In 1986, just two years after Bob Mohr relocated his family from Indiana to Dallas to dip his toes in commercial real estate, the bottom fell out of the local market.
While this kind of timing would send lesser professionals packing, Mohr stayed the course. Over the next 35 years, he worked himself into the Dallas elite as the inimitable power broker behind the formidable global corporate real estate firm Mohr Partners.
Now, Mohr is building another empire with Mohr Capital. Yet, instead of just representing corporations, he’s leveraging his amassed capital and national network of tenant and financing relationships to buy and develop the ground they operate on.
In 2020, with a pandemic raging and tenant defaults becoming par for the course, Mohr Capital managed to close 12 significant industrial and office transactions valued at approximately $250 million.
Mohr Capital, a Dallas-based privately held real estate investment firm, has acquired an existing convenience store located at 3355 Cobb Parkway in Acworth, Georgia, for redevelopment as a Chipotle Mexican Grill.
The property is a 1.36-acre outparcel in front of Home Depot, fronting Cobb Parkway, across from Lakeside Marketplace. Mohr Capital began razing the existing 2,325-square-foot building – a T-Fuel gas station and convenience store – in January and will deliver the pad site to Chipotle.
Chipotle Mexican Grill Inc., a fast-casual restaurant chain with more than 2,700 locations and 94,000 employees, will develop one of its new drive-thru stores – called “Chipotlanes” – on the property and expects to complete construction in 2021. Kimley-Horn Engineering and GPD Group will serve as architecture consultants on the project.
“We’re excited to announce our first retail acquisition in Georgia and a continuation of our partnership with Chipotle,” said Rob Solls, director of retail investments and acquisitions for Mohr Capital. “The property itself exhibits high-quality real estate fundamentals. It’s located off a heavily trafficked corridor and surrounded by national credit big-box retailers like Target and Home Depot. We are confident Chipotle will perform well at this location, and we’re pleased to add the property to our growing retail portfolio.”
Mohr Capital is pursuing more retail transactions in the Atlanta area and seeking value-add retail investment opportunities nationally. The firm currently has multiple retail projects under development and/or management in the West, Midwest, South and Southeast United States. Mohr’s retail division focuses on speculative investments, the acquisition of existing assets with lease monetization opportunities, and build-to-suit development for franchisees and corporate tenants.
“This is our second transaction with Chipotle in the past six months, and it perfectly exemplifies our strategy to source and close desirable retail property that attracts credit tenants,” said Bob Mohr, chairman of Mohr Capital. “Chipotle has performed well in the pandemic, leveraging its app and new drive-thru concept to grow its digital sales. We’re happy to help in that effort.”
The deal marks Mohr Capital's third acquisition in less than 30 days following two successful investments in single-tenant industrial and office facilities in California and Florida. In 2020, Mohr Capital completed 12 transactions in Arizona, California, Florida, Georgia, Indiana and Texas valued at $200 million.
Despite a global pandemic that propelled the commercial real estate industry into uncertainty, Mohr Capital closed 2020 with a blistering track record: 12 transactions in 12 months valued at more than $200 million. The transactions spanned the gamut of Mohr’s offerings — from build-to-suit industrial and retail development, to office, industrial and retail acquisitions across the country.
Yet, Mohr Capital didn’t navigate through the pandemic unhindered. State and municipal shelter-in-place orders and corporate work-from-home policies impacted their tenants as much as anyone’s.
“Like most other companies, the pandemic caused our tenants to reconsider their real estate needs,” said Bob Mohr, chairman of Mohr Capital. “Whether our tenants needed to expand or contract their space requirements, we were happy to work with them to find suitable solutions, especially during unprecedented times like these.”
How does Mohr Capital plan to overcome an unrelenting pandemic which continues to impede business-as-usual? The secret lies in the firm’s family office structure and single source of capital.
“We’re laser-focused on value creation and have longstanding banking relationships to execute deals quickly,” said Mohr. “This year, we’re more resolved than ever to grow the company through expanding our portfolio of quality real estate — we already have deals in the pipeline and are looking for more.”
Here’s a look at Mohr’s 2020 deal volume by asset class:
While the pandemic struck a destabilizing blow to office real estate in 2020, Mohr Capital acquired two high-quality office buildings with both multi-credit and single-tenant leases in Dallas, Texas, and Orlando, Florida.
“With office acquisitions, we focus on mission-critical facilities with credit tenants and solid real estate fundamentals,” said Rodrigo Godoi, managing director of investments for Mohr Capital. “Both of the properties we acquired in 2020 fulfill these criteria. We believe they will be able to withstand lingering pandemic headwinds in 2021, while providing a solid return on investment.”
The office buildings Mohr acquired in 2020 include:
A 12-story, 200,000-square-foot office building located at the intersection of LBJ and the Dallas North Tollway. The property is 90 percent leased.
A two-story, 78,449-square-foot office building fully leased to Accredo Health Group, Inc., a subsidiary of the global health service company Cigna Corporation.
Out of all CRE asset classes, industrial real estate has proved to be the most resilient throughout the pandemic. Mohr Capital recognized this and leveraged its capital and financing relationships to acquire and develop industrial properties across the nation.
“The pandemic changed how businesses operate and consumers shop,” said Gary Horn, chief development officer for Mohr Capital. “Industrial assets like warehouses and logistics centers have managed to gain value in this environment, and we were able to add several of these properties to our portfolio in 2020.”
Mohr Capital’s industrial transactions and developments last year include:
A one million-square-foot warehouse and distribution facility development. Once complete, the facility will house Cooper Tire in its newest Indiana location.
This facility was a prototype development unveiled at a Herc Rentals annual board meeting. The sale provided the buyer with a high-quality credit tenant and a steady revenue stream.
A 400,000-square-foot facility for Cooper Tire located off a high-traffic interstate. Mohr Capital sold the property to an institutional buyer after 14 years of ownership.
The acquisition of 184 acres of land for Phase I of Mohr Logistics Park, a master-planned industrial park. Future phases in the Park will encompass more than 500 acres. Mohr will begin the speculative development of an 827,180-square-foot building in Spring 2021.
A 200,000-square-foot development with an additional 23 acres of storage capacity built for GAF Materials. Mohr Capital began construction in January 2020 and completed the building in November 2020, on time and on budget.
A 102,466-square-foot mission-critical facility for a Compass Group subsidiary providing state-of-the-art laundry processing services to Northern California hospital systems.
The retail and hospitality sectors took the brunt of the pandemic’s blow on commercial real estate. Nationally, nearly half of commercial retail rents went unpaid in April and May. Despite this, a subsector of both retail and hospitality — fast food and fast-casual restaurants — thrived in 2020.
“Well-capitalized chains performed exceptionally well during the pandemic,” said Rob Solls, director of retail investments and acquisitions for Mohr Capital. “In 2020, Mohr Capital was able to source, acquire and sell high-quality retail real estate and attract best-in-class operators.”
Mohr Capital’s retail acquisitions, dispositions and redevelopments in 2020 include:
A property acquisition for the redevelopment and construction of freestanding structures leased to Regions Bank and Chipotle Mexican Grill — both corporately guaranteed and operated.
The sale of a fast-food restaurant property leased by Wendy’s in one of Phoenix’s most affluent suburbs. The location is corporate-guaranteed and a large franchisee-operated restaurant.
A property acquisition and redevelopment for Chipotle Mexican Grill, Inc. Mohr will raze the existing building and deliver a pad site to Chipotle to develop one of its new format drive-thru restaurants.
Mohr Capital, a Dallas-based privately held real estate investment firm, has acquired a two-story, 78,449-square-foot office building in Lee Vista Business Park, a master-planned business park in Orlando, Florida.
Located a mile north of Florida's 528 Expressway at 6272 Lee Vista Blvd., the building is fully leased to Accredo Health Group Inc., an Express Scripts company and subsidiary of the global health service company Cigna Corporation. The facility houses a distribution operation, office space for executives, a specialty pharmacy with clean rooms and a team of specialty-trained pharmacists and nurses who work directly with patients to manage their complex medical conditions.
"Orlando is an attractive market for investors, and we're pleased to close on this mission-critical facility for Cigna. This is our first transaction in the state of Florida and it adds to our continued focus on acquiring best-in-class, single-tenant credit facilities nationwide," said Rodrigo Godoi, managing director of investments for Mohr Capital.
The facility was first developed in 2006 for CuraScript Inc., which merged with Accredo in 2012. Godoi represented Mohr Capital throughout the transaction. Ron Rogg at CBRE handled the sale on behalf of the seller.
"As a privately held investment firm that can move quickly, we worked closely with Cigna and CBRE to facilitate Accredo's long-term occupancy requirements and close the deal fast," said Bob Mohr, chairman of Mohr Capital.
The transaction marks Mohr Capital's second acquisition in less than 30 days following its successful investment in a single-tenant industrial facility in California's Silicon Valley. In 2020, Mohr Capital completed 12 transactions in Arizona, California, Florida, Georgia, Indiana and Texas valued at $200 million.
Mohr Capital, a Dallas-based privately held real estate investment firm, has acquired a 102,466-square-foot industrial building located at 8190 Murray Avenue in Gilroy, California.
The property is fully leased to Crothall Healthcare, a subsidiary of the Compass Group, a $26 billion British-based multinational company with operations in 45 countries and more than 500,000 employees. Crothall Healthcare's mission-critical facility provides state-of-the-art laundry processing services to Northern California hospital systems, enabling them to continue providing medical care to patients.
"Mohr Capital focuses on acquiring best-in-class and mission-critical facilities with credit tenants nationwide," said Rodrigo Godoi, managing director of investments for Mohr Capital. "The pandemic has presented industrial CRE with its share of challenges and opportunities. When we came across this Compass Group mission-critical facility, which is helping hospitals remain operational at a very critical time, we knew this was a sound property investment opportunity."
This is Mohr Capital's second acquisition in the Bay Area following a successful investment in Pacific Corporate Center, a 207,806-square-foot, Class "A" R&D/Flex Park located in Livermore, California. Mohr Capital acquired the property below replacement cost in a desirable area near the Lawrence Livermore National Laboratory and the Sandia National Laboratory. The park is occupied by FormFactor, the world's leading semiconductor probe card manufacturer. The property is fully leased.
"Despite the pandemic's effect on California commercial real estate in 2020, we felt the time was right to add to our portfolio with our second acquisition in the state," said Bob Mohr, chairman of Mohr Capital. "We're pleased our investment will support the critical needs of hospital systems, hospitals, frontline health care workers, and patients across Northern California during the pandemic."
To date in 2020, Mohr Capital has completed ten transactions in Texas, Arizona, Indiana, California and Florida valued at $200 million with more acquisitions scheduled to close before the end of the year.
Mohr Capital, a Dallas-based privately held real estate investment firm, has completed a 200,000-square-foot office and warehouse facility with 23 acres of concrete storage capacity for GAF Materials Corporation (GAF) in Michigan City, Indiana.
Located at 130 Tri Quad Drive, Michigan City, Indiana, GAF's mission-critical facility will serve as a distribution network for roofing products. GAF is North America's largest roofing and waterproofing manufacturer and a subsidiary of Standard Industries, a global company focused on building materials. The company also maintains a shingle manufacturing plant in the city.
"With this facility, GAF has expanded its presence in Michigan City and contributed to the strength of the local economy," said Gary Horn, chief development officer at Mohr Capital. "Moreover, the completion of this project represents another successful partnership between Mohr Capital and GAF, adding to our growing industrial development portfolio."
Construction of the GAF facility began in January 2020, with an expected construction schedule of 12 months. The facility was completed ahead of schedule and on budget by the end of November.
"We're proud to partner with GAF to expand its presence in Michigan City," said Bob Mohr, chairman of Mohr Capital. "Mohr Capital's development arm leverages its own capital and long-standing debt relationships to take on projects like this one and deliver it to companies in a quick, cost-effective manner."
GAF Operations Director Matt Hannon and Senior Process Engineer Chris "Stump" Engibous oversaw the project. Larson Danielson was the general contractor. Bank of Texas provided financial support for the construction. Mike Maratea, real estate counsel for Standard Industries, and Gary Horn negotiated the ground lease and lease agreement.
To date in 2020, Mohr Capital has completed ten transactions in Texas, Arizona, Indiana, California and Florida valued at $200 million, with more acquisitions scheduled to close before the end of the year.