North Dallas: 12222 Merit Drive

[X Factor]

Zaya S. Younan, chairman and CEO, has had Dallas brokerage circles talking for months about his quest to become the largest office building owner in the metro. Today, he climbs one more notch by buying the 394,324-sf Four Forest Plaza at 12222 Merit Dr. and 397,328-sf Lakeside Square at 12377 Merit Dr. The deal factors out to close to $60 million just for the office space.



Not only is Younan getting two 80%-leased high rises, but he also scooped up open land beside Lakeside Square so he can build "one of the largest [residential and retail] high-rise projects in Dallas," he tells GlobeSt.com. He says work will start immediately to get the land rezoned so he can build "a chic, modern high rise" of condos and apartments with a retail infrastructure. Beyond that, the rest of the details won't be available for awhile.

. "We are looking aggressively to buy more," he says. "We like Dallas. We've always liked Dallas. We love Dallas and we are very strong on the equity side."

Who is this guy, and are his plans credible?

If he wants to go with this what are the odds of him moving the project to DT/Uptown?
<div style='position: relative; width: 700px; overflow: hidden;'><img src='http://img149.imageshack.us/img149/364/amerit1tp.jpg'></div>

[Insidetheloop]

Who is this guy, and are his plans credible?

If he wants to go with this what are the odds of him moving the project to DT/Uptown?
]

It's a Park Central project. The apartments built along Churchill Way have been very popular up there and I would bet that a new hybrid residential/retail/office type development would go over well.

I wish that Starfest, the Park Central open air concert ampitheatre was still there. They used to have concerts and shoot off fireworks there.

[gc]

I can certainly see that area as a good candidate for more some more dense urban developments.

[tamtagon]

^Ya, now that the highway intersection is done, there's prolly going to be quite a few residential highrises pop up in that area.

[X Factor]

Rephrase... Another group of highrises.. kinda like in Atlanta. Theres Downtown and then down Peachtree St. theres another cluster of highrises, I dont know what the area is called.

[Tnekster]

^Second?

[antoinekhuu]

Based on the article, that guy has an impressive record.


(BW) Younan Properties Achieves 100% IRR in $27.5 Million Sale of Stemmons Office Portfolio in Dallas, Texas
By Business Editors
(c) 2005 Business Wire
DALLAS--(BUSINESS WIRE)--Oct. 13, 2005--In a Submarket Plagued with 35% Vacancy, Woodland Hills, CA-Based Firm Achieves up to 100% IRR in Disposition of Three Class B Office Properties Totaling 600,000 Square Feet



In an office market that is among the most challenging in the United States, Woodland Hills, California-based Younan Properties, Inc. (YPI), one of the fastest-growing, privately held real estate investment groups in the country, has delivered an IRR as high as 100% with the $27.5 million disposition of its Stemmons Freeway Corridor portfolio, containing three Class B office buildings totaling 600,000 square feet in Dallas, Texas.



Scot Farber and partner Darrell Betts, senior vice presidents of Dallas- and Houston-based Grubb & Ellis, represented both Younan Properties and the two buyers of the portfolio in the heart of Dallas' Stemmons Freeway Corridor -- The Khoshbin Properties of Irvine, California and Professors Capital, with offices in Solano Beach, California and Washington D.C.

"Younan Properties' expertise in turning around properties for outstanding profitability in one of the country's toughest markets was very apparent in these complex transactions," Farber observed. "Younan was able to increase overall occupancy and reduce operating costs while boosting building standards with significant capital improvements in the three structures."

"We entered the challenging Stemmons submarket two years ago, in the middle of a recession, fully aware of the difficulties associated with stabilizing and improving assets in an office market that has been plagued with vacancy rates of 35% and higher," commented Zaya S. Younan, chairman and CEO of Younan Properties, Inc. "Although the Stemmons market declined over the course of our ownership, we achieved almost unheard-of returns for our investors by enhancing the properties through renovations, increased occupancies and improved operational efficiencies." Younan noted that his firm reduced operating costs by at least 30% in all three buildings, while maintaining top standards for tenants.

By executing its plan to dispose of the Class B Stemmons Freeway Corridor buildings from its portfolio, Younan Properties has strengthened its position to acquire additional Class A assets in key Dallas submarkets for solid, long-term investments. Most recently, YPI acquired a 1.1 million-square-foot office portfolio in Dallas from Equity Properties Trust (NYSE: EOP), making the firm the third largest office owner in Dallas, with a portfolio of 2.3 million square feet of Class A office space.

The Stemmons Portfolio properties included in the sale are:

-- Brookriver Executive Center, a 312,000-square-foot office building located at 8200 Brookriver Drive. The seven-story property is 28% leased with tenants that include Castlemark Consulting, Inc., ATI Capital Group, Inc. and Republic American Life Insurance Company. Over just 11 months of holding, YPI delivered a 100% return to investors by reducing operating expenses from $3 million to $1.2 million -- a cut of more than 50%, despite a 2% drop in occupancy.

-- One Brookriver Place, a seven-story mid-rise located at 7929 Brookriver Drive in Dallas. The 155,000-square-foot office property is 70% leased with tenants that include Concorde Acceptance Corporation, The Greensheet Newpapers and Mapp Construction. Over 18 months of ownership, YPI delivered a 22% return to investors by reducing operating costs by 30%, while maintaining top standards for tenants. Occupancy increased from 48% to 70% over the course of YPI's ownership.

-- Mockingbird Tower, a 125,000-square-foot office building located at 1250 West Mockingbird Lane in Dallas. The seven-story property is 88% leased with tenants that include Parkland Hospital, Sterling Bank and Career Education Corp. Over 18 months of ownership, YPI delivered a 22% return to investors. Once again, Younan Properties reduced operating costs by 30%, while maintaining top standards for tenants. Occupancy increased from 40% to 88% over the course of YPI's ownership.

The management team at Younan Properties has more than 40 years of experience in developing and managing commercial real estate in Dallas. Headed by Zaya S. Younan, Younan Properties has accumulated $500 million in real estate holdings since its inception in 2002. The company's national portfolio currently includes 20 Class A office properties totaling four million square feet.

About Younan Properties, Inc.

Headquartered in Woodland Hills, Calif., Younan Properties, Inc., a real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. The company is especially adept at turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan Properties creates immediate value. In fact, the company has delivered to its investors an average leveraged IRR of 65 percent on properties sold to date.

Since founding the company in 2002, Younan has accumulated a portfolio of well-located Class A office buildings valued at $500 million in key markets within Arizona, California, Florida, Illinois and Texas. For more information, visit www.younanproperties.com (http://www.younanproperties.com/).

[texman]

^Ya, now that the highway intersection is done, there's prolly going to be quite a few residential highrises pop up in that area.
I always knew a highrise condo tower would do well in that area. Plus a creek and DART rail, wow, this is prime real estate.

[drumguy8800]

Creek? That's like calling the Trinity a river.

The park next to it is nice. And I believe it has a 'trail' or something.. down to White Rock maybe. They were supposed to spruce it up, I believe.. and make it all un-drainage-ditchy.

That got far.

Really, there's only a small segment that's a drainage ditch..

and it goes through a golf course north of LBJ and then down from Forest/Central..

And this, dammed, is White Rock. Okay, maybe it is a good thing. They just need to improve it.

[Insidetheloop]

I always knew a highrise condo tower would do well in that area. Plus a creek and DART rail, wow, this is prime real estate.

If you are familiar with the area though, you would see that the area is already developed. The footprint for the land discussed here is not very big and is hemmed in by existing buildings. Most of the land surrounding this area is owned by a Texas Instruments retirement trust and they lease back the buildings. There are no plans to change any of that.

The DART rail station is over a mile away and would be impossible to walk to. Getting to the DART rail station would require a bus ride first.

I like the pond at Park Central. If you ever see David Johnson give his stock market updates on Channel 8, you can see the nice view of the pond out his window.

[Insidetheloop]

Creek? That's like calling the Trinity a river.



The park next to it is nice. And I believe it has a 'trail' or something.. down to White Rock maybe. They were supposed to spruce it up, I believe.. and make it all un-drainage-ditchy.



That got far.



Really, there's only a small segment that's a drainage ditch..



and it goes through a golf course north of LBJ and then down from Forest/Central..



And this, dammed, is White Rock. Okay, maybe it is a good thing. They just need to improve it.



Are you talking about the pond and the outlet creek that drains the pond or White Rock Creek? Because you can canoe down White Rock. It's a real creek and could almost be considered a river(ahem) by Texas standards. The hike and bike path starts at the corner of Hillcrest and Valley View and goes all the way down and around White Rock Lake. 23 miles roundtrip(7 miles down, 9 miles around the lake and 7 miles back).

[tamtagon]

The hike and bike path starts at the corner of Hillcrest and Valley View and goes all the way down and around White Rock Lake. 23 miles roundtrip(7 miles down, 9 miles around the lake and 7 miles back).

That could be a great bike ride.

[psukhu]

I've rode from Hillcrest/635 to White Rock Lake several times. It is like another Katy Trail, except you have a creek next to you for part of the way. The concrete path is wide and it goes under major streets like Central and Walnut Hill. It also goes under an LRT bridge. There's a part where you feel like you are in total wilderness.

Everybody who owns a bike should check it out. Like the Katy Trail, it slopes downward, making it an easy ride.

[Tnekster]

That could be a great bike ride.

It is, used to do it all the time. You ride along the creek and through the woods the whole time, also riding under major roads. It really is a great park all the way from Park Central to White Rock.

[JasonDallas]

It is, used to do it all the time. You ride along the creek and through the woods the whole time, also riding under major roads. It really is a great park all the way from Park Central to White Rock.

What has always been missing with White Rock Creek Trail is a way to go further. According to the March 2005 Dallas "Trail Network Master Plan" map, they want to connect it to the Plano trails via the new trail under High 5. That connection will be very nice if it ever gets finished.

Jason

[Tnekster]

What has always been missing with White Rock Creek Trail is a way to go further. According to the March 2005 Dallas "Trail Network Master Plan" map, they want to connect it to the Plano trails via the new trail under High 5. That connection will be very nice if it ever gets finished.

Jason

Wish they would take it south too, go south of Garland Road and connect up with the Trinity forest.

[Insidetheloop]

What has always been missing with White Rock Creek Trail is a way to go further. According to the March 2005 Dallas "Trail Network Master Plan" map, they want to connect it to the Plano trails via the new trail under High 5. That connection will be very nice if it ever gets finished.



Jason



You can ride all the way from White Rock Lake to Prestonwood Mall on the trail. There are a few sections like behind the Greek church on Hillcrest where the trail is unimproved, but it rejoins the paved hike/bike path north of Spring Valley. It's confusing, so I did not mention it above.



I mentioned in another post a few months ago that it's an easy 10 minute bike ride from the Katy Trail to White Rock Lake and it only takes about 30 minutes(if you are in decent shape) to ride from the White Rock Lake dam(TP Hill) to LBJ. It's literally faster than driving a car most of the time.



On the south side of White Rock Lake just south of the spillway at Garland Road and Winstead, on the east side of the road, there is an abandoned rail line that has it's tracks removed. On a mountain bike you can ride the old rail bed down White Rock Creek to Fair Park or you can follow a network of smaller double track dirt roads near the Tennison Golf Course and follow White Rock Creek to the Trinity River.



I believe that the trail south from White Rock Lake along the old rail line will be completed in the next few years.



Currently they are building a very nice and very expensive foot bridge across the lake just south of Mockingbird behind the dog park. This will make it much safer getting across the lake on the north end.

[texman]

Some good info. We need a 'Dallas Bike Trails' thread..

[freewaytincan]

I certainly hope that it matches the rest of the Park Central look.

[Mephis Gooseberry]

Any news on this?

[Urban Interest]

I've rode from Hillcrest/635 to White Rock Lake several times. It is like another Katy Trail, except you have a creek next to you for part of the way. The concrete path is wide and it goes under major streets like Central and Walnut Hill. It also goes under an LRT bridge. There's a part where you feel like you are in total wilderness.

Everybody who owns a bike should check it out. Like the Katy Trail, it slopes downward, making it an easy ride

Is the route pretty obvious? It sounds like a great bike ride, but I'm always afraid that I'll get confused about where I am (I'm a little directionally challenged.)