Yesterday I was a guest of Boxer Properties for lunch. The meeting was very informative because they gave me some insight to how they are thinking but more importantly what they are doing in the present office market in Dallas and in other areas of the country.
If you are not familiar with Boxer Properties they are a successful investor that started in 1992. Their first project was 8500 N. Stemmons in Dallas, Texas. Since then they have improved hundreds of office assets across Texas and they are expanding into other areas of the United States.
The meeting was held at The Centre which is a new investment Boxer Properties made in December 2013. There are eleven buildings in the campus consisting of 800,000 square feet. The tallest building is eleven stories and there are a couple of eight story mid-rise towers and several four story building. It has a 4/1000 parking ratio. Because of the higher parking ration this could make The Centre the perfect office space for dense office users.
Boxer has recently completed several new suites that are move in ready in the 2,000 to 3,000 square foot range. The campus does have a few full floors left with 16,000 square foot contagious floor plates.
Boxer work style space is a new concept that has a more collaborative open tenant space with a lot of co-working space. These spaces are working very well in other properties in Boxer’s across the portfolio. They compete with Regis or Meridian executive suites with a price point of $500 -$600 per month.
Unlike traditional executive suites the Boxer concept doesn’t appear to charge excess res to the tenants like traditional executive suites. They charge rent plus electricity and those are the only expenses to the tenant. They will accept short term leases for a three month period and offer a month of free rent for a twelve month term.
The ownership is excited about the campus and it is leasing very well. Boxer is making an difference and improving the asset. There is a possibility to expand the campus with some retail and Boxer has looked into this possibility in the future however at this time their primary focus is on the office space in the complex and they have no plans at present to take advantage of the retail component.
They are planning an amenity center in the 4100 McEwen building. It will be a really fun and off the wall concept. It is going to be unlike anything else you would see in the Dallas office market. It will have a big conference room, big break rooms like you see in other buildings but it will also have big lounges and maybe a putting green or a bocce ball court. It may have large garage doors that open up to the outside so that food trucks could be brought in to service the facility.
One of the questions to the Boxer executives was if they are finding any opportunities to buy new product in the Dallas area. They indicated that they are and in fact in the final stages of their newest acquisition in Irving off of 183 and 161. They sold 1700 Commerce in downtown Dallas last year to a hotel developer that is in the process of redeveloping. They also sold 7701 Las Colinas Ridge as well. They always have new opportunities in the pipeline. If they had a magic crystal ball the production is that Boxer Properties will be growing in 2015!
Boxer is in the process of growing nationally so there is a lot of emphasis on east coast acquisitions. Dallas is still important but there are a lot of new opportunities on the horizon for Boxer.
In addition to being office investors, Boxer properties also has a hotel group that is expanding as well. in 2014 they had two resorts The Crested Butte ski lodge and in Phoenix the golf resort and a hotel in Minneapolis. Boxer recently purchased a local hotel the Holiday Inn south of DFW Airport. This is an exciting and growing part of the Boxer business.
Obviously things appear to be going very well for this respected office property investor. They are expanding their markets and looking towards a positive future for their business. I appreciated their offer for lunch yesterday and the opportunity to learn more about their recent acquisition of The Centre office park in Dallas and their plans for future growth.