gc
22 May 2003, 10:58 AM
Though it has not been officially announced, Haggar will be moving to Two i2 Place. I was told that Haggar closed on the property last Friday. To me, it is very dissappointing to see another longtime Dallas firm moving further from the CBD. I am glad, however, that they will still be within the city limits.
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Haggar said to eye i2 building for move from Lemmon Ave.
Christine Perez - Staff Writer Dallas Business Journal
UPTOWN -- The Haggar Corp.'s search for a new headquarters has led it to Farmers Branch, where sources say the apparel manufacturer is planning to buy Two i2 Place, a six-story office tower on Luna Road just south of LBJ Freeway.
Built in 2000, the 180,000-square-foot building is the second office tower built at Colinas Crossing, a 75-acre mixed-use campus owned by Dallas-based developer Means-Knaus L.L.C. and Portland, Ore.-based Pacific Realty Associates L.P., or PacTrust.
i2 Technologies Inc. had occupied the facility until recently, when it consolidated operations into its headquarters at One i2 Place, which is identical to and sits just north of the building Haggar is looking to buy.
Representatives at PacTrust said the i2 signs atop Two i2 Place will come down May 16, when i2's lease on the building officially terminates. i2 currently has about 800 Metroplex employees, most of whom work in One i2 Place.
Haggar Corp. employs about 500 at its current headquarters at 6113 Lemmon Ave., according to the North Central Texas Council of Governments. The two-story, 230,800-square-foot facility was built in 1960 and has a taxable value of about $5.8 million, according to the Dallas Central Appraisal District.
Officials at Haggar did not return calls seeking comment. The Staubach Co.'s Paul Whitman confirmed that he is representing Haggar in its search for space, but referred all other questions to his client. Steve Means, a partner at Means-Knaus, declined to comment.
According to real estate sources, Haggar is in talks to sell its Lemmon Avenue building and accompanying 10 acres of land to Ken Schnitzer, the chairman of Park Place Motorcars. Schnitzer would move his Mercedes, Rolls-Royce, Bentley and Porsche dealerships to the site from his current property on Oak Lawn Avenue, which he plans to sell to the Park Cities Presbyterian Church.
A move to Lemmon Avenue would put Schnitzer next to Carl Sewell's Lexus dealership and within about a mile of 16 other automobile brands sold through five dealers.
Haggar reportedly plans then to buy Two i2 Place through a so-called "1031 exchange." The 1031 section of the federal tax code allows sellers to defer capital gains on property sales if the proceeds are reinvested into other properties.
The code was developed in the 1920s but has been growing in popularity lately as investors turn away from the stock market and toward real estate, said Rhonda Toming, senior vice president at Fischer Financial in Dallas.
"Until the last few years, many property owners were not familiar with the exchange process and how it can significantly improve their financial position," she said. "We're definitely seeing more corporations do them now than had in the past."
To qualify, a seller must turn over the proceeds from the initial sale to a qualified intermediary, usually a title company. To avoid a taxable gain, all of the funds must go toward the purchase of real estate that has an equal or greater value.
Toming said owners of empty buildings usually prefer to sell them to users.
"Users can sometimes pay more for an empty building over an investor who typically would have to wait for leasing to occur before achieving a return on their investment," she said.
Asked about incentives
Before zeroing in on Two i2 Place, Haggar also looked at buying Canal Plaza and Waterway Tower at 400 and 433 Las Colinas Boulevard in Irving. Owned by Boston-based Fidelity Investments, the two buildings recently went on the market, said company spokesman John Brockelman.
"We had received inquiries from brokers asking whether we would be interested in selling the buildings, so we've engaged CB Richard Ellis to market them," he said.
Built in the early 1980s, the buildings total 457,000 square feet and are partially leased to other tenants. According to sources close to the deal, Haggar could pay less for the Fidelity package but would be burdened by excess real estate. Two i2 Place is only three years old, and the buy would include equipment and furniture that i2 Technologies no longer needs.
Haggar Corp. has contacted Farmers Branch about potential incentives, said Norma Nichols, the city's director of economic development.
"Through its broker at The Staubach Co., the company has inquired about our policies and asked us what we would consider," she said. "However, they've not asked for a formal proposal or made an application yet."
Haggar Clothing Co. was founded by J.M. Haggar Sr., a Lebanese immigrant, in 1926. The company went public as Haggar Corp. (NYSE: HGGR) in 1992. It's now run by the founder's grandson, Joe Haggar III, chairman and CEO, and Frank Bracken, president and COO.
Haggar touts itself as the country's No. 1 marketer of men's dress pants, suits and sports coats, with close to $500 million in annual sales. Its three primary customers are J.C. Penney Co., Kohl's Corp. and Wal-Mart Stores Inc. The company also owns 68 Haggar outlet stores.
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Haggar said to eye i2 building for move from Lemmon Ave.
Christine Perez - Staff Writer Dallas Business Journal
UPTOWN -- The Haggar Corp.'s search for a new headquarters has led it to Farmers Branch, where sources say the apparel manufacturer is planning to buy Two i2 Place, a six-story office tower on Luna Road just south of LBJ Freeway.
Built in 2000, the 180,000-square-foot building is the second office tower built at Colinas Crossing, a 75-acre mixed-use campus owned by Dallas-based developer Means-Knaus L.L.C. and Portland, Ore.-based Pacific Realty Associates L.P., or PacTrust.
i2 Technologies Inc. had occupied the facility until recently, when it consolidated operations into its headquarters at One i2 Place, which is identical to and sits just north of the building Haggar is looking to buy.
Representatives at PacTrust said the i2 signs atop Two i2 Place will come down May 16, when i2's lease on the building officially terminates. i2 currently has about 800 Metroplex employees, most of whom work in One i2 Place.
Haggar Corp. employs about 500 at its current headquarters at 6113 Lemmon Ave., according to the North Central Texas Council of Governments. The two-story, 230,800-square-foot facility was built in 1960 and has a taxable value of about $5.8 million, according to the Dallas Central Appraisal District.
Officials at Haggar did not return calls seeking comment. The Staubach Co.'s Paul Whitman confirmed that he is representing Haggar in its search for space, but referred all other questions to his client. Steve Means, a partner at Means-Knaus, declined to comment.
According to real estate sources, Haggar is in talks to sell its Lemmon Avenue building and accompanying 10 acres of land to Ken Schnitzer, the chairman of Park Place Motorcars. Schnitzer would move his Mercedes, Rolls-Royce, Bentley and Porsche dealerships to the site from his current property on Oak Lawn Avenue, which he plans to sell to the Park Cities Presbyterian Church.
A move to Lemmon Avenue would put Schnitzer next to Carl Sewell's Lexus dealership and within about a mile of 16 other automobile brands sold through five dealers.
Haggar reportedly plans then to buy Two i2 Place through a so-called "1031 exchange." The 1031 section of the federal tax code allows sellers to defer capital gains on property sales if the proceeds are reinvested into other properties.
The code was developed in the 1920s but has been growing in popularity lately as investors turn away from the stock market and toward real estate, said Rhonda Toming, senior vice president at Fischer Financial in Dallas.
"Until the last few years, many property owners were not familiar with the exchange process and how it can significantly improve their financial position," she said. "We're definitely seeing more corporations do them now than had in the past."
To qualify, a seller must turn over the proceeds from the initial sale to a qualified intermediary, usually a title company. To avoid a taxable gain, all of the funds must go toward the purchase of real estate that has an equal or greater value.
Toming said owners of empty buildings usually prefer to sell them to users.
"Users can sometimes pay more for an empty building over an investor who typically would have to wait for leasing to occur before achieving a return on their investment," she said.
Asked about incentives
Before zeroing in on Two i2 Place, Haggar also looked at buying Canal Plaza and Waterway Tower at 400 and 433 Las Colinas Boulevard in Irving. Owned by Boston-based Fidelity Investments, the two buildings recently went on the market, said company spokesman John Brockelman.
"We had received inquiries from brokers asking whether we would be interested in selling the buildings, so we've engaged CB Richard Ellis to market them," he said.
Built in the early 1980s, the buildings total 457,000 square feet and are partially leased to other tenants. According to sources close to the deal, Haggar could pay less for the Fidelity package but would be burdened by excess real estate. Two i2 Place is only three years old, and the buy would include equipment and furniture that i2 Technologies no longer needs.
Haggar Corp. has contacted Farmers Branch about potential incentives, said Norma Nichols, the city's director of economic development.
"Through its broker at The Staubach Co., the company has inquired about our policies and asked us what we would consider," she said. "However, they've not asked for a formal proposal or made an application yet."
Haggar Clothing Co. was founded by J.M. Haggar Sr., a Lebanese immigrant, in 1926. The company went public as Haggar Corp. (NYSE: HGGR) in 1992. It's now run by the founder's grandson, Joe Haggar III, chairman and CEO, and Frank Bracken, president and COO.
Haggar touts itself as the country's No. 1 marketer of men's dress pants, suits and sports coats, with close to $500 million in annual sales. Its three primary customers are J.C. Penney Co., Kohl's Corp. and Wal-Mart Stores Inc. The company also owns 68 Haggar outlet stores.