For Sale
SOUTH
19
West, TX
0
1
2
3
4
5 mi
P R O J E C T M A N A G E M E N T, D E V E L O P M E N T,
& CONSTRUCTION
Our development and construction division provides an array of services from tenant finish-out, renovation of
existing structures and start-to-finish project management. With experience in fields such as site analysis and acquisition, design consultation
and oversight, government relations, budgeting, and strategic planning, our team can manage projects of all sizes and levels of complexity.
CONTRACT ADMINISTRATION
SERVICES OFFERED
• Cost planning
• Association studies
• Civil engineering,
architectural,
and governmental
requirement/approval
coordination
• Accounting management
and financial reporting
• Environmental studies
• Construction management
• Debt and equity servicing
• Contract management
• Castle Hills Village Shops Phase 3
• Kiddie Academy
• Phase 7 Single-Family Residential
• Program management
• Relocation management
• Tenant improvement
management
• Lease negotiations
• Build-to-suit management
• The Villas at Castle Hills Single-Family Residential
• The Lakes at Castle Hills Pool and Surrounding Landscape
PROJECT MANAGEMENT
• Strategic site planning
Over the past several years, Bright Realty has successfully managed
over $240 million in real estate development projects in Castle Hills
with our in-house infrastructure, contract administration, e-Builder
Enterprise and Yardi Voyager systems, including:
• Site assessment and
due diligence
• Tenant build-out
management
• The Lakes at Castle Hills Clubhouse Renovation and addition
of Fitness and Wellness Center
• Phase 8 Single-Family Residential
• Tract F3 Commercial Pad Sites
• Crown Centre at Castle Hills Office Park
• Discovery at The Realm Multi-Family
• The Villas at Castle Hills Phase 2 Single-Family Residential
CONSTRUCTION
• Construction estimating
• Construction oversight
• Project close-out and
hand-off
• Scheduling and
coordination
• Phase 9 Single-Family Residential
• Phase 11 Single-Family Residential
• Starbucks Anchored Retail Center
• SEC JWH Commercial Pad Sites
• Castle Hills Village Shops Phase 5
21
ACCOUNTING, ASSET DISPOSITION,
& PROPERTY MANAGEMENT
ACCOUNTING
ASSET DISPOSITION
Taking advantage of technological enhancements allows Bright
Realty to create a sales approach that focuses on features that are
most important to the prospect, resident, office or retail tenant.
Bright Realty’s cutting-edge accounting platform (Yardi Voyager)
leverages a comprehensive suite of accounting and reporting
features that allows for real time reporting and complete financial
controls. Key functions include:
The asset managers at Bright Realty can provide repositioning
recommendations, capital improvement resources and other services
to market your REO property. Bright Realty has access to a national
network of real estate professionals and organizations including:
• Financial forecasting and
annual budgeting
• Production of financial
statements
• Monthly financial reporting
• Budget monitoring
• Web-based financial
management
• Cash management
• North Texas Commercial
Association of Realtors
• Building Owners and
Management Association
• LoopNet – Premium
Membership
• Institution of Real Estate
Management
• CoStar – Full Membership
• U.S. Green Building Council
• International Council of
Shopping Centers
• Urban Land Institute
• Real-time data
• Green Built North Texas
• Review of payables
PROPERTY MANAGEMENT
Monthly Online Reporting includes:
• Profit and loss summary
• Reconciliation summary
• General ledger
• Budget variance summary
• Bank deposit summary
Bright Realty’s commercial property management capabilities
allow for the highest level of professional management related to all
aspects of the property including thorough analysis and execution of
operations as well as financial performance objectives. Key functions
include:
• Operations and
engineering services
• Vendor management
• Concierge services
• Building operations
• Tenant relations
• Procurement strategies
• Policies and procedures
• Quality assurance
• Energy management
23
M U LT I - FA M I LY & M I X E D - U S E
L I V E H E R E | S H O P H E R E | O F F I C E H E R E | P L AY H E R E
Bright Realty set out to create a new standard
in mixed-use developments, while focusing on a key strategy
comprising retail, entertainment, office and loft units, directly
adjacent to a sizable multi- and single-family residential area.
The Realm at Castle Hills, a mixed-use project to be built along
State Highway 121 frontage with Bright Realty as the developer,
will consist of:
• 5,000+ multi-family units
• 1.4 million+ SF of retail, office, restaurant, and entertainment
• 324 total developed acres upon completion
Discovery at The Realm, the first project to fulfill
Bright Realty’s upcoming plans for The Realm at Castle Hills, will
be a collection of apartments and multi-story rental units within
a walkable community including parks, trails, resort-style swimming
pools, water features and a lakeside promenade. Phase One will be
developed in three podium-style buildings and includes:
• 423 apartments
• 34 multi-story units
• 23.271 acres of land
The first available units delivered in April 2016 with all phase one
units delivered by October 2016.
The Realm at Castle Hills is the next step in creating an urban
synergy of the best elements of leisure, dining, entertainment,
living and working.
25
ADDITIONAL SERVICES
NEW HOME CONSTRUCTION
As the developer of single-family lots, Bright Realty is responsible
for the majority of horizontal development for American Legend
Homes and Belclaire Homes.
GOLF COURSE
As the developer of The Lakes at Castle Hills, a private, full-service
country club featuring an 18-hole championship course, Bright Realty
is redefining golf course strategy, operations, and management.
MARKETING SERVICES
Bright & Co. Marketing (BCM) is a full-service marketing group
for Bright Realty, offering developers, brokers, and homebuilders a
distinct advantage in the highly competitive real estate industry.
WEALTH MANAGEMENT
Bright Equities is a family-owned financial firm offering full family
office services, and an equity sourcing partner for Bright Realty.
COMMERCIAL LANDSCAPING
Infinity Lawnscape is a full-service maintenance provider for
golf course operations, landscape installation and maintenance,
swimming pool operations, and facility maintenance.
27
OUR PROCESS
Bright Realty can look at any project from
PROPERTY
all sides and determine how to create the
ASSESSMENT
most value. Our process can be defined by
•
Conduct financial analysis
•
Manufacture and professionally
install property signage
•
Research updated market data
the following initiatives:
REPORTING
•
Prepare extensive reports of prospect activity to ownership through Propensa
•
Provide all property information, tours and marketing materials to broker and
tenant prospects
•
Provide recommendations to client on maintenance and housekeeping
PROSPECTING
Within the past
MARKETING
60 years, Bright
•
Create marketing flyers and informational packets
•
E-mail market to a broker/tenant database
Realty has been
•
Connect with thousands of real estate professionals at
the International Council of Shopping Centers (ICSC)
Recon Las Vegas and ICSC Texas Conference and Deal
Making Convention
•
Market to the North Texas Commercial Association of
Realtors mailing list
•
Feature properties on the Bright Realty website:
www.brightrealtyco.com
•
Target relevant brokers
•
Identify pertinent tenants in the market
•
Identify operators not present in the trade area through cold calls
•
Showcase properties in Bright Realty’s monthly newsletter
•
Tour local brokers and exhibit properties
•
Display properties on CoStar and LoopNet websites
•
Expedite RFP responses and negotiations
•
Network at industry luncheons and events
involved in billions
of dollars of real
estate investments
as the lender, equity
provider, developer,
and broker.
29
Case Studies
CASE STUDIES
WOODLAND WEST
CUSTER SQUARE
SHOPS AT BETHANY
MURPHY FORUM PLAZA
Size: 176,414 SF shopping center
Size: 10,700 SF building
Size: 9,459 SF building
Size: 10,168 SF building
Location: NWQ Park Row and Bowen Road, Arlington, TX
Location: NEQ Custer Road & Hedgcoxe Road, Allen, TX
Location: 740 Greenville Ave, Allen, TX
Location: 703 FM 544, Murphy, TX
Owner: Glenborough, LLC
Owner: CME Development
Owner: RTG Capital
Owner: CME Development
Goal: Re-tenant a struggling Tom Thumb anchored center
Goal: The project began in 2008, lost funding due to the recession,
and in 2012 Bright Realty was hired to pre-lease the building
Goal: Bring the center purchased out of foreclosure to 100%
occupancy and prepare to sell
Goal: Client purchased the center out of foreclosure with the goal
to fully lease the center and sell
Strategy: Identify and target best tenants for long-term success
of center
Strategy: Identify strong users for vacant spaces
Strategy: Re-face the center and change an under-performing
restaurant space that went through four different operators
Strategy: Replace under-performing, below market tenants and
renew good tenants
RESULTS
RESULTS
RESULTS
RESULTS
Renewed, and in some cases expanded,
select current tenants
Within one year Bright Realty successfully
pre-leased 100% of the center
Bright Realty brought the center to 100%
occupancy and the client sold the center
for an outstanding return less than one
year after purchasing
Bright Realty brought the center up to
100% occupancy including a long-term
lease with a dental practice for the
troubled, former restaurant space
Leased to Anytime Fitness and a new
concept, Unleashed by Petco
Over 30,000 SF of new tenants and
renewals
33
1909 Pleasant Ridge
CASE STUDIES
Dry Cleaner
1909 PLEASANT RIDGE
DRY CLEANER
Size: 3.34 acres
Size: 5,250 SF building on .794 acres
Location: 1909 Pleasant Ridge, Arlington, TX
Location: Custer Road & Hedgcoxe Road,
Allen, TX
Owner: Bank Foreclosure
Owner: Bank Foreclosure
Goal: Identify the appropriate buyer for fast sale
Strategy: Bright Realty targeted, identified, and
educated an investor on the profit potential of a
purchase and 3-5 year hold
Goal: Bank wanted to get non-performing
asset off the books at a good price, as soon
as possible
Strategy:
Results: Bright Realty sold the property to an
investor within the calendar year
• Second dry-cleaning tenant foreclosure at the
property
• Bright Realty identified an optimal use for and
successfully sold the property
Results: Bright Realty sold the land to
Goodwill Industries
35
4228 N Central Expressway
CASE STUDIES
4228 N CENTRAL EXPRESSWAY
TRACT F3
Size: 55,585 SF office building
Size: 100 acres total
Location: Fitzhugh Ave and US Hwy 75, Dallas, TX
Location: Sam Rayburn Tollway Frontage,
Lewisville, TX
Tract F3
Owner: Bright Realty
Owner: Bright Realty
Goal: Develop mid-rise office building to house Bright
Industries Headquarters and lease remaining space
Strategy:
• Bright Realty identified an optimal location,
purchased the land, developed and built a four
story building with an additional 62,411 SF of
structured parking on 1.093 acres
• Bright Realty managed the property and
leasing efforts
Goal: Develop 100 acre tract that sits adjacent
to a Super Target anchored center and Nebraska
Furniture Mart fronting Sam Rayburn Tollway
Strategy:
• Develop and sell pad sites on land fronting
Sam Rayburn Tollway
• Develop single-family lots on remaining land
Results:
Results: In 2014 Bright Realty sold 4228 N
Central Expressway
• Bright Realty developed and sold 9 pad sites
on 19 acres fronting the Sam Rayburn Tollway
to national retailers
• Developed 379 lots delivered to American
Legend Homes and Highland Homes on the
remaining 81 acres
37
Castle Hills Village Shops
CASE STUDIES
CASTLE HILLS VILLAGE SHOPS
DISCOVERY AT THE REALM
Size: 4 buildings, +/- 137,400 SF
Size: 423 apartments and 34 multi-story units on
23.271 acres
Discovery at The Realm
Location: In the heart of the master-planned
community Castle Hills, Lewisville, TX
Location: Windhaven Parkway and Castle Hills
Drive, Lewisville, TX
Owner: Bright Realty
Owner: Bright Realty
Goal: Create a village center to invigorate the
community by providing a place for residents
to congregate
Strategy: Develop, build, manage, and lease
over 115,000 SF of retail, townhomes, office, and
restaurant that will connect with residents creating
a social hub for the entire community
Results:
• 100% of townhomes sold
• Over 85% occupancy and Phase V plans
are underway
Goal: To plan, finance and begin construction of
Discovery at The Realm (the first phase of The
Realm at Castle Hills, a mixed-use urban project
within a suburban market)
Strategy: Finance the project with as much leverage
as the market will bear, given rising rental rates
and historically low cost of funds. Develop a market
analysis which supports pushing the value of the
property, allowing Bright Realty to maximize the low
cost senior debt and obtain mezzanine financing.
Results: Allowed Bright Realty to finance the project
to approximately 83% loan to cost, with a blended
rate of interest at historically low levels. This allowed
Bright Realty to highly amenitize the project while
also conserving cash.
39
CONTACT
2520 King Arthur Blvd.
Suite 200
Lewisville, TX 75056
(972) 410 · 6600
brightrealtyco.com