February 2023
STREAM REALTY PARTNERS | TABLE OF CONTENTS
About Stream Stream Team Client List
Portfolio Management Site Selection Process & Strategy Financial Analysis Construction Management Development & Construction Case Studies Program Management Capabilities & Experience Case Studies
STREAM REALTY PARTNERS | INTRODUCTION
About Stream
Stream Realty Partners is a full-service commercial real estate firm with integrated offerings in leasing, property management, tenant representation, development, construction management, investment sales, and investment management services. Headquartered in Dallas, Stream is dedicated to sourcing acquisition and development opportunities for the firm and its clients. Since 1996, the company has grown to a staff of more than 1,200 professionals with offices in Atlanta, Austin, the Carolinas, Chicago, Dallas, Denver, Fort Worth, Houston, Nashville, Northern Virginia, Phoenix, San Antonio, South Florida, Southern California, and Washington, D.C. Stream completes more than $5.8 billion in real estate transactions annually and is an active investor and developer across the nation.
OFFICE
INDUSTRIAL
RETAIL
HEALTHCARE
DATA CENTERS
TENANT REPRESENTATION Our tenant representation team translates the business needs of our clients into a successful lease or purchase while eliminating surprises in every facet of the real estate transaction along the way. DEVELOPMENT MANAGEMENT Our development teams’ unique ability to translate perceived demand into a space concept that will meet that demand makes our development approach unique and unmatched. LEASING & SALES Stream’s leasing team has a strong track record in marketing client properties for sale, lease, or sublease in the office, industrial, retail, multifamily and healthcare markets. MARKETING Our creative team functions differently than any other firm. We maximize your dollar and your message by producing all design, copy and strategy in-house. Essentially, we’re an ad agency at your fingertips. PROPERTY MANAGEMENT We realize our business is all about people. We’ve proven that outstanding customer service generates high levels of tenant satisfaction, bringing higher occupancy levels and property value. ACCOUNTING Our full service accounting team operates as a unified extension of our client’s company. We are capable and dedicated to flawlessly executing the specific requirements of our clients. BOTTOM UP RESEARCH Covering areas such as supply characteristics, demand drivers, market dynamics, labor, macroeconomic trends and portfolio strategy in major markets across the nation, our research deliverables help clients better understand the opportunities and risks that affect their respective markets.
JOINT VENTURE Stream regularly acquires or develops institutional-grade assets through joint-venture arrangements with institutional partners in the office, industrial, retail, and data center markets. PROJECT MANAGEMENT Our project management team works with a firm handle on client business objectives and priorities to ensure that projects meet expectations on-time and on budget. DATA CENTERS The success of your business depends on the reliability, security and flexibility of your data center space. Stream Data Centers is focused on delivering solutions that help keep your business running. HEALTHCARE Stream provides a comprehensive array of best-in-class services to suit the niche demand of the healthcare industry. Our team of professionals offer creative and efficient solutions to tackle the complex and dynamic requirements of the healthcare industry. SUSTAINABILITY We are committed to conserving natural resources, using more renewable energy and cutting waste production. We’re implementing best practices in energy management and conservation across our portfolio to reduce, re-use, and recycle. LAND SERVICES Our land experts offer extensive knowledge of local market conditions, development constraints, competitive land parcels and the regulatory landscape, to assist landowners in formulating an approach to maximizing the value of their real estate holdings. PORTFOLIO MANAGEMENT Our portfolio management team tracks all critical dates and provides other ongoing services such as operating expense audits, lease commencement and termination assistance.
Stream Team
Ryan Boozer joined Stream Realty Partners in 2014 and is Partner leading the firm’s Industrial division in Dallas, Texas. Ryan is responsible for managing and directing all industrial tenant representation while continuing to offer his clients, national portfolio management, acquisitions, dispositions, project leasing, investment sales, and development services. During Ryan’s tenure, he has completed in excess of 10,000,000 square feet of industrial, flex, land, and construction transactions, which accounted for over $200,000,000 in transaction volume. Ryan’s honest and assertive personality will be instrumental in Stream’s continued success in today’s marketplace. Ryan’s clients will continue to benefit from excellent service, and unparalleled market knowledge.
Ryan boozer
Managing Director & Partner
Charles Brewer serves as a Vice President for Stream Realty Partners in Dallas, Texas. Charles is responsible for tenant representation, acquisition / disposition services, and project leasing in the Dallas / Fort Worth industrial market and across the United States where his clients have requirements. Charles' superior work ethic, competitiveness, dedication, and professionalism have quickly proven to be valuable assets to Stream Realty. In his brief time at Stream Realty Partners, Charles has become one of the top producing brokers in the company. Prior to joining Stream, Charles began his Commercial Real Estate career in 2018 on the heels of a ten-year professional baseball career in which he reached the Major League level with the Arizona Diamondbacks and Cleveland Indians.
Vice President, Corporate Services & Tenant Representation
CHARLES BREWER
Lena Pierce joined Stream Realty Partners in 2018 and serves as a Senior Associate for the Industrial Team in the Dallas office. Lena is responsible for Project Leasing and Tenant Representation, as well as Acquisition and Disposition services. Before joining Stream, Lena graduated from Texas A&M University with a BBA in Marketing. At University, Lena was involved in a variety of campus organizations. Her competitiveness, relationship building, and attention to detail are proving to be valuable assets to Stream.
Senior Associate
LENA PIERCE
management team
portfolio management
1,400
Dedicated Real Estate Professionals
GLOBAL REACH
Expert Knowledge & Professionalism with
Abbreviated Client List
VALUED CLIENTS - USERS OF REAL ESTATE
PRINCIPAL PARTNERS/CLIENTS - INVESTORS OF REAL ESTATE
NATIONAL PROGRAM MANAGEMENT CLIENTS
STREAM REALTY PARTNERS | CORPORATE SERVICES OVERVIEW
PORTFOLIO MANAGEMENT
A single point of contact (SPOC), no “hand-offs” approach Transparent, performance-based delivery Best-in-class local market experience Portfolio reporting and accountability Scalability across markets/requirements Tailored and flexible strategies to align with your business Reliance on trusted partners
Why does experienced portfolio management matter to you?
Phase
1
Due Diligence & Strategy Development
Baseline understanding of current real estate portfolio Identify mark-to-market opportunities Distribution network analysis/location intelligence analysis & modeling Better understand business drivers for growth, maintenance, or optimization Develop real estate strategy to align with business strategy
Implementation of Portfolio Direction
Transaction management Lease administration Portfolio management OpEx reconciliation Facilities management Legal review & negotiation
2
Incentives, construction & project management Site selection Development advisory Flexible capital solutions Financial analysis
Ongoing KPI Reporting & Strategic Support
Goal alignment Ongoing strategy adjustments KPI reporting Performance tracking
3
Site Selection
1. NEEDS ANALYSIS/PROJECT OUTLINE
Number of employees Number of offices/open area Warehouse space SF Clear height
Our needs analysis uncovers every aspect of our client's existing and projected real estate needs.
Number of dock doors Truck court depth HVAC needs in warehouse Power requirements
2. DISTRIBUTION NETWORK ANALYSIS
Perform an in-depth study of each location or service center to provide ideal location parameters.
3. DEMOGRAPHIC STUDIES & MODELING
Perform individual demographic studies and modeling for specific locations. Different factors could consist of employee/vendor/customer housing prices, wage and salary breakdown.
4. POTENTIAL SITES
Provide a full comprehensive market survey for each requirement. During this research we identify available properties, track comparable leases and sales and look into hidden market opportunities.
5. DEVELOPMENT OF STRATEGY & GOALS
Establish Critical Dates Maintain Timelines Under Negotiations Ensure Proper Leverage Manage Construction Timelines Ensure Due Diligence is Performed Timely
Develop a timeline for each project.
7. facility design
We understand that optimizing a company’s spatial needs directly impacts the bottom line. Knowledge of a client’s objectives and goals is mission critical in ensuring their facility is delivered with maximum efficiency.
6. FINANCIAL ANALYSIS
From the moment we begin working with our clients, we “uncover” all direct and indirect costs associated with their real estate transactions. Nobody does it better than Stream -- “we eliminate surprises”.
Financial Analysis of Alternatives Lease vs. Purchase Economic Incentive Impact Operating Expense Analysis
Sale/Leaseback Move Costs Utility Costs Tax Impact
Financial Analysis
executive summary
LEASE VS. OWN (GAAP IMPACT)
LEASE COMPARISON (TAX IMPACT)
Sr. Director, Financial Analytics
JOANN HWANG
Facebook, Inc. AECOM VF Corporation Fox Entertainment Deluxe Entertainment Apple Korean Air NFL Chewy, Inc. VM Innovations Webber Logistics JP Morgan Chase Petsmart Transplace Logistics Solutions
CLIENT EXPERIENCE
analysis types
• Lease Comparison • Renewal vs Relocation • Sublease • Sale/Leaseback • Blend & Extend • Lease Termination / Buyout / Contraction • HQ Development/BTS • Multi-Location Consolidation • Lease vs Own • Corporate Occupier Investment Sales • ASC 842/IFRS 16 Lease Accounting Impact • Indifference Analysis
Construction Management
CONNECTION PARK
TRINITY CROSSING
RIVERFRONT
INTERNATIONAL LOGISTICS CENTER
At the heart of Stream’s development team is an entrepreneurial drive which seeks to maximize returns with the minimum commitment of our clients’ time and money. Our teams work seamlessly and efficiently to translate perceived demand into a first class product that will meet that demand. Stream’s resume includes all types of development whether speculative, build to suit, conversion or re-development across all product lines including office, industrial, data centers and retail. We will always consider the owner’s exit strategy regardless of long term intentions. Our vast market knowledge ensures maximum flexibility with the project program and criteria.Ninety percent of cost overruns on development projects occur due to inattention to details during the first fifteen percent of the development process. During the pre-construction phase, we will conduct site analyses of environmental conditions, soil quality, access, drainage, traffic, entitlement, and zoning. Stream will establish a preliminary budget and pro forma and monitor design meetings to control the design-to-budget process. As the project progresses, Stream monitors pricing and bidding to carefully track budget to actual performance of the project.
• Site evaluation and acquisition • Capital markets/construction financing • Coordination of closing/funding process • Incentives review (tax abatements, job programs, infrastructure) • Utility/infrastructure assessments • Environmental and geotechnical coordination and review • Master planning review • Value engineering/right pricing • Land ownership • Architectural and contractor qualifications and selection • Contract negotiations, review and documentation
• Zoning and code compliance evaluations • Impact fee analysis • Traffic study coordination • Project meetings • Accounting and payables • Draw documentation • Partnership equity records • Insurance analysis • Scheduling • Change order administration • Quality control and material testing coordination and review
2000 ROSS
NORTHPORT 35
FARMER BROTHERS
PINNACLE TOWER
Construction is just one element in the project life cycle – but often represents the single largest cost and the riskiest management challenge. Stream’s project management professionals play a key role from start to finish. We maintain a firm handle on client business objectives and priorities to ensure that projects meet expectations on-time and on budget. During the construction phase, Stream will pre-qualify contractors, subcontractors, and vendors then review, compare and prepare a scope analysis of the bids. We will monitor the budget and schedule on a weekly basis. We will review and approve the monthly pay applications, collect lien releases, W-9’s, and submit draws, write checks, and record equity contributions. At the end of the project we will establish substantial completion, coordinate with the users furniture and system vendors, monitor the punch list and commissioning, and assemble the close-out and warranty documents.
• Identification of project requirements and goals • Identify and pre-qualify, contractors, subcontractors, and vendors • Project cost budgeting • Review and monitor design development and construction documents • Cost analysis during design phase – oversee design vs. budget • Integrate client technology requirements into planning process • Issue bid package • Evaluation of contractor and supplier bids • Monitor building permit and occupancy requirements • Administrate construction contracts and subcontractor selection • Oversee construction schedule and completion dates • Track project costs and budgets • Monitor furniture and network equipment installation • Monitor punch list and close-out documentation.
TYPICAL PROJECT MANAGEMENT SERVICES
We See What Others Don't
Thinking & Acting Differently Every development is different for one reason or another. Being able to identify, respect and take advantage of those differences is where we set ourselves apart. Flexibility and creativity with architectural designs, capital structures, site-specific challenges and lease-up strategies are the hallmarks of our business model and what ultimately yield the best results for our clients. Client-Focused We achieve client success by sourcing and executing sound development opportunities. Our mindset and approach are distinct in the industry — placing our clients’ needs first, and executing with foresight and perseverance. End-to-End Service We are constantly collaborating with our construction management, leasing and capital markets teams. This one-team approach enhances our service delivery and ability to uncover industrial development opportunities with greater velocity. Owner Mentality We not only advise owners, but also have a long history of being owners of real estate with a highly successful track record. Our counsel is always based on first-hand experience.
Continuum of Services
As part of a larger, full-service commercial real estate and investment firm, the Industrial Development Services team offers a full suite of development-related services for our clients.
Market knowledge & site selection Due Diligence Development Planning & Design Project Scheduling & Budgeting Underwriting & Financial Analysis Entitlement Guidance & Execution Deal Structuring Capital Markets Strategy Land Acquisition Design & Permitting Bid Award / Contracting construction management tenant finish work property management property disposition
1.24B
4.44B
$
PROJECTS IN PRODUCTION
PIPELINE PROJECTS
Stream IDS Vision
Successful developments hinge on the convergence of several factors including real-time market supply/demand insight, product knowledge, strategic capital markets vision, entitlement experience, and proven ground-up construction management expertise. The Stream IDS business model is built to simultaneously leverage our local market experience with our corporate-level infrastructure to seamlessly execute each opportunity. Our directors lead the pursuit of new opportunities in partnership with our local transaction specialists across our target markets, and we deliver high functioning project-level teams to each of our developments who collaboratively work together and ultimately create exceptional investment opportunities for our partners. As Stream IDS continues to grow, we will continue to populate new talent on a regional and local level.
STREAM REALTY PARTNERS | DEVELOPMENT & CONSTRUCTION
Goodman Edinburg
Build-to-Suit | Joint Venture
Project Highlights
Opportunity Leveraging Stream’s brokerage relationship, Stream identified an opportunity to help an existing client meet their needs in a tertiary market. Goodman operates over 200 locations across the United States and needed a new facility to continue efficiently operating in Edinburg, Texas. Upon an initial search of viable solutions in the area, it was concluded the existing product would not meet Goodman’s requirements. Strategy Given the location, there was virtually no speculative development in the area, so Stream set out to develop and own the new building. Stream worked hand in hand with Goodman to select the site, design the building to meet their specific requirements, and structure a long-term lease on the asset. Results While this was Stream’s first development in this market, Stream leveraged existing relationships to find best in class consultants to help execute the project. With a fantastic team on board, Stream was able to rezone the site, deliver the building under budget, and meet Goodman’s tight timeline before their existing lease expiration. From the receipt of the building permit to the certificate of occupancy, the project was completed in under 6 months. This successful project has paved the way for future Goodman developments in other markets.
Build-to-Suit Location: Edinburg, TX Size: 41,875 SF Lead Tenant: Goodman Distribution, Inc. Key Services: Budgeting, Construction Management, Debt Source, Design, Development, Leasing, Project Scheduling, Replatting, Rezoning, Site Selection
Farmer Brothers
Build-to-Suit | 1031 Exchange
Opportunity Stream assisted with an extremely specialized industrial facility, completing the high-profile relocation from California to Dallas of Farmer Brothers Company (NASDAQ: FARM), a leading manufacturer, wholesaler and distributor of a variety of high-quality coffee and tea products. This complex time- and cost-sensitive delivery included three components within the 545,000 SF facility: 85,000 SF Corporate Offices, 200,000 SF Roasting & Manufacturing facility and 260,000 SF Distribution facility. The challenge in completing this development was in the capital structure and funding the facility in the most economically efficient manner possible for FARM.
Industrial HQ Development Location: Northlake, TX Size: 545,000 SF Lead Tenant: Farmer Brothers, Build-to-Suit Recognitions: LEED certified, Best New Industrial Development - DCEO Magazine, Award of Merit - ENR TX & LA Key Services: Asset Sale, Capital Structure, Construction Management, Design, Government/Incentives Negotiation, Grand Opening, Marketing, Public Relations, Site Selection
Strategy Taking the lead, Stream assembled and cohesively managed a large interdisciplinary team of experts to plan, design and deliver a highly technical one-of-a-kind, build-to-suit facility. Stream’s plan included assistance with the project oversight, coordination and reporting for a large institutional capital partner to fund 100% of the project through a leaseback with purchase-option structure, providing the economic efficiency FARM sought in the development. Results Stream executed a creative financial structure on behalf of FARM, maximizing economic efficiencies through a number of capital options including the sale of FARM’s California land to a Fund Project, advantageous use of U.S. 1031 tax opportunities, the leaseback scenario of the facility as constructed and eventual execution of the purchase option with project completion. Additionally, Stream located the proper development site just as it was coming to market, due primarily to our presence as a developer in the market.
Tapo Canyon Commerce Center
Speculative Development | Joint Venture
Opportunity 1800 Tapo Canyon Road historically operated as a low-rise suburban office building since the early 1980s. However, the 18-acre property was zoned Light Industrial. Given the lack of available industrial land and modern logistics facilities throughout the LA North market, as well as the evolution in the importance of industrial building proximity to the consumer, we saw through the fully-leased office building, quickly acted to acquire the opportunity off-market, and closed during peak COVID uncertainty in the summer of 2020.
Development Status: Breaking Ground Q3 2021 Location: Tapo: Simi Valley, CA (LA North) Size: 350,000 SF Buildings: 5 Key Services: Budgeting, Construction Management, Debt Source, Design, Development, Leasing, Project Scheduling, Replatting, Rezoning, Site Selection
Strategy Despite the macro headwinds at the time of property acquisition, our conviction in the site’s development potential never wavered. Immediately after closing on the land, we commenced the entitlement process for Tapo Canyon Commerce Center. After a 9-month process of community outreach and collaboratively working with various departments at the City of Simi Valley, Stream successfully received Planning Commission approval in March 2021 to develop over 350,000 SF of light industrial product across 5 buildings.From a project design standpoint, each building was designed after in-depth analysis of the supply and demand dynamics in LA North, as well as a keen understanding of the LA North industrial market’s needs and deficiencies. Tapo Canyon Commerce Center offers brand-new industrial facilities that range in size from 26K SF to 136K SF and provide project features such as, but not limited to, 28- to 36-foot clear heights, high image, window lined office space, above standard dock high loading, multiple access points to the campus, and immediate 118-Freeway access. Results The development is under construction and is expected to substantially complete by Q4 2022.
Northwest Commerce Park
Opportunity In a partnership with Morgan Stanley, Stream identified an opportunity to acquire a well located 76-acre site in North Fort Worth. The site is ideally positioned 1.25 miles west of the intersection of Interstate 35W, which connects Mexico with Canada, and SH 114. The site was extremely attractive as it sits within a flourishing labor market with expanding rooftops and could pull from an existing tenant base greater than 151 million SF between North Fort Worth and DFW Airport. However, the land needed to be rezoned and annexed into the City of Fort Worth prior to development.
Strategy Upon acquiring the land, the partnership sold a 5-acre parcel of frontage land at a profit to focus on the core industrial dirt and further buy down the land basis. In addition, Stream successfully lead the efforts to rezone NCP to heavy manufacturing (“K”) and annex the property into the city of Fort Worth. Stream also worked with the neighbors to acquire several needed easements. NCP was designed as a Class A development with a diverse 3-building offering (32’ – 40’ clear heights) to capture tenant demand across a broad spectrum of requirements. The Partnership sourced accretive pari-passu financing to boost returns for the Project. Results NCP was sold as three separate buildings to three different purchasers within one month of substantial completion. The highly complex multi building project was delivered under budget and met all of the tight timelines required by the purchasers. The partnership agreed to terms with an owner/user on the first building sale, seven months prior to completion. The second building was sold to a separate owner/user concurrently with substantial completion. The partnership exited the last remaining building by selling to an institutional investor one month after substantial completion.
Speculative Development Location: Fort Worth, TX Size: 1,091,240 SF Lead Tenant: Nutri-Bon Distribution Company, Inc. & DHL Supply Chain Key Services: Annexation, Budgeting, Construction Management, Debt Source, Design, Development, Disposition, Leasing, Project Scheduling, Replatting, Rezoning, Site Selection
Santa Ana Commerce Center
Speculative Development | Fee Development
Opportunity Upon review of this opportunity, Stream quickly underwrote and subsequently tied up this off-market industrial site located in Fontana’s SWIP. Despite working with a tight inspection period allotted by the sellers, Stream led a successful due diligence effort and closed as fee developer alongside Cabot Properties, with whom Stream has a long-standing relationship. The development presented the opportunity for Cabot to expand its investment footprint in the Inland Empire (IE) and Stream to plant its industrial development flag in the IE. Strategy This development resulted from the team’s methodical site selection approach that focused on identifying well-located real estate west of I-215. With the desired zoning in place, this site additionally offered future tenants excellent access to several major thoroughfare via Slover Avenue, I-10, I-15 and Route 60. In terms of the construction and design, the team’s primary goals were to design a site with efficient coverage, functional divisibility and flexible ingress/egress. Results Led by Stream as fee developer on behalf of Cabot, Santa Ana Commerce Center achieved fully entitled status in the fourth quarter of 2019, pre-leased in October 2020, and substantially completed in November 2020.
Speculative Industrial Development Location: Edinburg, TX Size: 41,875 SF Key Services: Budgeting, Construction Management, Debt Source, Design, Development, Leasing, Project Scheduling, Replatting, Rezoning, Site Selection
Growing with our clients is one of the best byproducts of our development business. Santa Ana Commerce Center is an excellent example of that relationship as Stream helped Cabot expand their Inland Empire footprint and Cabot helped Stream break into the market. Perfect outcome.
Marty Pupil Executive Managing Director
Stream Realty Partners | GLA
STREAM REALTY PARTNERS | PROGRAM MANAGEMENT
The Capability & Experience to Deliver
FACILITY PLANNING
Inside Box based on equipment layout/product flow to determine optimized real estate
Cold Storage Food Processing Manufacturing Specialty Distribution (ReD, Food & Beverage, etc.) Business Case Development R&D/Lab Space
SPECIALIZATION
Facility Planning/Front-End-Load Engineering Planning Environmental Remediation Decommissioning/Business Relocation Office Retail
END-TO-END PROGRAM FOCUS
Equipment MHE Racking IT Security LP
FF&E HR BEI Inventory Management Supply Chain Real Estate
Plan (Business Case Plan) Design Permitting Construction Commissioning Close-out
*Select phases are the experience of National Program Management Team prior to joining Stream
STREAM REALTY PARTNERS | CASE STUDIES
Through a Single Point of Contact Stream has partnered with Daikin Industries (previously known as Goodman Manufacturing) for the past 13 years to successfully ensure the consistent alignment of their real estate needs with their corporate strategic goals as both companies continue to grow their platform and expand into new markets.
2009 Goodman Manufacturing partners with Stream and three real estate firms to manage various needs in different parts of the United States and Canada. 2012 Daikin purchases Goodman Manufacturing. 2017 When Daikin was considering a highly confidential, major consolidation, Stream confidentially located and purchased land, and developed a two million-square-foot industrial asset that we then leased to Daikin without anyone outside Stream knowing about Daikin’s business move. 2018 When the existing available spaces in the tertiary markets, Edinburg, TX, Corpus Christi, TX and Panama City, FL. did not suit Daikin’s needs, Stream purchased land and developed a class A industrial facility to meet the long term needs of Daikin. 2020 The Edinburg build-to-suit and Corpus Christi build-to-suit are delivered.
Partnership Milestones:
2021 Daikin engages Stream’s Program Management platform which allows Stream and Daikin to build industrial manufacturing and development facilities that account for people, process, and future business goals to support Daikin’s scalable business. 2022 Stream was negotiating a lease in Vancouver, WA on Daikin’s behalf and the ownership’s attorney was being overly difficult. Due to Stream’s network and positive reputation, Stream contacted the building owner’s Head of Asset Management and was able to come to an agreeable outcome. 2022 When the current Landlord of a property in which Daikin occupied in Jacksonville, FL was no longer maintaining the building, Stream purchased the building, made the necessary improvements, and became their new Landlord. This resulted in Daikin being able to continue manufacturing (even through construction) and save costs as building a similar asset in the area would cost them 40 percent more.
RYAN BOOZER Managing Director & Partner ryan.boozer@streamrealty.com 214-210-1414 CHARLES BREWER Vice President, Corporate Services & Tenant Representation charles.brewer@streamrealty.com 214-560-2960