PegasusAblon Insights

December 23rd, 2015 by

HOUSTON, Texas (December 23, 2015)—Houston-based private equity firm Lionstone Investments and Dallas-based developer PegasusAblon announced that they have sold Dallas’ iconic Ross Tower on behalf of an institutional investor who has owned the property since 1999.


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October 21st, 2015 by

DALLAS, Texas –October 21, 2015– PegasusAblon announced today that it has arranged the purchase of the Foch Street Warehouses on behalf of the buyer, Lionstone Investments. Located at 921 and 1001 Foch Street in Fort Worth, the 136,297 square foot retail center is currently 90% leased.


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August 24th, 2015 by

DALLAS, Texas – August 24, 2015 – Lionstone Investments, the Houston-based national real estate investment firm, and Dallas-based real estate developer PegasusAblon announced today the sale of Preston Park. The 169,842-square foot retail center is located at the corner of West Park Boulevard and Preston Road in Plano, Texas, and is anchored by the upscale grocery concept Market Street, which mixes traditional supermarket supplies with specialty items, gourmet foods, and prepared cuisine.


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May 17th, 2015 by

At PegasusAblon we don’t shy away from expressing our position on what makes a development successful, especially as development is forced to increasingly concern itself with the wants and needs of the 21st century consumer.

Our EchoFlats multifamily concept is an excellent example. Designed to elucidate our understanding of what multifamily residents look for in an apartment development, the EchoFlats philosophy has informed our developments even as it continues to evolve to meet ever-changing tastes.

PegasusAblon Principal Mike Ablon recently sat down with Axiometrics’ Dave Sorter to discuss what differentiates today’s consumer from yesterday’s, and what a focus on the experience factor looks like in multifamily development.

Listen to the full podcast on axiometrics.com.

May 13th, 2015 by

We are in the midst of a massive societal shift, transitioning from the dominance of the Baby Boomers to that of Generation Connected and the experience and knowledge economies they bring in their wake. As we move away from a consumer-based economy, one of the most valuable commodities for a city is proving to be the ability to sustain a highly educated and creative workforce. Interestingly enough, this new workforce is knows their value and operates under the belief that the jobs will come to them. Accordingly, they live where they want to live, in a place that matches their lifestyle, and instead of chasing jobs, jobs come to them.

Progressive cities have figured out that you don’t get great companies to relocate by offering incentives (that was so 1990). Cities recruit great companies by transforming themselves into great places to live, giving new weight to the infrastructure discussions we have been having here in Dallas concerning the likes of Fair Park, the Trinity Corridor and I-345. These projects are proving to be much more than a referendum on transportation and its denizen’s perceived opposition to the tenets of New Urbanism; it is the debate surrounding these projects which will determine whether Dallas takes this opportunity to reconstruct itself as a desirable home for the members and businesses of this new economy.

As we have seen, cities have the ability to correct the unintended consequences of early infrastructure projects. San Francisco achieved this with the replacement of the Embarcadero Freeway, driving the revitalization of South of Market- now a magnet for Tech start-ups. Seattle, following the New Urbanism model of Portland and Milwaukee, replaced the 99 Viaduct with smaller surface streets and public parks focused on opening up its waterfront. The list is long: New York did the same with the High Line and Boston with the Big Dig.


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May 6th, 2015 by

Neighborhoods are one of the most important characteristics of a mature city after all, great cities are nothing more than a composite of neighborhoods and moments. Take, for example, New York City’s plethora of identifiable neighborhoods, Chelsea, Hell’s Kitchen, Spanish Harlem, the Lower East Side, the Upper West Side and Wall Street, just to name a few. In discussing Dallas, we frequently refer to ourselves as a “Great American City” and population predictors project Dallas (the MSA) will be the 4th largest city in the U.S. by mid-century. As we stand on the precipice of being one of the largest American cities, it should be a priority to also cement our status as a great American city.

The period of formative growth we are preparing to enter will more or less serve to define the face of our city for decades to come. When we look back at this period in Dallas’ history we will, I would posit, measure our civic success in terms of how successful, or not, we have been at creating a mature city fabric composed of numerous vibrant and self-sustaining neighborhoods.


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May 1st, 2015 by

Editorial Note: This is Part One of a Three-part series on Dallas.

In their formative years cities make strategic decisions, which over time determine the trajectory of future growth. Occasionally, as with Haussmann’s carving up of Paris for the great Boulevard project in the 1850’s, the disruption and residual damages are obvious from the beginning. In other instances, civic projects unveil their unintended consequences in a gradual escalation over time; the unforeseen effects occasionally taking on a weight equal to the problem which they were intended to alleviate.

It is frequently the case that how a city addresses these residual consequences, in large measure, defines both its character and its future. There is rarely a time when a city does not face more pressing needs, but we would do well to learn from history. While 50 and 100-year civic projects almost inevitably serve as catalysts, driving the city’s failure or successes, it is the boldness of a city’s counter-moves, intended to correct those early mistakes, that is one of the markers of a great city. Think, for example, of the Big Dig in Boston (1992), the Embarcadero Freeway in San Francisco (1989), or the High Line in New York (2008).


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April 27th, 2015 by

In case you missed them, D Magazine recently published our series of essays on what makes a great city great. Over the course of three posts, Mike Ablon details both the large and small moves a city makes as it grows, how they work together to create the archetype of a great city and how we, here in Dallas, can learn both from others, and ourselves, how to make our own city great.

In the first installment we examine the big, infrastructure decisions a city makes early in its existence, paying especial attention to the deleterious consequences of large, early moves, whose symptoms are often not revealed until decades after their completion, offering examples specific to Dallas alongside proposed solutions.

In part two we take a closer look at the more subtle, but equally important role of the city in the cultivation of a variety of distinct, vibrant neighborhoods and why these neighborhoods are central to a city’s success. And finally, in part three, we tie the two pieces of the puzzle together while reasserting their applications for Dallas itself.

You can of course read all of them on D Magazine’s Real Estate Daily, but over the next several days we’ll be posting the blogs in their entirety on PegasusAblon.com.

We hope you enjoy.

March 6th, 2015 by

The term “sharing economy” has been tossed around with increasing frequency over the past couple of years. The rise of AirBnB, Uber and innumerable similarly focused websites and companies which provide opportunities to share everything from your vacuum to your clothes, has prompted a surge in debate concerning if, or when, the sharing trend will end.

We posit the trend is not a trend at all, but a dramatic and important societal shift, signifying a major change in lifestyle and values brought on in equal parts by the technology of the Internet, and the financial and emotional consequences of the Great Recession.

With Uber’s market cap larger than FedEx and Delta, and Airbnb’s nearly half that of Hilton Worldwide, it is not vital at this point to decisively determine whether it is truly a shift, or simply a trend. Whatever it turns out to be, ignore it at your own risk.

But how does, or could, the sharing model apply to the highly regulated world of commercial real estate?

In a recent contribution to D Magazine’s D Real Estate Daily, Mike Ablon considers the sharing economy and how, perhaps, the commercial real estate industry could learn from its assumptions.

Read the full blog on DMagazine.com or download a PDF version here.

 

February 11th, 2015 by

The Challenge

Katy Trail Place is a three-story office building located in the heart of Uptown, Dallas’ premier retail and office submarket. The building is located adjacent to the Katy Trail, minutes from major highways and situated with convenient access to dozens of restaurants, shops and residential neighborhoods.

Although when ownership acquired the building in 2007 it was 85% leased, the property was set to experience significant turnover in subsequent years with 60% of the building’s rent roll expiring in 2010 and an additional 25% expiring in 2011, establishing a significant leasing challenge in the heart of 2010’s financial crisis.

The Strategy

PegasusAblon joined the asset team in 2010, just as the rent roll was beginning to expire and the financial crisis was in full swing. In order to lease the compounding vacancy in the first two years of ownership while mitigating the risk for future exposure, we launched a two-fold strategy which consisted of a series of highly visible building improvements and a rebranding plan which would focus the building’s marketing efforts on its unique and highly desirable location adjacent to the Katy Trail in the heart of Uptown. Repositioning efforts have included changing the building’s name from 3535 Travis to Katy Trail Place, developing a new website and installing new monument signs.

Building improvements have included a renovated parking garage and lobby, improved on-site food options with a self-service deli and vending room and the addition of locker rooms and showers in the building’s restroom to allow tenants to run/walk/bike to work on the Katy Trail.

The Results

Despite the financial crisis of 2010, PegasusAblon was able to minimize the results of past leasing missteps and within three years, gain enough leasing traction to not only re-sign key tenants (who were being aggressively courted by competitors) at market rates, but also stabilize building occupancy near 100% while adding value during a time of financial uncertainty when many nearby investments failed.

Download the full case study here and visit katytrailplace.com for more information on the building and available space.