tylerporter, Author at Skywalker Property Partners

Skywalker Property Partners’ New Fund Sets $250M Buying Plan in Motion

5.1.202324.24.2023 by tylerporter

ARLINGTON, Texas – Skywalker Property Partners has launched its fourth and largest fund, The Leverage Strikes Back LLC, a capital raise with the capacity to make up to $250 million of opportunistic investments in Texas and surrounding states.

North Texas-based Skywalker Property is the fund’s manager. The $20 million capital raise was completed during Q1.

“By year’s end, we anticipate the market will be faced with a wave of maturing loans as owners struggle with refinancing, under-performing projects and tighter capital conditions,” says Gary Walker, president and founder of Skywalker Property Partners. “Our new fund is well-positioned to capitalize on these opportunities.”

The fund will target investments with opportunistic return profiles in the $10 million to $30 million range from brick and mortar to note-buying to joint venture private equity, including distressed assets and new developments. The team has already placed its first contract: a project in the Interstate 35 corridor of Texas.

“We have the agility to meet the market whatever the opportunities may be,” says William Welder, Skywalker Property’s director of acquisitions and capital.

The acquisition strategy will be aimed at multiple asset classes located in primary, secondary and tertiary markets. If all goes as planned, the fund will be 100% invested by December 2025.

“The new fund is a milestone. It’s the largest in our history and a significant shift from our two-year focus on dispositions,” Welder says of the 33-year-old firm.

Skywalker Property’s team will use its deep ties in real estate and banking communities to source investments, as it’s done in the past. It’s anticipated opportunities will abound if interest rates remain at the current level or continue to tick up, further impacting the availability and affordability of capital for critical needs, such as refinances.

“We have longtime relationships with community banks that will enable our success. We are grateful for their steady partnerships,” says Welder, who led commercial real estate lending for One of the nation’s 10 largest financial institutions before joining Skywalker Property in 2021.

The availability of joint venture equity, in essence, is a value-add opportunity for developers and investors facing capital shortages for construction starts, completions or improvements to existing projects being primed for repositioning. The fund manager envisions a portfolio with a balanced mix of asset classes – medical, senior housing, residential and commercial condominiums, retail, mixed use, office and industrial.

“Skywalker Property’s platform and ability to fund investments will benefit our sponsor-partners, who are starting to do larger and more complicated deals,” Welder says. “For investors like us who specialize in opportunistic deals, we may be on the precipice of some attractive opportunities.”

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FOR ADDITIONAL INFORMATION:

William Welder, 817-898-0244

Skywalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of When Opportunity Knocks LLC and Cash Flow Fever LLC, funds formed in 2017 to build a $200 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $2 million to $15 million. Additional information about the investment group is available at www.SkywalkerProperty.com

Skywalker Property Divests of Retail, Office Projects in Two States for Managed Fund

4.24.202324.24.2023 by tylerporter

ARLINGTON, Texas – Skywalker Property Partners has sold a fully leased shopping center in East Texas and a vacant office flex project in Tulsa for its managed fund, Cash Flow Fever LLC, after reaching its investment goals within a four-year hold.

The Texas property is the 30,977-sf High Plaza Shopping Center at 2430 S. High St. in Longview, where Skywalker Property has opted to hold onto the anchor space for the fund’s portfolio. In Tulsa, the disposition is a 20,160-sf office flex project at 3717 S. Sheridan Rd., which was part of a two-building educational campus that was divided in two and sold separately.

“The dispositions were successful investments that had run their course in the fund,” says Gary Walker, managing principal and founder of North Texas-based Skywalker Property. “We take pride in making places better and achieving superior returns for our partners, and we accomplished both goals.”

Skywalker has sold the lion’s share of High Plaza Shopping Center to M&L United Property LLC of Dallas/Fort Worth and held onto a 26,400-sf anchor store. That space is the future home of O’Reilly’s Auto Parts, which is slated to open in late Q2.

The 2.91-acre shopping center was on the market about four months, with M&L banking the win as the highest of three offers. Under Skywalker Property’s watch, High Plaza underwent a major renovation to upgrade the center’s exterior, including the roof, and the parking lot, lighting and monument sign.

“It was an extensive facelift that delivered value for the market,” says Chris Aguilar, Skywalker Property’s asset manager. “O’Reilly’s coming in is a boon for the neighborhood.”

High Plaza is located near the junction of three main arteries in Longview, the county seat of Gregg County and an outdoor recreation hub. The tenant mix features national, regional and local retailers, including Family Dollar, Wing Stop, Metro By T-Mobile and Little Caesars.

The Tide is High Plaza LLC is the seller of record. Tim Axilrod of SHOP Cos. represented the seller and Long Ly of William Davis Realty brokered the deal for the buyer.

In Tulsa, Skywalker Property is exiting the market with the sale to Gravley Holdings LLC, a local digital sign maker and manufacturer. The 1.76-acre project, totaling 20,160 sf, is located at one of the city’s busiest intersections, Interstate 44 and Hwy 64/51 (Broken Arrow Expressway).

“The building is perfect for an owner-user because of its location and size. We’ve just been waiting for the right one to come along,” Aguilar says.

Skywalker Property’s value-add strategy for the educational campus went into play early last year when the net-lease tenant, Miller-Motte College, consolidated into one building and left the fund with a vacant structure. The property was split in two, with the leased piece selling in December 2022. The fund manager also sold the on-site billboard for a profit in a separate transaction that closed earlier this year.

Cash Flow Fever is a yield fund focused on acquiring income-producing properties with upside that can be achieved through renovation and repositioning strategies like separating assets into two pieces to achieve higher yield. The typical hold is four years, with selective assets held for long-term cash flow.

Cooking with Gas LLC, the seller of record, was represented by Michael Schnake and Ward Seibert of Oil Capital Commercial Real Estate Services. The buyer was self-represented.

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FOR ADDITIONAL INFORMATION:

Chris Aguilar, 817-898-0323

Skywalker Property Partners Wraps Up 2022 With Three Office Sales in Texas, Oklahoma

1.11.202324.24.2023 by tylerporter

ARLINGTON, Texas – In a strong close-out of 2022, Skywalker Property Partners has sold a trio of office properties in North Texas and Oklahoma on behalf of three managed funds.

The crown jewel of the divestiture was Brookhollow Riverside, a 119,121-sf office building at 2505 N. TX 360 in Grand Prairie. The disposition also included Crescent Parc, a 61-unit medical and office condominium project at 1400 N. Coit Rd. in far north Dallas, and a 36,590-sf office project, home to Miller-Motte College, at 3801 S. Sheridan Rd. in Tulsa.

“We’re proud of all three projects. They were successful investments that illustrate our ability to create value using multiple strategies,” says William Welder, Skywalker’s director of acquisitions and capital.

Brookhollow Riverside is a prominent freeway-fronting office building that Skywalker has owned since 2006. It was 90% occupied at sale time.

Tom Strohbehn and Scott Farber of Younger Partners marketed Brookhollow Riverside for the seller of record, Down By The Riverside LP. Multiple offers were received, with a Houston-based 1031 Exchange buyer, 2505 North State Hwy LLC, winning the deed. The buyer’s principal was Howard Heald of Silver Creek Realty Advisors LLC.

“We were fond of that asset,” Welder says, “but it was the right time to sell. In spite of general headwinds facing office properties, there is still strong demand for quality multi-tenant assets with a good amount of term remaining on leases, as was the case with Brookhollow Riverside.”

The eight-story structure and parking garage are situated on a 3.3-acre tract with unobstructed visibility from TX 360 and close to Dallas/Fort Worth International Airport. The tenant mix includes multiple federal and state government agencies.

Skywalker’s investment in Crescent Parc in 2021 catapulted the team into a development role for a partially finished medical and office condominium project in McKinney. Capitalized by the When Opportunity Knocks fund, construction was completed on 14 buildings, resulting in the sales of 61 turn-key medical and office condominiums, totaling 64,088 sf, by the end of Q4 2022.

Joe Martinez and Tonya La Barbera of Legacy Commercial Realty represented the seller of record, McKinney Sunrise LLC, for Crescent Parc’s Phase I. The 5.83-acre project is located near the Dallas North Tollway, Preston Road and US Hwy. 380.

Skywalker went the auction route to sell the Tulsa property, which is fully occupied by Miller-Motte College. Underwriting the disposition strategy was a brand-new 10-year net lease.

“It was a strategic decision to take it to market via an auction platform,” Welder says. “We wanted to reach as broad of an audience as possible to maximize the value of the net-leased asset.”

Ten-X was the auction intermediary, with Exponentally Inc. of Houston placing the winning bid. Developed in 1982 and renovated in 2008, the two-story office building is situated on 2.02 acres within a block of Interstate 44.

The Tulsa asset has been in the portfolio of Skywalker’s Cash Flow Fever fund since 2019. Jason Little, Will Lightfoot and Matt Maguire of the SHOP Cos. represented the seller of record, Cooking with Gas LLC. The buyer was self-represented.

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FOR ADDITIONAL INFORMATION:

William Welder, 817-898-0244

Skywalker Buys Mixed-Use Project in Downtown Waco,Sells Eight-Story Office Building in North Dallas

5.23.202224.24.2023 by tylerporter

FORT WORTH – Skywalker Property Partners has purchased a fully leased, class A retail/residential property in downtown Waco in an off-market deal and sold a 227,891-sf office building in North Dallas on behalf of its investment fund, When Opportunity Knocks LLC.

In taking the deed to 330 Austin Ave., the new owner has renamed the project, formerly Austin Avenue Lofts, to The Balconies Downtown. It is a mix of two street-level retail spaces and 41 apartments, all of which are earmarked for future condominium sales. City hall, the convention center, a public park and the world-famous Magnolia Market at the Silos are within walking distance of the property.

Skywalker Property, an experienced condominium investor, has purchased Austin Avenue Flats from the lender. The condo resale play got underway at the closing table with the sale of a 3,500-sf retail condo, leased to American Bank, to a private local investor.

“On day one, we bought and sold that one piece,” says William Welder, acquisitions director for the North Texas-based Skywalker Property Partners. “The transition into individual owners of the condominium units was started a few years ago. We intend to finish it.”

Campus Realtors will manage the residential units and property owners’ association, which includes five previously sold units. Skywalker Property, led by founding principal Gary Walker, will oversee the retail component.

The mixed-use building is positioned on 1.47 acres at the corner of South Fourth Street and Franklin Avenue. The three-story project, completed in 2008, also includes a 6,304-sf restaurant occupied by Coach’s xXx Smoke BBQ.

Skywalker was self-represented in the acquisition for the buyer of record, Bear Force One LLC. The seller, 330 Downtown Waco LLC, was represented by Clay Fuller of Coldwell Banker Commercial.

“It was Gary’s ties to Waco through Baylor University, the Baylor Angel Network and previous investments in the market that led to this acquisition,” Welder says. “He knows and likes the market well.”

In North Dallas, private investor Noel Yi has acquired Crosspoint Atrium at 8131 LBJ Freeway from a related entity of When Opportunity Knocks. The eight-story office building, situated on 3.36 acres, was 60.53% leased at sale time.

Skywalker Property acquired the office building in February 2019, investing nearly $1.3 million into upgrades. The asset was actively marketed by Tom Strohbehn of Younger Partners for the sellers of record, Crosspoint My Heart LLC and WalkOn Properties LLC.

“Multi-tenant office buildings present challenges these days so we decided to pare back our investments in that sector,” Welder says. “The LBJ project presented a strong value-add opportunity for the right buyer.”

The Dallas-based buyer has been an active commercial buyer in the past year. He was represented by Dave Van Etten of Trinity Interests.

“He had 1031 Exchange funds to invest. He made a competitive offer and was able to perform,” Welder adds.

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FOR ADDITIONAL INFORMATION:

William Welder, 817-898-0244

Skywalker Property Sells Three Properties in North Texas

5.2.202224.24.2023 by tylerporter

FORT WORTH – In unrelated transactions, Skywalker Property Partners has sold one commercial asset in Waxahachie and two in Wichita Falls on behalf of two investment funds.

The dispositions are:

a 12,108-sf flex office building on slightly more than one acre at 200 W. Marvin St., Waxahachie. It is fully leased to Kelly Williams Realty;
a 22,130-sf retail project on 2.6 acres at 2600 Central E. Freeway, Wichita Falls. It is 82%-leased to the US Department of Veterans Affairs;
and a 36,879-sf call center on seven acres at 2236 Airport Freeway in Wichita Falls. It is 100% leased to USA800, a subsidiary of The Results Companies.

“We had completed the repositioning of each and made a strategic decision to sell. There is a lot of capital chasing investments in Texas,” says Gary Walker, founder and managing principal of North Texas-based Skywalker Property Partners, the funds’ manager.

All three properties underwent extensive renovations on Skywalker Property’s watch. Each one was repurposed from its original use.

The Waxahachie property was the former home of a local newspaper. Nearly $2.5 million went into converting the structure into a single-tenant building via Skywalker Property’s tenant partnership program, with Keller Williams Realty partnering as an investor and occupant.

Underwriting the changes is the pending close-out of Skywalker’s legacy Hangover Fund. There are three assets remaining in the portfolio, two of which are under contract and a third being actively marketed for sale.

Meanwhile, Skywalker has three properties in various stages of final negotiations to add to the portfolio of When Opportunity Knocks. It’s also sold five projects in the past six months on behalf of the fund’s routine portfolio-churning.

“We had a tremendous number of offers,” Walker says. “It was sold in less than a month to a 1031 Exchange buyer.”

Tim Axilrod of SHOP Cos. represented the seller of record, Second Hand News LLC, a single-purpose entity of Skywalker’s Cash Flow Fever Fund. Michael Kaplan of the Weitzman Group negotiated for the Los Angeles-based buyer, TAZ RLT LLC.

“The Wichita Falls call center is a repurposed grocery store. It too was part of the Cash Flow Fever Fund portfolio

“The call center was auctioned by Ten-X, with SCM Real Estate brokering for the seller of record, Wichita Calls LLC. The winning bid came from a local 1031 Exchange buyer, Star Texan Properties LLC.

The other Wichita Falls property is a repurposed retail center that’s now a government-leased asset. Its one of the few remaining properties in the Hangover Opportunity Fund’s portfolio.

Zack Ficke of Colliers International brokered the sale between the seller of record, Partners After All LLC, and Gray Harbor Capital, a Florida-based investment firm with a portfolio of government-leased properties.

“We are in harvest mode,” Walker says, “and it’s a good time in the market to do so. We aren’t long-term holders. We’re in moving, not storage.”

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FOR ADDITIONAL INFORMATION:

Gary Walker, 817-898-0303

Skywalker Property Partners Sets 2022 Changes in Motion

1.24.202224.24.2023 by tylerporter

ARLINGTON, Texas – Skywalker Property Partners is undergoing a series of internal changes in anticipation of launching new investment funds later in the year.

The firm’s longtime COO, Carol Coffman-Sosebee, has retired while Clint Holland, acquisitions director for more than a decade, will be starting his own firm, Sterling Interests. In line with the leadership changes, William Welder has been promoted to director of acquisitions and capital.

“We are going to miss Carol and Clint. We’ve been together a long time,” says Gary Walker, managing principal and founder of Skywalker Property Partners. “The evolution of SPP is an opportunity for our next generation to grow and lead.”

Walker has realigned the COO’s responsibilities by promoting Rachel Marion to director of accounting and Marijke Van Stichel to director of administration and property accounting. The changes are coinciding with the upcoming full investment of Skywalker Property’s When Opportunity Knocks and Cash Flow Fever funds.

“We are always reviewing our business model to take advantage of market opportunities,” Walker says. “We also plan on investing with Clint and partnering with him on some projects. I’m very excited about the future and our team.”

“We’re going to be fully invested in both funds in the near future,” Walker says. “We’re planning ahead and laying the groundwork now to set up a new wave of investment. We’ll also be investing with other sponsors in addition to leading our own projects.”

Holland joined the firm in 2009 as a consultant and was quickly promoted to acquisitions director. His new office is located in Southlake Town Square, 180 State St., Southlake.

“Now is a good time to go out on my own, given where we are in the funds and the life cycle of my professional and personal life,” Holland says.

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FOR ADDITIONAL INFORMATION:

Gary Walker, 817-898-0303

Clint Holland, 214-632-0744

Skywalker Property, Arlington Orthopedic Associates Close Off-Market Deal for Class A Highlands Tower

11.15.202124.24.2023 by tylerporter

ARLINGTON, Texas – Skywalker Property Partners has parted with one of its most prized office properties, Highlands Tower, in an off-market transaction with Arlington Orthopedic Associates.

The highly visible asset is a 73,859-sf five-story office building at 701 Highlander Blvd., a class A project set on 5.24 acres at the Interstate 20-Matlock Road intersection in south Arlington. The seller of record is This Land is Highland LLC, a single-purpose entity of Skywalker Property’s When Opportunity Knocks investment fund.

“We’re particularly proud of Highlands Tower so it was a difficult decision to sell it,” says William Welder, acquisitions associate for locally based Skywalker Property Partners.

The seller has invested more than $2 million into renovating the 1980s-era multi-tenant office building in the past five years, taking an inside-out approach to upgrade the mechanical systems, lobby, elevator cabs, common areas and landscaping. Highlands Tower is adjacent to Baylor Scott White Orthopedic & Spine Hospital and across the street from the 825,000-sf mixed-use Arlington Highlands. Also close by are the 1.5-msf Parks Mall, USMD Hospital at Arlington and Texas Rehabilitation Hospital of Arlington

“We thought a medical group would be a great potential buyer, given the dense concentration of shopping, dining and neighboring hospitals,” says Gary Walker, founder and president of Skywalker Property Partners.

AOA’s current location is less than two miles from Highlands Tower, offering overflow and expansion space for support and medical services. The multi-tenant project is nearly 66% leased to leading tenants like PNC Bank (formerly BBVA Compass), Keller Williams and an affiliate, H3 Texas LLC.

“Highlands Tower will remain multi-tenant for the foreseeable future while the buyer develops a long-term occupancy strategy,” Welder says.

Keller Williams signed a new long-term lease for 12,518 sf a few months before Skywalker approached AOA about purchasing the building. Tenant improvements were completed in September to the real estate firm’s fourth-floor office.

“Because of our prior relationship with AOA, I was aware of the need for administrative and support space as well as its plans to grow,” Walker says.

Dr. Eric Wieser negotiated directly with Skywalker Property on behalf of AOA Arlington MOB LLC, the buyer of record. Jason Signor of Big Sky Medical served as the buyer’s consultant.

“Highlands Tower is beautiful and a great location. It took a special buyer to get it away from us,” Welder says. “We believe it’s a perfect fit for them.”

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FOR ADDITIONAL INFORMATION:

William Welder, 817-898-0244

Gary Walker, 817-898-0303

Skywalker Property Partners Sells Brand-New MOB Project in Southwest Fort Worth

11.8.202124.24.2023 by tylerporter

FORT WORTH – Skywalker Property Partners has sold a fully leased medical office project in southwest Fort Worth to Ridgeline Capital Partners LLC.

Completed in the spring, the 20,200-sf structure was built on the last commercial tract in the Edwards family’s Clearfork West development. Located at 5612 Edwards Ranch Rd., the two-story MOB was developed by Skywalker Property through its tenant partnership program.

“We were seeking valuations to ready it for market when offers began rolling in. It was under contract before we got it listed,” says Gary Walker, founder and president of North Texas-based Skywalker Property Partners. “Investment demand for medical office properties is at an all-time high.”

Dr. Nathan Lesley of the Hand to Shoulder Center is Skywalker’s partner in the project and the building’s primary occupant. The balance of the structure is leased to Dr. Amber Lesley, a primary care physician with Texas Healthcare and Lesley’s wife, and their associates.

The two-story structure represents Skywalker’s first foray into ground-up development for the tenant partnership program. “The Lesleys started out by pre-leasing part of the building and quickly expanded after a few months at this location,” Walker explains.

The just-sold 1.8-acre property is part of an emerging MOB corridor located within the historic boundary of the former 7,000-acre Edwards Ranch. The area is master planned for 3.2 million sf of office, retail and restaurant space, 2,500 multifamily units and high-end estate homes.

Skywalker’s William Welder, an acquisitions associate, represented the seller of record, I Can See Clearfork Now LLC, a single-purpose entity of Skywalker’s When Opportunity Knocks investment fund. Representing the Dallas-based buyer were Elliot LaBreche and Abigail Kind of the Easton Group.

“Skywalker’s tenant partnership program offered us the most expedient way to expand our practices, including the addition of a physical therapy center,” Lesley says. “By investing in the project, we were able to create equity as part of the process.”

Walker and his team had been searching for existing buildings to retrofit for Lesley when the site became available. “The location and rents worked for our partner’s practice, which is the primary goal of the program. We solved his space needs and he also got to share in the disposition upside,” Walker says.

Skywalker Property’s tenant partnership program is marking its seventh year. “We’ve partnered with diverse industries, including medical, oil and gas, logistics and residential brokerage companies,” Walker says. “It’s been mutually successful time after time.”

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FOR ADDITIONAL INFORMATION:

Gary Walker, 817-898-0303

Skywalker Property Partners Parts With Projects in Texas, New Mexico

8.23.202124.24.2023 by tylerporter

ARLINGTON, Texas – With the market actively pursuing sales, Skywalker Property Partners has sold a hat trick of commercial assets in Texas and New Mexico in back-to-back closings as part of a portfolio-churning for one of its funds, When Opportunity Knocks LLC.

“It’s a favorable time for us to sell. There are not a lot of properties like these on the market at this time,” says Clint Holland, acquisitions director for the North Texas-based Skywalker Property.

The Texas disposition is a 113,406-sf office flex property on 4.7 acres at 6001 Campus Circle Dr. W. in Irving’s Las Colinas Business Park. It was formerly a Fidelity Investments’ data center, which was retooled by the seller to include warehouse space as part of a value-add strategy for its repositioning.

“We demo’d about 35% of the interior to add warehouse space because we recognized how robust the market is for industrial and then offered it for sale or lease,” Holland says.

Vesgro Corp. of Plano, Texas, quickly has scooped up the property for its new manufacturing location in Dallas/Fort Worth. Vacant at sale time, the building features 55,863 sf of data center/support space with heavy power and fiber connectivity; 31,652 sf of warehouse area with a 24-foot clear height; and 25,891 sf of office suites.

Zane Marcell, Chris Stout and Melissa Holland of JLL represented the seller of record, Tech the Halls LLC. The buyer’s broker was Brett Lewis of Lee & Associates DFW.

“Campus Circle is well-suited for an owner/occupant. It made sense for us to sell it to a user and exit the investment,” Holland says.

The New Mexico disposition is a 23,300-sf multi-tenant office building on 1.5 acres at 2945 Rodeo Park Dr. E., which is near the St. Francis Drive-Interstate 25 interchange in Santa Fe. The just-sold asset was the fund’s first investment outside Texas.

Cole Flanagan of Flanagan Investment Real Estate in Santa Fe represented the seller in a direct deal with Urd Verdandi Skuld LLC, a private investor from California, who got an 86%-leased two-story building at a prime location in the city. The tenant roster includes the U.S.

Department of Energy and Benchmark Human Services, which recently renewed 3,115 sf and 3,886, respectively.

About three months ago, Skywalker sold a third asset from the fund’s 11-property portfolio – a former Luby’s, totaling 7,220 sf, on a 1.8-acre pad site at 2124 Boca Chica Blvd. in Brownsville, Texas. Brownsville Speckles LLC acquired the retail project, which is adjacent to an H-E-B grocery store, in a direct deal with Skywalker Property.

“We had three projects in a strong position to sell. The market reacted quickly as we had anticipated,” Holland says. “It’s an active market.”

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FOR ADDITIONAL INFORMATION:

Clint Holland, 817-898-0303

SRH Hospitality and Skywalker Breaking Ground in Mid-August On 182-Key AC Hotel by Marriott Waco

8.9.202121.21.2023 by tylerporter

WACO, Texas – SRH Hospitality Holdings Inc., a veteran developer of top-tier hospitality brands, and Skywalker Property Partners LLC will break ground in mid-August on an AC Hotel by Marriott, the first full-service hotel to be developed in downtown Waco since the early 1980s.

The 182-key AC Hotel Waco is slated to deliver in spring 2023 in the prestigious Magnolia Silos District, which is a designated Qualified Opportunity Zone for investment purposes. To help make the project a reality, the city has partnered with SRH by providing project-related incentives exceeding $13 million over a 10-year period. The incentives are primarily self-fulfilling and will be generated by the AC Hotel.

Centrally located in the downtown, the 2.5-acre infill site is bordered by Mary Avenue, which is envisioned as the city’s “festival street,” South 6th Street and Jackson Avenue. The SRH project will be located directly across the street from Chip and Joanna Gaines’ Magnolia Market at the Silos, less than seven-tenths of a mile from Baylor University and close to several major mixed-use developments that are now underway or in planning stages.

“Waco has evolved into a destination with diverse demand generators from education, business and lifestyle. We see a strong need for an upscale hotel in Waco,” says Paul Barham, CEO of Harrell Hospitality Group, SRH Hospitality’s operating partner and property management firm.

The five-story AC Hotel, totaling 107,700 sf, will feature well-appointed, classic modern suites and a 16,900-sf street-level conference center with break-out rooms and adjoining 4,000-sf poolside terrace. Other amenities are a 7,700-sf ballroom divisible into five salons with ceiling heights of 20 to 22 feet, the highest in Waco’s hospitality inventory; signature restaurant and bar with indoor and outdoor seating; club-level fitness center; and 332-space parking garage. SRH also plans to construct an adjacent two-story, 17,500-sf commercial/retail building with a rooftop terrace.

Rogers-O’Brien Construction Co. is the general contractor. NORR is the architect of record. Interiors were designed by Design Force Corp. and Wild Muse Interiors. Happy State Bank and Petros PACE Finance provided construction financing.

The AC Hotel Waco is the SRH Hospitality’s sixth project in Texas. The Dallas-based development group was founded in 2013 by Seneca Investments, Rochester Real Estate and Harrell Hospitality Group. Skywalker Property Partners has joined the partnership as a sponsor in the Waco project.

“Skywalker has followed the dramatic improvements and growth in downtown Waco. We’ve been underwriting the market and projects for several years,” says Gary Walker, founder of the North Texas-based investment firm and one of two Baylor graduates in the SRH consortium.

AC Hotel Waco will be positioned within three blocks of the city’s convention center, fueling the potential to provide overflow meeting space, host related events and offer additional full-service amenities for convention-goers and tourists alike. The city’s hotel inventory predominately is limited/select service and extended stay, including seven recently completed or under-construction projects.

“Together with the other hotel operators in the market, we want Waco to be seen as the perfect convention, business and leisure destination in Texas,” Barham says.

Waco has emerged from a university-reliant city into a thriving destination due in large part to the Gaines’ investment in the downtown after they became television stars with a cult following of fans and shoppers. Magnolia Market at the Silos, encompassing two blocks, attracts an estimated 30,000 visitors per week. The couple recently acquired a multi-story office building and will be relocating their corporate headquarters to the dynamic lifestyle district.

Nearby, several multimillion-dollar projects are in various stages of development. Baylor University, with a student enrollment exceeding 18,000, is planning to develop a $100 million basketball pavilion, with seating capacity for up to 7,500, and $60 million, 120,000-sf welcome center complex. The construction list also includes the Brazos Riverfront, an active mixed-use waterfront district in the downtown; Julius Kramaric’s expansion of Pivovar, a Czech-inspired brewery, bakery and restaurant; and the Containery, a new shopping and dining venue also in the downtown. Roughly a half-mile from the AC Hotel site are prime attractions like Balcones Distilling, an acclaimed whiskey producer offering tours of its 65,000-sf facility’s historic building; Dr. Pepper Museum & Free Enterprise Institute; Spice Village, a popular boutique shopping destination; and the Brazos River, where outdoor enthusiasts can enjoy boating, canoeing and kayaking.

“Investment by others always makes us feel more confident with our decision to enter a new market,” says Jerry Crenshaw, founder of Rochester Real Estate, the hospitality company’s structuring/finance partner, and Baylor alumnus.

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Add – SRH Hospitality

Contacts:

Paul Barham, 972-788-2220
Jerry Crenshaw, 682-316-2071
Gary Walker, 817-898-0303

About SRH Hospitality Holdings

SRH Hospitality Holdings is a leading Dallas-based hotel development firm founded in 2013 by principals of Seneca Investments, Rochester Real Estate and Harrell Hospitality Group. SRH Hospitality owns and operates a portfolio of Marriott, Hyatt and Hilton-branded hotels in Cedar Park, Frisco, Galveston, Pflugerville, Southlake and Waco, all in Texas.

About Skywalker Property Partners

Skywalker Proper Partners is a multidisciplinary commercial realty firm expertly proficient in sourcing and executing value-add, new development and high-yield stabilized investments. We invest across multiple asset classes including office, medical, flex, industrial and retail primarily in Texas and the Greater Southwest. Our institutional knowledge, resources, and relationships paired with our hands-on approach to real estate investment management have consistently generated better-than-market returns over the last 20 years.