Monthly Archives: March 2015

Trademark’s “Conscious Place” Initiative Featured in SCB

Conscious Development
Trademark Property Co. is developing projects with the community in mind. The ambitious developer has nine retail and mixed-use projects underway across the country.

Interview by Randall Shearin  –  CLICK HERE  for the full article

 

Shopping Center Business recently in­terviewed Terry Montesi, president and CEO of Trademark Property Company, and a speaker at our recent Entertainment Experience Evolution Conference at LA Live in Los Angeles. Trademark is known for adding value to properties through development and re­ development. The company is arguably the busiest retail developer in the busi­ness today, with nine large scale projects underway, Based in Fort Worth, Texas, the company is active nationally and has built a staff of over 100 people, many of whom joined the company due to its development philosophies and methodologies, which are different than many traditional development companies. SCB met Montesi at his office in Fort Worth, which itself was bustling amidst expansion and renovation.

SCB: What inspired you to start Trademark?

Montesi: I grew up in the retail busi­ness in Memphis. My family owned an independent grocer. My grandfather de­veloped the first grocery superstore in the country; in 1960, he built a 63,000-square­ foot grocery store. People from allover the country took pilgrimages to Memphis to see the store. At the time, Safeway was building 30,000-square-foot stores. I went to graduate school at the University of Texas; when I finished I went to work for Lincoln Property Co. in their office leas­ing division. When the real estate crash happened in Texas in 1986, I left to start a leasing and management company. In 1992, I started Trademark. The company was originally founded out of a downturn in the Texas economy to buy distressed retail properties. We were buying a lot of properties from the Resolution Trust Corporation, especially shopping centers and flex properties. After all that was sold, the market had fully recovered and there was a need for new development. We evolved the company into a develop­ment company. Since then, we have de­veloped or invested in over 11.5 million square feet and over $2 billion worth of properties. Our operating portfolio is over 6 million square feet.

SCB: For many years you were known as a big box and lifestyle center developer. How have you evolved that business?

Montesi: Today, our business today is two-pronged: regionally, we have a mar­ket-dominant community center busi­ness and nationally we have a program to redevelop non-viable lifestyle retail and mixed-use real estate. On our community platform. we have strong centers like Alli­ance Town Center and Waterside. Most of those centers are grocery-anchored or big box-anchored with experiential com­ponents. Many of our projects are hybrid and don’t exactly fit in a box. Our national business revolves around lifestyle centers, regional malls and mixed-use properties. Our track record with both sectors has been very good over the last 23 years.

SCB: Do you generally intend to sell properties after redevelopment?

Montesi: We have an average hold time for our properties of about seven years. We have institutional investment part­ners in most deals. Even though we hold a property that long, we have achieved a 20.5 percent IRR historically. We usu­ally sell to the institutional investment community, including REITs, pension advisors and some large private owners. When we invest, we intend to hold for a long period. We are not a merchant builder. With our institutional investment partners, we are not a public company who is forced to do something or a mer­chant builder who is building to sell. We have a specialty of turning around retail­ centric places or adding innovative retail experiences to those that need a fresh look. Our company’s purpose is to be extraordinary stewards, enhance commu­nities and enrich lives. You can interpret that in a lot of different ways. We are
able to do that; we really do change the community and enrich the lives of the investors, the people in the communities we serve, and our employees. We love the stewardship role in that. We have an institutional approach with an entrepre­neurial, innovative mindset.

SCB: Some of the properties you are known for, in recent years, have included Alliance Town Center, Market Street – The Woodlands and La Palmera. What are some other projects you are working on?

Montesi: We’ve recently begun work on Rice Village for Rice University in Houston. The Rice Village Arcade is their largest holding – which we are rebrand­ing – and we are working on a few other properties for them, re-envisioning and redeveloping them allover the next few years. We’ve also started a major redevel­opment at Saddle Creek in Germantown, Tennessee, near Memphis, and a project in downtown Napa, California. We’re also involved in Victory Park in downtown Dallas. We have two projects here in Fort Worth that we have under development, including WestBend, where we are sitting now, and Waterside, about three miles away. In addition, we are in the process of evolving and will be developing three of our newest acquisitions – Uptown Vil­lage at Cedar Hill, The Shops at Highland Village and Burr Ridge Village Center.

SCB: You had a lot of success with La Palmera, the redevelopment of a regional mall in Corpus Christi, Texas. Do you see some of the successes you’ve had with La Palmera and other regional malls be­ing applied to other malls around the country?

Montesi: Yes, but every mall is differ­ent. Every solution is different. My chief thought on redeveloping malls is that you should never assume that a trade area is dead. If we take La Palmera and Corpus Christi as an example, the trade area’s average income is not that high. You would think that area would not support a mall that performs at $650 per square foot. However, there are a number of wealthy people in that market, and you didn’t see them inside the mall before it was redeveloped. They drove to San Antonio for most things, but they were going to the Dillard’s; that store was outperforming the rest of the mall. Corpus Christi is also a gateway to the beaches and you have a lot of second home owners. The physi­cal plant of the mall did not meet the aspirations, needs and expectations of the affluent customer. There are a lot of places where the best retail in the trade area is not meeting the needs of residents. Uptown Village at Cedar Hill, The Shops at Highland Village and Saddle Creek in Memphis are other projects we’ve been involved with that had the same issue. We believe that there are segments of the population in those markets who are driv­ing to other centers because these centers weren’t meeting their needs.

SCB: You are working on three large scale urban projects right now.

Montesi: Yes, WestBend in Fort Worth; Napa Center in Napa, California; and Vic­tory Park in Dallas. These are going to be urban mixed-use places. WestBend was an office building with 6,000 square feet of retail. We are redeveloping it so that the office is expanded and we will have 180,000 square feet of office and almost 100,000 square feet of retail. We’re accommodating most of the expansion by replacing a large surface parking lot with an 800-space garage. Simon now owns the successful University Park Village directly across the street, and our retail will essen­tially be the new, fresh extension of that center. Together, these properties will have about 275,000 square feet of retail, which equates to the small shop space in a mall. This will be a market dominant lifestyle retail district. Our project is an­chored by The Fresh Market, which will open this spring. In Napa, we are taking a distressed project within the city-street grid and adding a four-star hotel on top of tremendous lifestyle amenities. The design includes significant public space. The Napa Valley area has no meaningful concentration of retail. At Victory Park, we are re-envisioning the retail and streetscape. That development was really never finished. We are redeveloping, re­ merchandising and evolving the project substantially. The before and after here will be as dramatic as anything I have ever seen in my life.

SCB: You are involved with the rede­velopment of Saddle Creek in Memphis, which is widely known as the first lifestyle center in the country. What are your plans for that center?

Montesi: An institutional owner has asked us to evolve the center and rede­velop it. I grew up about three miles from Saddle Creek, so I know the market well. It is in Germantown, Tennessee, a sub­urb of Memphis. The center is 142,000 square feet today; when we finish, it will be closer to 170,000 square feet. We have demolished sections of the center and are building a large new addition. We are completely reconfiguring the parking to improve the center’s convenience, vis­ibility and signage. We are also going to improve storefront heights so that the new Saddle Creek will feel dramatically differ­ent. The changes will enhance its ability to dominate the market for upscale and  specialty retail. It already has a great start; Saddle Creek has the only Apple store in the market, as well as the only Anthro­pologie, Banana Republic, Michael Kors, Kate Spade and Brooks Brothers.

SCB: You are developing Waterside along the Trinity River in Fort Worth. You have an interesting approach to that project. Tell us about it.

Montesi: Waterside is a 63-acre parcel in Fort Worth. At the heart of it will be a Whole Foods Market-anchored hybrid community and lifestyle center. There will be a l-acre public space called ‘The Grove’ at the center of the project on which we are investing almost $2 million. Transwestern will develop apartments di­rectly on The Grove, and we will have three to four restaurants as well. Water­ side will be our first ‘Conscious Place.’ We are involved in Conscious Capital­ ism, a non-profit corporation started by John Mackey, founder of Whole Foods Market, and Kip Tindall, founder of The Container Store. The goals of the orga­nization are to espouse the benefits of capitalism and the stakeholder model, as opposed to the reputation of capitalists as greedy, terrible people. There are a lot of capitalists who are changing the world for the better. With this inspiration, we de­veloped the idea of the ‘Conscious Place.’ Most of the retail places in the country are not very conscious. They are full of pavement and sidewalks; all the activity is in generic buildings. We partnered with Whole Foods Market to create the first ‘Conscious Place’ at Waterside. What does that mean? We are going to have some of our parking shaded by solar pan­ els. We will have an outdoor community room that will have room for 60 patrons in a shaded area with heaters and fans in which we will have a large video screen we call our Inspiration Station. It will have inspirational quotes and images, it may also host the Texas vs. Oklahoma game on a Saturday afternoon, and inspirational videos. All that helps bring people togeth­er. There will be solar powered charging stations for handheld electronic devices. There will be inspirational quotes, play areas for kids and adults, and public art, as well as works by local artisans. We want to have a place of commerce, community, meaning and purpose. We want people to feel that we are enhancing their lives.

SCB: You are working on a number of projects that seem to have gotten to a point with other developers and then weren’t pushed to the next level. Where do you feel Trademark can take those projects?

Montesi: We approach development and investment from a long term per­spective. A lot of developers just don’t have that in their thinking. When they de­sign projects, they are often in a hurry to build and sell, or they are trying to please civic organizations. We start most developments by listening to the community. We hold focus groups and community meetings. At Waterside, we’ve had 14 or 15 community engagement sessions, from 20 people to 150 people, asking for ideas. Even when we take over other projects, we go back to the communities; and we visit with the retailers. We are extremely collaborative. We approach our business as an innovator; we are not afraid to try new things. We think it is all about the experience. It is all about what a place can offer people that the Internet cannot. We try to listen to our customers and anticipate their needs. We are commit­ted to evolving the experience that can be had at a shopping center. It can be a difficult decision whether or not to demo a building because it just doesn’t fit with the project, or to spend money on public art or shade structures. A conventional mindset would have you thinking, ‘what is my return going to be?’ You won’t neces­sarily be able to show a return on these types of investments. A tenant isn’t going to pay you 25 cents more per square foot in rent because you have spent this money. The numbers will return in the sales, loyalty and emotional connection. At La Palmera, we have invested in that community and the community has re­sponded in a big way. Part of that was getting the community aligned with us.

Market Street Flowood Welcomes Amerigo Italian Restaurant

Media Contact:
Sydney Townsend, stownsend@sunwestpr.com, 214.373.1601
Upscale Italian eatery to open this fall

FLOWOOD, Miss. (March 17, 2015) – Market Street Flowood, LLP, owners of Market Street Flowood, announced that Amerigo Italian Restaurant, will open a 6,000-square-foot location at the 373,000-square-foot shopping center.

CBRE | Jackson represented the owner in the transaction and participates the leasing efforts for the office and retail in conjunction with Trademark Property Co out of Ft. Worth, TX while Austin Benedict with Colliers International out of Nashville, TN represented Amerigo. “We’re excited to offer our guests an added dining option that will be a local favorite,” said Trademark Senior Vice President of Community & Power Center Leasing, Fremon Baker. “We are always looking to continue to enhance our mix of restaurants and retailers, and Amerigo is a great fit for Market Street Flowood.”

Slated to open this fall, Amerigo first opened its doors in Jackson in 1987.  Today it is an upscale, family-friendly, neighborhood Italian restaurant serving a blend of traditional and modern cuisine. In addition to classics like Bruschetta, Shrimp Scampi and Chicken Parmesan, Amerigo also offers signature steak and seafood dishes, along with craft drinks and an award-winning wine list. Lunch, dinner, Sunday brunch and gluten-free menus are available. Amerigo can provide to-go orders, private dining and family-style catering services for groups of any size.

“We believe that the City of Flowood and Rankin County will be a great fit for our team, and are thrilled to be joining Market Street Flowood as its Italian restaurant” said the local owner of Amerigo, David Conn.

“Amerigo has a long history of serving fantastic Italian cuisine, and we are very pleased to have them coming to our great City” said the honorable Mayor Gary Rhoads.

Amerigo will be located next to Indianola Pecan House and directly across from Cozy Outfitters. The Italian restaurant joins other Market Street Flowood dining options including Outback Steakhouse, Corner Bakery, Cheddar’s, Five Guys Burgers, Gigi’s Cupcakes, Which Wich and Genghis Grill.

Located at the southwest corner of E. Metro Pkwy and Lakeland Drive, Market Street Flowood is a 373,000-square-foot lifestyle shopping center serving the greater Jackson, Mississippi area. Market Street Flowood features more than 30 national and local retailers and restaurants, as well as Class A office space and public green space.

Trademark leading DFW’s high-profile projects

Originally published March 4, 2015 on GlobeSt.com 
By: Anna Caplan

FORT WORTH—Pardon Trademark Property Co. if it hardly has a chance to stop and take a breath.

The Fort Worth-based retail and mixed-use developer has a big stake in a number of high-profile projects: Waterside and WestBend in Fort Worth, The Shops at Highland Village and the redesign of Victory Park near downtown Dallas.TrademarkPropertyCo_VictoryParkMarketingServices_Still_View_01(small)

“This is the busiest, most active, we’ve ever been,” Terry Montesi, Trademark’s CEO, told GlobeSt.com.

Since the early ‘90s, the niche firm has made a name for itself developing notable retail havens. In 1992, it redesigned the Preston Oaks shopping center in Dallas. Later that year, it bought (and then sold in 1995) Fort Worth’s popular shopping mecca University Village. Other notable work hasn’t limited the company to DFW. Past projects are far-flung, from Jackson, Miss. to Traverse City, Mich.

Lately, however, the firm has a good problem—juggling and lining up an exciting mix of tenants at the Dallas/Fort Worth developments.

“We’re curating a diverse group of tenants,” Montesi says about Victory Park.

The massive redevelopment is certain to change the face of the American Airlines Center-adjacent neighborhood, bringing a 24-hour restaurant (it just signed BuzzBrews), a CrossFit studio, a stationery boutique, a floral design studio and a sandwich shop to the area.

Montesi says 60,000 square feet of space is currently under negotiations; all said, Victory Park will have 220,000 square feet of street-level retail. A grocery component could be in the offing but Montesi would not confirm any other possible tenants at this time.

In Highland Village, Trademark announced this week a multi-million dollar renovation of the 352,000-square-foot Shops at Highland Village center that will include enhanced common area improvements, upgraded landscaping, new amenities for adults and children, updated facades and new signage throughout the property.

And over in Fort Worth, Waterside, the $75-million Whole Foods Market-anchored mixed-use development has announced Birmingham, Ala.-based Zoe’s Kitchen as its first restaurant tenant. And WestBend, situated between TCU and Interstate 30 along University Drive, will welcome the city’s first Fresh Market, Grimaldi’s pizza and a host of other tenants.

Montesi also confirmed that he is working with the city of Fort Worth to create an “enhanced crosswalk” or some other type of right-of-way for pedestrians to cross University Drive and get to and from WestBend and University Village.

Click HERE for full article

Victory Park unveils first wave of restaurants & retail

Originally published in the Dallas Business Journal on March 2, 2015

Candace_Carlisle_DBJFort Worth-based developer Trademark Property Co. — which is overseeing the $100 million redevelopment of Victory Park— has signed its first wave of restaurants and retailers into the evolving neighborhood.

The new leases total more than 10,500 square feet of retail, restaurant and neighborhood services, which will help support the residents of Victory Park.

“With the sheer volume of activity and development in Victory Park right now, the leasing interest is contagious,” CEO Terry Montesi said in a prepared statement. “These deals are just the beginning. We’re in current negotiations with a number of tenants, and we’re excited to continue announcing new retail additions throughout the coming months.”

Victory Park’s new tenants include:

  • A new 24/7 Buzzbrews for 4,612 square feet of restaurant space, which is scheduled to open in fall 2015.
  • Jimmy John’s has leased 1,767 square feet of space for a new restaurant, scheduled to open in spring 2015 at 2416 Victory Park Lane.
  • A Victory Park CrossFit expects to open in 2,523-square-foot space at 2312 Victory Park Lane in spring 2015.
  • A stationary and greeting card store, called Read Between the Lines, has opened its new 1,164-square-foot shop at 2412 Victory Park Lane.
  • A floral design shop, called Simply Elegant, has opened a small 474-square-foot shop at 2424 Victory Park Lane.

Victory Park is owned by a German-based real estate investment fund, UST XVI Victory Park, and managed by affiliates of Estein & Associates USA Ltd. The neighborhood has more than 165,000 square feet of retail, restaurant and entertainment space in the 75-acre mixed-use development surrounding the American Airlines Center.

Click HERE for Original Story

Uptown Village to undergo multi-million dollar renovation

Original story published by Focus Daily News
Feb. 27, 2015

{Cedar Hill, TX} – Trademark Property Co., the operating partner for Uptown Village at Cedar Hill, has announced a multi-million dollar renovation of the 610,000 square foot shopping center that includes a re-brand, enhanced entrances, upgraded landscaping, common area improvements, a new children’s play area, new amenities for adults and children, and new signage throughout the property. In addition, Trademark is working with several prospective junior anchors to add to the merchandising mix.

“We invested in Uptown Village at Cedar Hill six months ago because we saw the enormous potential in the shopping center. We made a commitment to the great community of Cedar Hill to evolve their beloved shopping center into something even better, keeping our core customers happy, while attracting new shoppers and tenants to Cedar Hill,” said Terry Montesi, CEO of Trademark. “We have substantial experience evolving shopping environments to exceed shopper’s expectations. That’s what we plan to do with Uptown Village at Cedar Hill.”

After acquiring a minority interest in Uptown Village at Cedar Hill in the summer of 2014, Trademark conducted extensive research with Alexander Babbage, one of the top research firms in the U.S., to gather key information about the center’s shoppers including demographics, trade area and most importantly, what customers wanted at the property including stores, amenities, safety and more. Following the research and information gathering, Trademark conducted a design charrette last fall at Uptown Village at Cedar Hill with numerous architects, place makers, the City of Cedar Hill and the onsite management team to collaborate and formulate a strategic plan and direction for the property. Trademark has created a plan to evolve the property and give the community a best-in-class shop, dine and play experience.

“We are currently in negotiations with several new tenants – a mix of local and national retailers – totaling more than 35,000 square feet. They are all very excited about our planned improvements to the shopping center. In fact, the renovations are driving significant interest for potential tenants,” said Maranda Auzenne, general manager, Uptown Village at Cedar Hill. “Thanks to Trademark, we’re being re-energized and will be stronger and better than ever.”

Uptown Village at Cedar Hill currently includes 350,000 square feet of specialty stores and restaurants, as well as 31,000 square feet of office space. The popular center has more than 65 tenants including Charming Charlie, Chico’s, Hollister, James Avery, Old Navy, Papaya, The Children’s Place and Victoria’s Secret. The anchor retailers are Barnes & Noble, Dillard’s and Dick’s Sporting Goods.

To learn more about the improvements as they are announced, please visit Uptown Village at Cedar Hill’s website, or follow the shopping center on Facebook, Twitter and Instagram.

Click HERE for full article

Victory Park Adds Five New Retail Tenants

DALLAS – (March 2, 2015) – Trademark Property Co. today announced five new restaurant and retail additions to Victory Park, the first wave of retail announcements in the district’s redevelopment. The new tenants bring more than 10,500 square feet of added retail, restaurant and service-related businesses to the district.

“With the sheer volume of activity and development in Victory Park right now, the leasing interest is contagious,” said Terry Montesi, CEO of Trademark. “Our focus is on crafting the right mix of retail, which is seen in the diversity of these new tenants and the needs they meet within the neighborhood. These deals are just the beginning. We’re in current negotiations with a number of tenants, and we’re excited to continue announcing new retail additions throughout the coming months.”

The following tenants are coming soon to Victory Park:

  • BuzzBrews features an extensive 24-hour menu perfect for breakfast lovers, late-night cravings, and professionals on the go. The 4,612-square-foot restaurant will open their fourth Dallas location in the fall of 2015.
  • Jimmy John’s gourmet sandwiches are made from fresh, natural ingredients and are available for dine-in, delivery and catering. The 1,767-square-foot restaurant is slated to open in spring 2015 at 2416 Victory Park Lane.
  • Victory Park CrossFit is a fitness community that challenges, inspires and supports members to get in the best physical shape possible. The 2,523-square-foot space is scheduled to open in spring 2015 at 2312 Victory Park Lane.

The following tenants recently opened at Victory Park:

  • Read Between the Lines is a stationary store that specializes in art prints, greeting cards, and wine and spirit bags. The 1,164-square-foot retail space is now open at 2412 Victory Park Lane.
  • Simply Elegant is a full-service floral design store with services that range from same-day delivery of personalized arrangements to special events management. The 474-square-foot space is now open at 2424 Victory Park Lane.

In addition to these new tenants, Victory Park features more than 165,000 square feet of retail, restaurant and entertainment space, including: Chad Rookstool Salon, Cook Hall, Crossroads, Hard Rock Café, The Hanger, Havana Social Club, House of Blues, Kenichi, Medina Oven & Bar, Metro Tickets, Naga Thai Kitchen & Bar, Olivella’s Neo Pizza Napoletana, The Office of Angela Scott, Shooters and Victory Tavern. The Perot Museum of Nature & Science also is located within Victory Park. In addition, the district includes 621,000 square feet of Class-A office space; the 252-room W Dallas – Victory Hotel; and more than 1,700 residential units.

Victory Park is a property of UST XVI Victory Park, a German real estate investment fund managed by affiliates of Estein & Associates USA, Ltd. based in Orlando, Florida.  UST XVI became an equity owner of Victory Park in 2005 and the sole owner of the Victory Park buildings in 2009. The 75-acre mixed-use development surrounds American Airlines Center, home of the Dallas Mavericks and Dallas Stars, and is located in downtown Dallas at the intersection of Interstate 35, the Dallas North Tollway and Woodall Rodgers Freeway.  Victory Station provides access to DART Light Rail and the Trinity Railway Express.  The popular 3.5-mile jogging and bicycle path, The Katy Trail, is also directly accessible.

For more information about Victory Park visit victorypark.com.