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.
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.
With 2020 throwing curve balls left and right, the commercial real estate industry has seen its own set of challenges, yet Mohr Capital has remained resilient. Our most recent project is Mohr Logistics Park. At 500 acres, it’s the largest industrial park in the Indianapolis area built in the last decade. In late August, Mohr Capital held a groundbreaking ceremony to celebrate the start of construction and its inaugural tenant, a new Cooper Tires facility scheduled to be complete in the first quarter of 2021.
Our team is thrilled to be working in Whiteland, Indiana, and contributing to the area’s growing economy. The project adds to Mohr Capital’s Midwest portfolio that previously included an 800,000-square-foot industrial space in Franklin, Indiana, and currently a 300,000-square-foot on a build-to-suit property in Michigan City that is in the final stages of construction.
No matter how you envision your next office or industrial facility, Mohr Capital is committed to delivering custom projects on time, within budget and tailored to your specific needs regardless of scope or location. With our own in-house capital, debt relationships and development processes in place to better serve our clients, we work quickly to complete projects—including build-to-suit, build-to-own, design-build construction, speculative development and fee development.
The net result: We streamline the development process and skillfully manage every aspect of a commercial property, including:
“Though a lot of companies preach about a collaborative and transparent approach, it is rare to see it truly implemented to the degree Mohr does. It is refreshing to find a partner that understands you can build great relationships and projects through treating everyone fairly and professionally. For this, I thank you!”
Schwob Building Company
For more on our development services, view our brochure.
If you’d like to learn more about Mohr Capital and how we can assist with your various development needs, please contact Gary Horn.
We’ve covered retail and development, but one area of expertise we have yet to talk about in detail is acquisitions. Learn more about our approach and how it differentiates Mohr Capital from other commercial real estate firms as well as special insights into the acquisition of MetCenter – our largest acquisition to date.
In the past, sometimes the only way to land a deal would be through luck or personal relationships, especially with local brokers or contacts. Times have changed, and commercial real estate isn’t a regional game anymore. The process of acquiring a property has become increasingly competitive due to advancements in technology, communications tools and readily available resources in recent years, and the Mohr Capital team knows how to stay a step ahead of the competition. Speed, efficiency and trust are three key aspects of any successful acquisition. Our single source of capital and family office structure allows us to be transparent and move as soon as a deal is sourced.
Moving quickly while utilizing expertise and single sourced capital have proven successful for our firm, and these tactics land us impressive acquisitions such as MetCenter – a Class A 404,800-square-foot office and industrial portfolio in the southeastern section of Austin, Texas, acquired from Zydeco Development. Closing a deal this size was a big win for Mohr Capital and we’re excited to have such a diverse tenant roster at the MetCenter property.
With above-market parking ratios, easy access to highways and the property’s proximity to Austin-Bergstrom International Airport, the location is ideal for its esteemed tenants including Amazon.com, Inc., Uber Advanced Technologies Group and others in the technology, healthcare and government space. Seeing as Austin is ranked first in 2020 commercial real estate prospects, and the property falling under the office and industrial sectors, the deal came at the right time and was right in our wheelhouse. We were able to add significant value due to the property’s current market rate and our knowledge of Austin’s commercial real estate market trends.
Rodrigo Godoi oversees the entire lifecycle of an investment and takes a hands-on approach from the concept phase of a project through its completion. In his role as managing director of investments, Rodrigo has actively built Mohr Capital’s investment portfolio by managing nationwide acquisitions and dispositions of office and industrial assets. While some days consist of prospecting and others are spent underwriting and analyzing, each day holds a new challenge. He takes pride in his ability to find deals that hold high market returns.
Rodrigo and the rest of the Mohr Capital team are looking forward to cultivating new, mutually beneficial and collaborative partnerships nationwide, as we constantly seek new acquisitions. If you are interested in learning more about Mohr Capital’s acquisition services, please contact Rodrigo at Rodrigo@MohrCap.com.
With development being a key area of focus for Mohr Capital, we’re highlighting this area of our business this month, as well as the leader of this sector, our Chief Investment Officer, Gary Horn, who has overseen our build-to-suit and speculative development platforms since 2008. Keep reading to learn more about Gary’s expertise, his take on current industry trends and to find out what sets us apart from the competition.
Like any other industry, commercial real estate is constantly changing, as are the needs of tenants. “Entitlement and compliance are two major changes we are currently seeing in development,” says Gary. “Being able to proactively address various municipal and building code requirements is critical.” However, no matter the changes in the development landscape, understanding the needs of the client and maintaining their trust remains both Mohr Capital’s and Gary’s top priority.
One key relationship that has withstood many changes in the industry is Mohr Capital’s relationship with Cooper Tires. As the tire company’s exclusive real estate provider for both leasehold transactions and development for the past 15 years, Mohr Capital has gained a wealth of knowledge and experience when it comes to tire manufacturers and their processes, which leads to proactive management of their real estate portfolio. In addition, weekly status meetings and follow-ups noting milestones and critical issues are necessary aspects of a successful partnership such as this. The insights Mohr Capital has gained partnering with Cooper Tires have contributed to other successful development projects, such as a storage and distribution facility currently underway in Indiana for GAF, the largest roofing and waterproofing manufacturer in North America.
Gary’s mantra has always been, “You’re never wrong to do the right thing,” which has been especially applicable to his work in real estate development. “Providing top notch customer service and meeting client needs have always been and will always be our top priorities at Mohr Capital,” says Gary. “If you are open, honest and diligent, you can always deliver a successful project for all parties.”
Mohr Capital is a trusted partner that can identify and procure the right space every time. With our roots on the tenant side of the business, we structure deals with significant benefits to the tenant, our customer, and are dedicated to delivering the highest quality projects.
Gary has overseen our build-to-suit and speculative development platforms since 2008 and handles every aspect from procurement to delivery, including vendor selection, entitlement, permitting, financing and project management. Having been in the real estate business for over 30 years, he is widely recognized for his knowledge of real estate development and knack for numbers. Regardless of size, every deal matters to Gary. He considers each deal he closes to be a part of his growing professional achievement.
Gary and the rest of the Mohr Capital team look forward to sharing how we can help your business grow and expand. If you’d like more information about our development services, please contact Gary today.
With extensive experience in office and industrial assets, we decided it was time to take Mohr Capital’s success to new heights. Our vision for this new segment of our business is to create a large, full-service retail platform focused on value-add development and investment. In order to achieve this goal, we felt it was necessary for Rob to grow his team and onboard new talent specializing in retail development opportunities.
As a company with a single source of flexible capital, we take a highly sophisticated approach to investment opportunities that allow us to create value, act quickly and deliver exceptional quality of service. Mohr Capital knows the importance of trust and what it takes to ensure everyone involved in a transaction is satisfied with the outcome when it comes to brokers and tenants alike.
With “retail apocalypse” splashed across every other headline in the news these days, it’s easy to believe that soon we’ll be living completely online when it comes to how we spend our money. While there’s no doubt e-commerce plays a big part in today’s world, certain brick-and-mortar retail segments are booming. Through Rob’s lead, Mohr Capital is capitalizing on those opportunities to create a mutually beneficial partnership with brokers, tenants and landlords.
“Many retailers are simplifying their processes as the result of e-commerce and downsizing to a more efficient prototype, which creates opportunity,” says Rob.
“For example, many Quick-Service Restaurant concepts are implementing a pickup window for app-based food delivery services to provide a cost-effective way to stay up to date and generate additional volume, while still providing the traditional café dining experience.” Mohr Capital is focusing its efforts on locations similar to these with recent closed deals, including a Texas Roadhouse in Ohio and a Wendy’s in the greater Phoenix area.
Mohr Capital’s retail investments & acquisitions director, Rob Solls, came to us with more than a decade of experience and a deep understanding of what makes tenants and retailers tick. He’s an in-house expert when it comes to value-creation and building mutually beneficial relationships for the company. Rob is a University of Texas at Austin alumni and, as an active member of in the International Council of Shopping Centers (ICSC), he’s passionate about the social, civic and economic impacts of real estate.
Rob and the rest of the Mohr Capital team are looking forward to the opportunity to collaborate and cultivate new, mutually beneficial partnerships nationwide. If you are interested in learning more about Mohr Capital’s services, please contact us today!