News Brief 12-6-11 KOTEL INVESTMENT ACQUIRES INDUSTRIALFACILITY IN AUSTIN. AUSTIN — ABKOT Properties, a subsidiary of San Antonio-based Kotel Investment, has acquired a 15,900-square-foot industrial facility, located at 13802 Turbine Dr. in Austin, for an undisclosed price. The property is currently occupied by CenTex Door & Frame. Kotel was self-represented in the transaction, and Mark Minchew of RE/MAX's Austin office represented the seller. |
Investment group is turning tenants into building owners Premium content from San Antonio Business Journal - by Tricia Lynn Silva
Date: Friday, January 14, 2011, 5:00am CST
A firm bullish on the investment opportunities in San Antonio’s commercial real estate market is now finding its own holdings to be in demand.
During the last quarter of 2010, Kotel Investments Inc. closed on the sale of two industrial buildings it owns in the Alamo City.
In both cases, the buyers were companies that had previously been tenants of the buildings.
On the city’s North Central Side, Kotel Investments sold a 10,000-square-foot building at 8902 Broadway to Progressive Solutions.
The deal closed in October, according to Rami Kotel, who co-founded Kotel Investments with his brother Jeff. Their firm is dually headquartered in San Antonio and Woodland Hills, Calif.
Progressive Solutions had been a tenant in the Broadway building for the last four years,Rami Kotel says. The company works with general contractors to design and manufacture specialized building products — like shade structures and historic building replications — that may not fall within the standard scope of a project.
On the city’s South Side, Koru Steel LLC has purchased a 16,000-square-foot building at 2934 Pan Am Expressway. That deal closed last month, Kotel says.
The San Antonio office marks Koru Steel’s first foray into the U.S. market, says Jaime Salazar Ortiz, who is the manager of the local office. Koru Steel is a distributor of the steel used in commercial construction projects — including fences, windows and door frames, and roof suspensions. Headquartered in Mexico, Koru Steel was started by Guillen’s father-in-law, Ubaldo Ortiz, back in the 1980s.
San Antonio, says Guillen, was the ideal starting point for Koru’s U.S. operations. It is a growing city. And in terms of logistics, San Antonio is prime spot from which Koru Steel can serve clients throughout the country, he adds.
As for the decision to buy the Pan Am Building, Guillen says that the company was looking to make a long-term investment in San Antonio.
For Kotel Investments, the recent building sales are representative of the good story that San Antonio has to tell, says Rami Kotel, referring to various media coverage of late that have highlighted the Alamo City’s strength — including its place on Forbes’ list of cities that are best surviving the economic downturn.
To date, Kotel Investments owns about 300,000 square feet of industrial space between San Antonio and Austin. And even as the firm works to bulk up its portfolio, Rami Kotel also expects that there will be more opportunities in the near future for the firm to turn more of its tenants into property owners.
Friday, January 22, 2010
Real Estate Roundup
Investment duo is banking on San Antonio’s vibrant real estate market
San Antonio Business Journal - by Tricia Lynn Silva
Brothers Rami and Jeff Kotel are out to spread the good news about San Antonio.
And to infuse some more capital into the city’s real estate market.
Jeff and Rami are the founders of Kotel Investments Inc. — an investment firm that is dually headquartered in San Antonio and Woodland Hills, Calif.
To date, the brothers own about 300,000 square feet of industrial space, both here and in the city of Austin, says Rami Kotel. And they are looking for more.
It is the role of Kotel Investments to bring investors — primarily California-based entities — to the deal-making table. Each property in the Kotel portfolio is owned via a joint venture that includes the Kotel brothers.
The challenge right now is finding investment-grade properties in the Alamo and Capital cities, because current owners of those properties don’t want to let go of them absent a premium price.
“It’s slim pickings,” says Rami Kotel.
Owners are holding fast to their asking prices, which has resulted in a standstill between potential buyers and sellers.
“We are searching for investments,” adds Jeff Kotel. “We have to really, really search hard.”
But the work, the brothers say, is worth it — to have a stake in well-performing cities like San Antonio. “Everywhere else, the market is going against (real estate investors),” Rami Kotel says. “People are moving to Texas, and San Antonio especially, from every other state.”
Destination: S.A.
The bullish outlook that the Kotels have for San Antonio is a trait that runs strong in their family — including in their uncle, local developer Efraim Abramoff.
It is Abramoff who convinced Jeff and Rami Kotel that San Antonio is a good market in which to invest. Abramoff is the president of development/investment firm Ariel Texas Star Inc. Adds Rami Kotel: “We took his advice, and we have been focusing on San Antonio ever since.”
In fact, the brothers continue to work with their uncle on some local projects — including retail center the Shops at Churchill Estates. The owner of the retail center is EA Partners, an entity that includes Jeff and Rami Kotel and Abramoff.
To date, the Shops at Churchill is 80 percent leased. That figure includes a trio of new leases that were recently signed for tenants Lizzy’s Gifts & Bridal; home-decor business Gracious Living; and Blend, a new arrival in San Antonio that specializes in smoothies and nutritional supplements.
Rami Kotel expects that the Shops will be 100-percent leased by this summer.
The challenge is creating the right tenant mix.
Adds Rami: “We’re not looking at the next 12 months, we’re looking three to five years into the future.”
In the meantime, the brothers will continue to spread the word about two of the strongest cities on the real estate landscape today .
Says Rami Kotel: “Our job is to bring investors (from California) to San Antonio and Austin.”
Joining forces
The Schertz and the Randolph Metrocom chambers of commerce are teaming up to get the word out about what the communities they represent have to offer area business owners.
The 2010 Business Expo will be held on Feb. 23 at the Schertz Civic Center.
The event marks the first time in three years that Schertz has collaborated on such an event with neighboring cities in the Metrocom, notes Maggie Titterington. Titterington is the owner of A Moment in Time, which specializes in weddings and special events planning and videography, as well as the event organizer for the Randolph Metrocom Chamber.
There are presently nine cities that comprises the Randolph Metrocom. These cities are located in a 70-square-mile triangle along the Interstate Highway 35 San Antonio/Austin corridor, on the far Northeast side.
Schertz split off from the organization three years ago to set up its own chamber — to better focus on the myriad of business opportunities coming to fruition in the city, Titterington says. Since then, Schertz and the Randolph Metrocom have held separate Business Expos. At least until now.
From an economic point of view, the joint Expo makes a lot of sense, Titterington says. The two organizations can pool their resources behind one event that will highlight what all of these cities along the Northeast Side have to offer. And there is the likelihood of a bigger turnout — versus previous years when the two Expos were held within weeks of each other.
Economic development and city officials from Schertz, Cibolo, Converse, Live Oak and Universal City will be on hand at the event — along with area businesses, community organizations and others looking to do business in these cities.
As important as the combined effort of the two chambers is the combined message that both organizations are about “standing up for small and large businesses,” says Titterington, adding that this message is crucial in these trying economic times. “In order to succeed in a recession, we need to all band together. ... It’s the businesses themselves that will reap the rewards.”
TRICIA LYNN SILVA’s Real Estate Roundup column appears weekly. Silva can be reached via e-mail at tsilva@bizjournals.com
Ariel Texas Star bringing local flavor to its latest endeavor
San Antonio Business Journal - by Tricia Lynn Silva
Of the 33,131 square feet of space originally up for grabs in the Shops at Churchill Estates, almost 26,000 square feet is already preleased, according to Efraim Abramoff, president of the development/investment firm Ariel Texas Star Inc.
And talks continue with tenants to finish out leasing space in the development, he adds.
"With the combination of tenants we have now, almost anything will work there," adds Rami Kotel, Abramoff's nephew and the head of promotions for Ariel Texas Star -- the developer and general contractor for the project.
The Shops as Churchill is part of a larger, mixed-use development by Ariel Texas Star -- called the Huebner Town Center. In all, the Town Center is expected to span 13 acres at the southeast corner of Huebner Road and Churchill Estates Boulevard.
Operations signed up for the Shops at Churchill include Christian Treasures, Fitness 19 and Quilters Point. The ventures will occupy 2,675, 6,500 and 7,500 square feet, respectively.
Fitness 19 is a new health club making its debut in San Antonio, courtesy of Ariel Texas Star's development. The company bills itself as a mid-sized facility geared toward the neighborhoods surrounding its clubs. The chain offers month-to-month memberships.
A good neighbor
Speaking of new concepts, locally based Centofanti Corp. is also bringing a new eatery to the Shops at Churchill: Luciano Neighborhood Pizzeria. The restaurant will boast quality food at a good price, says co-founder Luciano Centofanti.
Luciano Neighborhood Pizzeria will feature a rustic theme, including lots of ceramics from Italy, Centofanti adds. The restaurant will also be decked out with displays showing off the firm's bakery, salads and deli selections.
Centofanti's food has become a noted staple at several malls, including local retail centers North Star, Rivercenter and Ingram Park -- thanks to concepts such as Ristorante Luciano, La Villa Pizza and Cento & Fanti Brick Oven Pizzeria & Bakery.
An office project in North Central San Antonio will soon have some retail company. Local developer Efraim Abramoff says construction will begin next month on the Shops at Churchill Estates. The 33,134-square-foot retail center will be located at the southeast corner of Huebner Road and Churchill Estates Boulevard.
Shell spaces should be ready for tenant finish-out by next February, says Abramoff, president of the development/investment firm Ariel Texas Star Inc.
The Shops at Churchill project will join an office development also in the works at Huebner and Churchill Estates. To date, the Huebner Town Center consists of 15,000 square-feet of space -- spread out over three garden offices that are 4,000, 5,000 and 6,000 square feet each. The buildings came online back at the end of 2005. To date, the Town Center is 66 percent leased; only the 5,000-square-foot building is still up for grabs, according to Abramoff.
The reception for the office project thus far has also prompted the developer to begin work on phase two of Huebner Town Center, which is a two-story office building encompassing 31,900 square feet. Construction will begin within the next 60 days, according to Robert Adams, in-house consultant for Ariel Texas Star. The shell spaces are to be ready by next June, he adds.
Ariel Texas Star is serving as both developer and general contractor on both the Town Center and the Shops.
And the work is far from over, notes Abramoff, who owns roughly 13 acres at the Huebner and Churchill Estates intersection. Over the next two years, he plans to bring a grand total of 200,000 square feet of commercial development to this intersection.
Ariel Texas Star's business shines on North Central Side
"We plan to stay light on our feet and adapt as we go along," he adds.
Abramoff has chosen wisely in terms of locations for his latest retail and office projects, says Ernest Brown, executive vice president and managing director for the local office of Grubb & Ellis Co. The project is in an area that boasts impressive demographics -- namely a lot of housing and some higher incomes.
The trick will be gauging just how much office and retail development the area needs. That Abramoff has been going forward with smaller bits of space at a time could work to his advantage, Brown continues.
"He does 15,000, 20,000 or 30,000 square feet and fills that in. (Abramoff) will be able to gauge when the market gets sated."
Friday, August 3, 2007
Ariel Texas Star bringing local flavor to its latest endeavor
San Antonio Business Journal - by Tricia Lynn Silva
A new retail center currently under construction in North Central San Antonio is enjoying a healthy leasing run.
Of the 33,131 square feet of space originally up for grabs in the Shops at Churchill Estates, almost 26,000 square feet is already preleased, according to Efraim Abramoff, president of the development/investment firm Ariel Texas Star Inc.
And talks continue with tenants to finish out leasing space in the development, he adds.
"With the combination of tenants we have now, almost anything will work there," adds Rami Kotel, Abramoff's nephew and the head of promotions for Ariel Texas Star -- the developer and general contractor for the project.
The Shops as Churchill is part of a larger, mixed-use development by Ariel Texas Star -- called the Huebner Town Center. In all, the Town Center is expected to span 13 acres at the southeast corner of Huebner Road and Churchill Estates Boulevard.
Operations signed up for the Shops at Churchill include Christian Treasures, Fitness 19 and Quilters Point. The ventures will occupy 2,675, 6,500 and 7,500 square feet, respectively.
Fitness 19 is a new health club making its debut in San Antonio, courtesy of Ariel Texas Star's development. The company bills itself as a mid-sized facility geared toward the neighborhoods surrounding its clubs. The chain offers month-to-month memberships.
A good neighbor
Speaking of new concepts, locally based Centofanti Corp. is also bringing a new eatery to the Shops at Churchill: Luciano Neighborhood Pizzeria. The restaurant will boast quality food at a good price, says co-founder Luciano Centofanti.
Luciano Neighborhood Pizzeria will feature a rustic theme, including lots of ceramics from Italy, Centofanti adds. The restaurant will also be decked out with displays showing off the firm's bakery, salads and deli selections.
Centofanti's food has become a noted staple at several malls, including local retail centers North Star, Rivercenter and Ingram Park -- thanks to concepts such as Ristorante Luciano, La Villa Pizza and Cento & Fanti Brick Oven Pizzeria & Bakery.
Luciano Neighborhood Pizzeria will lease 3,000 square feet in the Shops at Churchill. Another 1,500 square feet will be occupied by Centofanti Management.
The set-up, says Centofanti, will allow him to be very hands-on with the new concept. He adds that over the next two years, he would like to open five more pizzerias in the city.
Close to home
The Shops at Churchill is an ideal starting point for the neighborhood pizzeria concept, Centofanti says.
"There is plenty of housing, and there is a need for a restaurant of this type," he says.
The homes and the line-up of tenants at the shopping center also bodes well for a lot of foot traffic, adds Greg Entzenberger, manager and co-owner of Christian Treasures. He is making the move to the Shops at Churchill after 30 years at 3449 Fredericksburg Road on the city's Northwest Side.
"Back when we moved (to the Fredericksburg site), this was the North Side. But now it's time to move a little further north," says Entzenberger, who expects to have the new store up and running by Oct. 1.
Fruitful business
Helping Abramoff gauge the market are his two partners -- nephews Rami and Jeff Kotel.
Later this summer the brothers -- who have been silent partners of sorts in Ariel Texas Star in the past -- will be moving to San Antonio and taking on a larger role in the business.
"My partners have never been so pleasant to work with," says Abramoff of his nephews, whom he sees as the future of his business.
Both brothers will be in charge of managing and leasing Ariel Texas Star's projects, Abramoff adds. In addition, Rami Kotel will be head of promotions for the firm; Jeff Kotel will be handling the financial aspects of the business.
For the past several years, the Kotel brothers were involved in the Los Angeles real estate market. The move to San Antonio, they say, is a welcome one.
"We were drawn to the opportunity and to the people," says Rami Kotel, who describes the local business atmosphere as "comfortable."
"It's very calm," Jeff Kotel adds.
"San Antonio is more friendly. You can accomplish more in a shorter time," adds Abramoff. "I worked (in the L.A. real estate industry) for five years. Ethics are hard to find."