By Todd McNeill
At Metropolitan Capital Advisors (MCA), we refer to the Entrepreneurial Developer as our “niche” client. We define these developers as shops that are in the market seeking capital one to ten times a year, that generally do not have in-house finance expertise nor do they care to have in-house finance people. Rather, they would come to my firm when and if they need capital and engage MCA to seek the capital for that particular project.
It is these types of Developers that the City of Dallas has thrived upon, from the early days of Trammell Crow, Henry S. Miller to John Eulich, they all started small and over-time, built legacy companies. In the process of their small entrepreneurial beginnings booming to successful legacy brands, several executives within these companies spun off to create their own platforms to use the skillset learned from these Dallas visionaries to create their own legacy.
Over the years, MCA has had the pleasure of working with several of these firms and in the process have been able to work on projects that much larger institutions would pass over leaving them to smaller shops to devour. Enter the entrepreneurial developer.
These developers have a great passion for their projects and generally, live and breathe each deal as if they have a life of their own. They tend to guarantee recourse debt with regional banks in order to secure the necessary financing, taking risks that typically larger institutions simply can’t or won’t stomach. And almost institutionally pour all their efforts, sweat, blood and tears into these projects because failure would have devastating consequences.
MCA has an affinity for working with these developers and in most cases, the developer’s passion to succeed in their pursuits is echoed by the Senior Director at MCA that is working on the capital placement. It makes the transactions fun and gives a sense of accomplishment and meaning when they are completed.
One such transaction recently closed by MCA was selected by the Dallas Business Journal Best Real Estate Deals as the winner of the Neighborhood Impact category. Options Real Estate, which is directed by Monte Anderson is the developer. Monte is truly a visionary and has poured his passion into South Dallas. Tyler Station, as it is now called today, was a 110,000 s.f. former manufacturing facility built in the 1920s that had environmental issues along with being completely vacant. The entrepreneurial spirit of Mr. Anderson saw a tremendous opportunity. Mr. Anderson purchased the building and embarked on a complete renovation with the business plan focused on attracting local makers, artists and small businesses for a “creative office” adaptive reuse. It is strategically located on the Tyler/Vernon DART station, about a mile away from Bishop Arts and Wynnewood Village. Mr. Anderson purchased the property on a speculative basis and has now since secured several leases along with winning the Dallas Business Journal award. The projects has been a very successful venture for Options all due to the entrepreneurial spirit and passion of Mr. Anderson. While the property sat vacant for several years, Mr. Anderson saw its vacancy as an opportunity to use for the benefit of the community. MCA is honored to have been selected by Mr. Anderson and his team to place the financing on behalf of the partnership.
During our 25 year operating history, over 70% of MCA’s debt and/or equity placement assignments have been for either ground up development or heavy renovation projects. This includes projects and/or properties in healthcare, storage, land development, residential “for sale” product (i.e. subdivisions and condo’s) along with traditional retail, industrial, office, and multifamily. As a result, MCA has a vast knowledge of how to structure and place complex transactions for the entrepreneurial developer.
The author, Todd McNeill is a Principal in the Dallas office of Metropolitan Capital Advisors. Todd can be easily reached at TMcNeill@metcapital.com or 972-267-0600