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Profile Highland
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Profile Highland Doubles It Size
The Marcus & Millichap Company (TMMC), and its affiliate Highland Development Company, named industry veteran Gregory N. Hoxworth as Chief Executive Officer and President of Highland earlier this year to head up Highland’s western expansion. According to Hoxworth, “It is our goal to be a dominant player in retail development in the western states. We have assembled an incredible team and will leverage our many available resources at TMMC to accomplish this.” TMMC is the holding company that encompasses the full spectrum of real estate activities including real estate investment brokerage, financial services and residential, office, apartment and retail development. “Our unique partnership with TMMC provides us with an exceptional opportunity to fast-track the number of development projects by acquiring already entitled property as well as ground-up and redevelopment projects. We want to add over a million sq.ft. to our existing development pipeline in the next two years,” Hoxworth said. With more than 25 years of real estate development experience, Hoxworth is well respected for his ability to substantially increase a company’s portfolio. Prior to joining Highland, Hoxworth served as the President of Development and Acquisitions for Washington, DC-based Combined Properties. In this position, Hoxworth was responsible for 12 projects being initiated or closed in approximately 3 years. Prior to Combined Properties, Hoxworth was the Executive Director of Lewis Retail Centers and was responsible for the development of retail and commercial properties under the Lewis Operating Cos. through Lewis Retail Centers in Upland, CA. Hoxworth will capitalize on the many resources and capabilities offered through his executive team at TMMC, which includes expertise in legal, market research, capital markets and finance. He has also hired Michael J. Singelyn as Highland’s new Director of Development and David Rose as Site Acquisitions Director. Paul Caruso, Highland’s Vice President of Acquisitions, will continue to head up the company’s northern California office in San Mateo. Hoxworth and the company headquarters are housed in a new office in Pasadena, Calif. “We are thrilled to add Michael Singelyn and David Rose to our team. Their comprehensive development experience, combined with their long-standing relationships with municipal agencies, retailers and the brokerage community, is a tremendous asset to Highland. Paul Caruso, who has been with the company since its inception, has extensive knowledge of the western states and a strong track record in the closing of acquisitions. We are also in the process of hiring other executives to add further depth to our team and look forward to making the announcement soon,” said Hoxworth. ”This is a challenging retail marketplace. There are a lot of developers competing for a shrinking inventory of vacant land and ‘A’ locations. The convergence of high land costs and increased construction costs has created ‘the perfect storm’ in some markets where the rents required by the project’s proforma exceed the tenant’s willingness to pay. This convergence is slowing the growth of new developments and is further compounded by the increasing difficulties of obtaining entitlements for new development. Redevelopment and shadow anchored development will provide companies such as Highland with growth opportunities in this maturing retail marketplace,” noted Hoxworth. Highland will acquire vacant land of eight to 50 acres in selected markets of CA, NV, AZ and UT for the ground up development of shopping centers and retail driven mixed-use centers as well as unanchored ground up development sites of two to six acres at intersections and near other retail or office projects. The company will also acquire existing retail or mixed-use centers that are ripe for redevelopment and parcelization. Once the value of the asset is optimized, the buildings will be sold individually to users or investors. As Vice President of Acquisitions, Caruso is responsible for all acquisitions and disposition activities for Highland. Since 1981, Caruso has acquired, developed, leased or disposed of more than five million sq.ft. of retail property in CA, OR and NV. His prior affiliations include Regional Director of Acquisitions for Burnham Pacific Properties, a publicly traded REIT at the time with assets in excess of $1.1 billion. Highland will also joint venture with one or more of its specialized TMMC affiliates such as Meridian Property Co., Urban Housing Group or SummerHill Homes if the highest and best use of a site includes residential and/or office with its retail development. With projects throughout the Central Valley and the San Francisco East Bay area, Meridian Property Co. specializes in medical and professional office developments. Urban Housing Group is a developer of multifamily and mixed-use residential projects. Urban Housing Group’s current development pipeline includes two projects in San Francisco’s Mission Bay redevelopment area. SummerHill Homes, a builder of distinctive residential communities, is nationally recognized for its urban planning. Highland’s new Director of Development, Michael Singelyn, is responsible for the company’s shadow anchored development activities in CA, NV and AZ, which includes locating new sites and working with tenants to develop build-to-suit and locational strategies. Prior to joining Highland, Singelyn served as the Director of Leasing for Lewis Retail Centers, responsible for all peripheral land transactions in the Inland Empire, Sacramento and Reno. David Rose, Highland’s new Site Acquisitions Director, is responsible for finding shopping center sites in CA, NV and UT. Experienced in acquisitions, Rose has acquired approximately $100 million of vacant and/or under utilized property for development or redevelopment. Prior to joining Highland, Rose was formerly a Development Partner with Arizona Partners in Scottsdale, AZ. With Hoxworth at the helm, the company now has more than 500,000 sq.ft. in various stages of development, redevelopment or completion including two projects in CA and one in Phoenix, AZ. Last year, Highland purchased a total of approximately 375,000 sq.ft. of retail and commercial buildings located on approximately 28 acres surrounding the more than one-million sq.ft. Metrocenter Mall in Phoenix. Metrocenter Mall is anchored by Dillard’s, Robinsons-May, Sears and JCPenney, plus a 12-screen Harkins Theatre. With approximately 45% of the 200,000 sq.ft. of retail space vacant at the time of the purchase and several buildings requiring demolition, Highland created an effective repositioning strategy to renovate and redevelop several buildings as well as parcelize the site. Once the redevelopment plan is complete, Highland will sell the various leased buildings to investors or users. “We expect this investment cycle to be completed by spring of 2007 and achieve an outstanding return. We are currently 40% sold or completed,” Hoxworth reported. In La Quinta, CA, near Palm Springs, Highland closed escrow in June 2006 on a site across the street from the new Costco on Highway 111. Highland’s development strategy for the Dunes Retail Center is to entitle, build and lease three multi-tenant pad buildings totaling nearly 22,600 sq.ft. of retail space. “Once we complete the development, we anticipate selling the buildings individually,” said Hoxworth. Construction is expected to start in the first quarter of 2007. In the Central Valley of CA, Highland recently completed the repositioning, development of the pads and the parcelization of a 225,000 sq.ft. community center anchored by Albertsons, Orchard Supply Hardware and Staples. Located on 25.5 acres, Hanford Towne Centre is a dominant grocery-anchored shopping center located in the growing community of Hanford. “This project is an excellent example of the type of value-add projects that we are looking for,” Hoxworth said. “Our approach is to build a great company that excels in retail development and acquisitions by capitalizing on under served market niches and imperfections. We have spent a great deal of effort refining our sourcing strategies and utilizing the extensive market data available to us through TMMC. Our team’s successful track record, market knowledge and long-standing tenant relationships, combined with our association with TMMC and its affiliates, provide us with unparalleled experience, funding and support to accomplish our development and acquisition goals. It is this great combination that gives us a sizeable competitive advantage,” Hoxworth said.
For more information, contact Greg Hoxworth, Highland Development Co., 80 South Lake Avenue, Ste. 615, Pasadena, CA 91101; 626-696-2000, Fax 626-696-2001, Web site: www.highlanddevco.com. |