Dallas October 2022 Key Take Aways!
Mike Lilly, Partner at Griffith Davison, shared that a client of their firm who has business north of the DFW metroplex shared that in the last year, land prices have increased by 300%. The reason for such a large increase in a short amount of time is the DFW area is migrating further north towards the Sherman/Dennison area. In fact, Texas Instruments has chosen Sherman to build a semi-conductor chip fabrication plant.
Murphy Holloway, a Senior Associate with Greysteel, shared the following:
- Greysteel focuses on new client origination, maintaining existing client relationships, overseeing all investment underwriting and sales of Section 42 LIHTC, Project-Based Section 8, and Naturally Occurring Affordable Housing assets in Texas, Oklahoma, Louisiana, and other states in the Central United States. Murphy oversees internal processes for underwriting and due diligence management for the Central Affordable Housing team.
- He said that “Dallas feels like the center of the universe and feels very fortunate to live and work in the DFW area”. Dallas is growing very well because there is still “so much room in and around the DFW metroplex”.
- The market is “re-pricing itself and people are very mindful of what interest rates are doing right now”. Also, it appears the interest rates will continue to increase which will cause a slow -down in transactions.
Hunter Taylor, attorney at Griffith Davison, shared that his primary focus is to serve the firm’s clients in corporate and transactional matters. His corporate law experience assists him well when handling complex business matters and uncover relevant insights to help clients see the big picture.
Stephen Scott, Founder of Equity Capital Person, has been in the commercial real estate business for 48 years.
- He specializes in assisting developers/borrowers and raising equity capital. With these skills he continues to be extremely successful with investment banking, negotiating contracts / leases and an array of related legal documents, teaching real estate investment principles, selling, and financing income-producing commercial properties. Also, he is among the best at providing equity capital and high LTC construction loans (up to 100%), and very few commercial real estate professionals have more experience in this area.
- His specialty is to represent borrowers for a special kind of real estate development called “Build to Suit” which basically means the following: a commercial building or space specifically constructed to the client’s needs and this process focuses on one end user. Most generally, companies, or an individual, hires him to see the project through. The developer will acquire, take ownership, and manage the risk and the tenant, in turn, will lease the property from that developer.
James Smith with Smith, Jackson, Boyer and Bovard has been extremely busy the past few weeks because the “drop dead day” for all tax filers was October 17th.
- From a real estate standpoint, he feels that things “should remain positive with the caveat that deals continue to slow down”.
- The single-family housing market is doing “OK” because the upper tier of that market is paying cash so they don’t need a loan. The middle range is being hit hard and the beneficiary of all of this is multi-family.
- He sees “nothing new on the horizon” regarding any major tax changes that would affect the real estate industry.
- Mobile home parks as well as storage facility businesses are “booming”.
- The IRS “are getting back in business and we are seeing increased activity”. There is a current 10-year plan in place to hire 87,000 employees and training them and getting them experience enough to handle phone calls, both answering and responding, mail and email correspondence as well as other job responsibilities.
Mariel Maretti Mendoza is a Partner of Real Estate Division with ArCcanto shared the following information:
- 70% of her business is Mexico based where she procures debt and capital for her clients/developers.
- 30% of her business is in Texas because some of her clients want to find projects “to the North” mainly for multi-family so she helps them on to raise debt for the purchase of the multi-family. Most of her clients have the initial capital but they don’t know where to buy, what to buy, etc. so she advises them in the direction of who to speak to, how best to raise debt, what direction they should go in to find what they are looking for, mostly because they don’t have the connections needed to follow through to the next level. In other words, she is “100% advising but not actually doing”.
- She is both a broker and advisor – she will advise the client who isn’t familiar with the real estate market in Texas on how much capital they need to raise from private investors as well as how much debt they need to raise. Then she follows clients “all the way through the process, to the closing and at times post-closing”.
- She is also trying to find a U.S. based lender who is willing to look at projects in Mexico for the middle market.
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