2015 MPAC T REPORT
OUR PURPOSE IS TO CREATE ENDURING INVESTMENTS AND REMARKABLE PLACES THAT ENRICH PEOPLE'S LIVES.
A MESSAGE TO OUR STAKEHOLDERS
WE ARE GRATEFUL TO THE EXTRAORDINARY PEOPLE WHO INVEST THEIR TIME, TALENTS AND TREASURE WITH US. THIS MPACT REPORT CELEBRATES THEIR ACCOMPLISHMENTS, AND WE THANK THEM. AS WE LOOK BACK ON 2015 AND AHEAD TO 2016, WE SEE TRANSFORMATIONAL OPPORTUNITIES UNFOLDING. WE ARE ENTERING NEW MARKETS, DIVERSIFYING, INVESTING IN OUR LEADERSHIP DEVELOPMENT, AND THOUGHTFULLY ADDING NEW TEAM MEMBERS. As we continue to cultivate and apply Midway’s disciplined, strategic investment approach, we remember our responsibility to challenge ourselves and continue to innovate. We can never be satisfied to rest on yesterday’s success, because we are called to serve a higher purpose. Some might think that weighing every decision against values such as integrity and generosity is fine for idealists and do-gooders, but not investors and developers. We have found no disconnect between doing what is right and making smart, strategic business decisions. In fact, we believe they are intrinsically one and the same. Far from making us less competitive, staying true to our purpose and values has helped Midway steer a course that avoids the pitfalls of commoditization, volatility and obsolescence in order to create transformational real estate investments. When we encounter headwinds, we recall the words of Henry Ford who said, “remember, the airplane takes off against the wind, not with it.” We are excited to continue this journey with you.
TRANSFORMED FROM QUIET BACKWATER TO
FORCE OF NATURE
AT THE INTERSECTION OF HOUSTON’S MOST TRAVELED LIGHT RAIL LINE AND THE CITY’S NEWLY REDESIGNED SIGNATURE RETAIL CORRIDOR, GREENSTREET DELIVERS A PREMIER MIX OF NATIONALLY-RECOGNIZED RESTAURANTS, RETAILERS AND ENTERTAINMENT VENUES. A CONTEMPORARY, ENERGIZING OFFICE ENVIRONMENT IN GREENSTREET POSITIONS COMPANIES ON THE DOORSTEP OF THREE PROFESSIONAL SPORTING ARENAS, DISCOVERY GREEN PARK AND ALL THE AMENITIES THAT DOWNTOWN HAS TO OFFER.
CITYCENTRE THREE + FOUR REACHED FULL OCCUPANCY QUICKLY. DISCERNING OFFICE TENANTS EAGERLY LEASED UP 240,000 SQUARE FEET OF CLASS-A, SILVER LEED SPACE ABOVE GROUND-FLOOR FINE DINING AND ADJACENT TO HOTEL SORELLA, THE HOUSTON HOTEL PROPERTY RATED HIGHEST BY CONDÉ NAST. THE NEWEST ADDITION TO CITYCENTRE’S COVETED OFFICE COLLECTION NEARED COMPLETION AT THE END OF 2015, WITH CITYCENTRE FIVE RISING AT THE DISTRICT’S NORTHERN GATEWAY.
TRANSFORMED FROM LOW DENSIT Y TO
TRANSFORMED FROM OUT-OF-DATE TO
PRIME REAL ESTATE
FROM 1929 TO 1963, THIS ART DECO TREASURE WAS HOUSTONâ€™S TALLEST BUILDING. READYING NOW FOR ITS 2016 REINTRODUCTION, 712 MAIN AND 708 MAIN WILL MEET SURGING DEMAND FOR DOWNTOWN REDEVELOPMENT. HERE AND ACROSS THE COUNTRY, A NEW GENERATION OF COMPANY FOUNDERS HAS REDISCOVERED THE CONTEMPORARY APPEAL OF HISTORIC PROPERTIES.
CITYCENTRE'S STRONG BRAND AND PROVEN PERFORMANCE CREATE POWERFUL RIPPLE EFFECTS. WHEN NEARBY DEVELOPMENTS OUTSIDE THE PROJECT MARKET THEIR PROPERTIES AS “AT CITYCENTRE” AND SURROUNDING NEIGHBORHOODS’ HOME LISTINGS EXTOLL THEIR PROXIMITY, THE REGIONAL DESTINATION HAS CONFIRMED ITS HALO EFFECT.
TRANSFORMED FROM FORGOTTEN CORNER TO
TRANSFORMED FROM CONCRETE JUNGLE TO
AN UNDERAPPRECIATED URBAN PARK IN THE SWEET SPOT BETWEEN WEST UNIVERSITY AND RIVER OAKS. LESS THAN THREE MILES TO THE TEXAS MEDICAL CENTER AND LESS THAN FIVE TO DOWNTOWN, KIRBY GROVE WAS A TREASURE HIDDEN IN PLAIN SIGHT, WAITING FOR THE RIGHT PUBLIC + PRIVATE PARTNERSHIP TO TRANSFORM IT INTO THE NEXT GREAT URBAN DESTINATION.
KEY INVESTMENT STAKEHOLDERS [TEAM] [COMMUNITY] [CAPITAL] [PROFESSIONAL PARTNERS] [CUSTOMERS]
Creating transformational mixed-
Admittedly, our team interviewing
use environments requires
and MBark onboarding process are
transformational teams. This happens
time-intensive, but investing time
when all of the team members are
up front pays added benefits of
not only working toward a shared
instilling Midwayâ€™s unique company
purpose, but they also are investing
culture, purpose and values from the
their time and energy to produce a
The James A. Moran Legacy Award is an annual honor given by Midway to an individual or organization that exemplifies a lifelong commitment to our core values.
greater good. We are convinced that doing the right thing for each of our
When you build the right internal team,
stakeholders is the only way to ensure
they work seamlessly to improve
the best outcome for all of them.
the community, create relationships of accountability based on solid
This year, Midway invested in
performance, source expertise
building our bench strength. We
from the best professional partners,
welcomed new capital partners and
and ultimately, deliver remarkable
broke ground in College Station,
experiences that enrich peopleâ€™s lives.
a community that feels like home to most of us, yet is a new market
We forged significant new
expansion for Midway. We enlarged
relationships in 2015 that will bear fruit
our team of experienced professionals
for decades to come. But we never
and advanced the next Class of 2015
forgot our beginnings and continued
MidwayU graduates who successfully
to honor those who set the foundation
completed a comprehensive training
for everything that we have become.
course taught by senior leaders.
MORAN LEGACY AWARD
Jones Lang LaSalle Capital Markets UHY Advisors
Redevelopment Authority Investment Management
2015 ADVISORY BOARD Adam Finn
D. Fort Flowers, Jr.
Richard Haney Barksdale Hortenstine Christopher M. Job Ron Nixon
OUR INVESTMENT STRATEGY AND APPROACH
ACTIONS FOLLOW BELIEFS.
The pace of change continues to accelerate. Consumers access a world of
Our values, and the remarkable
choices and satisfy their whims on demand, instantly. The mobility of capital
people who share our
sends some on a race to the bottom, others in a flight to quality. Riding in the
values, are the foundation
calm eye of the storm of market volatility is a very specific type of asset, which
upon which Midway is built.
meets the criteria to be transformational.
Integrity. Passion. Adaptability. Quality. Initiative. Teamwork.
Midway creates enduring investments through a clear investment process,
focused investment strategies and an integrated investment team. We specifically seek to invest in and develop assets that are uniquely positioned to maximize demographic productivity, scarcity, differentiation and connectivity. Our Strategy. Midway invests in three types of assetsâ€”develop-to-core, value-add, and covered land. We take a disciplined approach to evaluate each opportunity. Our Approach. Before undertaking a new endeavor, Midway applies this assessment to determine whether an opportunity meets the criteria to be transformational.
GENERATIONAL REAL ESTATE
Q. WHAT TRANSFORMS AN
Q. WHAT MAKES THE
Q. WHAT CATAPULTS A
BUSINESS FORWARD IN
INTO AN UNFORGETTABLE
BEING TRANSACTIONAL AND
GOOD TIMES AND SUSTAINS
IT THROUGH TOUGH TIMES?
A. The way it makes people feel.
A. Steadfast focus on the impact our
A. Serving a purpose that engages,
In a sea of competition, emotional
decisions make on people's lives
inspires and energizes every
attachment to a place creates loyal
avoids the pitfalls of delivering yet
stakeholder: team, partners, capital,
customers who are with you for the
another commodity or suffering the
community and customers.
whiplash of volatility.
NEW TENANTS SIGNED ACROSS PROJECTS
OF COMMUNIT Y SPACE DEVELOPED AND UNDERWAY
MIDWAY BY THE
NUMBERS OUTPERFORMANCE OF THE MARKET BY HOTEL SORELLA
GROW TH OF NEW EMPLOYEES
versus their comp set
1,400,000 sf of office space within mixed use environments
CAPITAL GROW TH FROM 2014 TO 2015
MIXED USE PREMIUMS
UP TO 10%
UP TO 20%
8 MODES OF TRANSPORTATION TO AND FROM OUR VARIOUS PROJECTS
New Midway offices in 2015
1,335 Multi-family units managed and underway
Events managed across all projects
AVERAGE NUMBER OF PROJECT USES
worth of total volunteer time given to employees to give back to their communities
(THATâ€™S 12 DAYS PER EMPLOYEE)
28,000 PEOPLE/DAY COMING TO OUR PROJECTS ON AVERAGE
“GREENSTREET IS WELL-POSITIONED TO CAPITALIZE ON THE EVOLUTION OF DOWNTOWN HOUSTON WITH THE SUBSTANTIAL NEW RESIDENTIAL AND HOTEL DEVELOPMENT.” JANE PAGE, CEO, LIONSTONE INVESTMENTS IN REALTY NEWS REPORT, OCT. 4, 2015
G R E E N S TRE E T + H OTE L A LE S SA N DRA With Hotel Alessandra, Valencia Group and Midway take hospitality to a higher level in Downtown's shopping and entertainment district. Construction in 2015 revealed a tantalizing view of the 20-story, 223-room luxury hotel rising above the entertainment, retail, dining and creative office environment of GreenStreet.
K I R B Y G ROVE Midway's thoughtful integration of Class-A office space, multifamily community, retail and restaurant components have transformed an 11-acre, mixed-use environment in the Upper Kirby District. In 2015, office tenants began moving into One Grove Street, and the Avenue Grove multifamily community neared completion. In the coming year, acclaimed chefdriven restaurant concepts, residents living in the community, and the parkâ€™s activation will heighten the projectâ€™s momentum.
“IN ADDITION TO THE REPUTATION OF MIDWAY, BOYARMILLER CHOSE TO OFFICE AT ONE GROVE STREET BECAUSE THE LOCATION WAS CONVENIENT TO THE HOUSTON BUSINESS COMMUNITY AND WE VALUE OUR CLIENTS’ TIME. THE KIRBY GROVE COMPLEX ALSO INSPIRES CREATIVITY, SO WE CAN WORK HARD TO ACHIEVE PRACTICAL BUSINESS SOLUTIONS FOR OUR CLIENTS.” CHRIS HANSLIK, CHAIRMAN, BOYARMILLER
"TEXAS HAS A LONG TRADITION OF CRAFTSMANSHIP AND ARTISTRY, AND HOUSTON IS HOME TO A BURGEONING CREATIVE SCENE. AT HOUSTON'S CITYCENTRE WE HAVE THE OPPORTUNITY TO CONNECT TEXAS ARTISANS TO OUR COMMUNITY OF 500 LOCAL DESIGNERS, ARTISTS AND MAKERS.” JIM BRETT, PRESIDENT, WEST ELM “MIDWAY HAS BEEN A TRUE PARTNER IN HELPING UNIVERSITY LANDS ESTABLISH OUR NEW BASE OF OPERATIONS. WE BELIEVE THIS ATMOSPHERE WILL FOSTER CREATIVITY, INNOVATION AND COLLABORATION.” MARK HOUSER, CEO, UNIVERSITY LANDS, THE UNIVERSITY OF TEXAS SYSTEM
C I T YC E N TRE Opened in 2009 on the site of an obsolete indoor mall, the 2 million square-foot, mixeduse CITYCENTRE capped off 2015 with six new retail leases, including top national brands west elm, H&M and Madewell. With more than 98 percent of the existing office space occupied, CITYCENTREâ€™s fifth office building neared completion. The Urban Land Institute, a global educational research institute dedicated to providing leadership in the responsible use of land, published a case study on CITYCENTRE, an example of best practices in mixed-use development.
CENTURY SQUARE The first phase of the 60-acre mixed-use regional destination is rising in Bryan-College Station, Texas. Century Square debuted two new, full-service hospitality concepts, The George and Cavalry Court, and announced a dynamic mix of regional eateries and lifestyle services. In Q1 2016, additional signature dining, shopping and desirable services traditionally not seen in the area will be announced. Upscale apartment homes at 100 Park and Class-A office space complement attractive outdoor amenities and connection to Texas A&M University walking and bike paths. Enticing gathering places warmly welcome residents, office tenants, shoppers and guests.
“WE BELIEVE THIS PROJECT WILL IGNITE A FLURRY OF ECONOMIC ACTIVITY AND NUMEROUS EMPLOYMENT OPPORTUNITIES BENEFITING THE COMMUNITY AS A WHOLE. WE APPLAUD MIDWAY FOR BRINGING A PROJECT OF THIS MAGNITUDE FOR OUR CITIZENS TO ENJOY.” NANCY BERRY, MAYOR, COLLEGE STATION
M E MORI A L G RE E N Memorial Green is transforming an underutilized property on Memorial Drive into a place of tranquil urbanity. In 2015, infrastructure construction commenced in preparation for a trio of respected homebuilders to create upscale residences encircling the central park. Brisk retail and office leasing activity have confirmed the strong appeal of the location and its thoughtful design. Memorial Green marries luxury living with boutique office, shops, eateries and services within a custombuilt community.
£ PORTFOLIO [owned, managed and underway] 55 + 100 WAUGH 708 + 712 MAIN Braeburn Village Century Square 100 Park Cavalry Court The George CITYCENTRE CITYCENTRE ONE CITYCENTRE TWO CITYCENTRE THREE CITYCENTRE FOUR CITYCENTRE FIVE CITYCENTRE TOWERS Four Points by Sheraton Hotel Sorella GreenStreet Hotel Alessandra Kings Harbor Kirby Grove Avenue Grove One Grove Street Memorial Green
WHERE ARE WE GOING NEX T Four new developments ushered in 2016, each of them creating potential for transformational investment. In September, we announced pre-leasing of One Parkside, an office project at I-10 and the 610 loop, one of Houston’s busiest interchanges with daily exposure to nearly half a million cars. The 13-story tower with 225,000 square feet of Class-A office space, 10 floors of integrated garage parking and 2,000 square feet of ground-floor retail perfect for a café is the first phase of development. We finalized master planning the first phase of an integrated live, work and play environment in one of the region’s most desirable in-fill locations. Close to Downtown, Memorial Park and Neartown, this unique property affords the rare opportunity to reinvent a community by delivering a healthy lifestyle built around local fresh food, outdoor activity and signature green space. Surrounded by what the Houston Chronicle once named “the most blighted block in Downtown Houston,” landmark properties at 712 and 708 Main were jewels in a tarnished setting. Now at the epicenter of an epic turnaround, they marry historic renovations with adaptive new uses. In 2016 the property debuts anew, to combine timeless appeal with contemporary sensibility and unparalleled access to two rail lines and downtown amenities.
Memorial Heights Villa del Prado
We closed 2015 by forging a new joint venture which brings lasting and farranging ripple effects, including stewardship of an extraordinary mixed-use environment on Houston’s historic riverfront. The market-defining project requires us to carefully and thoughtfully curate an exceptional mix of uses, enlivening the property while it evolves over time.
Since its founding in 1968, Midway has grown and evolved into a fullservice real estate development and investment firm, with wideranging expertise in design, finance, execution, marketing and asset management. Our team is responsible for more than 45 million square feet of projects completed or underway, and we have successfully financed more than $3 billion of commercial and residential real estate development projects. Much has changed over the years, but timeless values do not. With the mindset of a long-term owner, we have a deep appreciation for the importance of stewardship. What has been entrusted to us is only ours to nurture, cultivate and pass on to future generations better than we found it.
MIDWAY FOUNDATION In 2015, Midway Foundation surpassed $2.6 million in total giving to organizations that support health, education and the underprivileged. Midway also encourages personal involvement in volunteer activities by giving employees one workday per month to volunteer. As our team grew to almost 100 people by the end of 2015, we looked forward to providing a cumulative total exceeding three years of volunteer support to worthwhile non-profit organizations. In 2010, Midway Advanced Products developed b4 ® hand sanitizer to change lives through charitable giving. b4 ® is committed to giving 50 percent of the profits to children-focused causes through the sale of its unique line of wellness products.
"Philanthropy is not just what we do, it's who we are. Midway’s purpose of enriching people’s lives isn’t just a company slogan, it’s who they are. By supporting Brighter Bites, Midway helps us reach children and families underserved minority communities where we build healthy habits that become healthy lifestyles.” Lisa Helfman, Director, Real Estate, H-E-B Grocery Company, and Founder, Brighter Bites
MANY THANKS A SPECIAL THANK YOU TO OUR PARTNERS AND CLIENTS, AND MOST IMPORTANTLY, TO OUR TEAM MEMBERS, FOR THEIR DEDICATION AND LEADERSHIP IN CREATING REMARKABLE PLACES THAT ENRICH PEOPLE’S LIVES.
P_33 PARTNERS & CLIENTS (PARTIAL LIST)
Alaska Permanent Fund Corporation
Amay Inamdar - AAI Affordable Housing
Advisors Cathexis Holdings City of Houston Cornerbrook Development Dallas Police & Fire Pension System-
Harrison Street Real Estate Capital LLC
Housing Capital JPMorgan Chase L&B Realty Advisors Landover Development LaSalle Investment Management Lionstone Investments Medvest Incorporated (Methodist) Land
Municipal Employeesâ€™ Retirement System (of Michigan)
RGA Reinsurance Company
A&M University System
Upper Kirby Redevelopment Authority
AIDS Foundation Houston, Inc.
Heart Association Ava's Wish
Boys and Girls Club
Buffalo Bayou Partnership
12th Man American
Association for the Advancement of Mexican Americans
Scouts of America Bites
2015 MIDWAY FOUNDATION RECIPIENTS (PARTIAL LIST) Donations
Brazos Christian School
Casa de Esperanza
Child Advocates, Inc.
Camp Ozark Foundation, Inc.
Canstruction Houston, Inc.
Big Brothers Big Sisters
Children at Heart Foundation
College Hills PTO Covenant House Texas FAMM Freedom Place George Bush Foundation
Goodwill Industries of Houston
Halo House Foundation Foundation
His Grace Foundation
Houston Food Bank
Greater Houston Partnership, Inc. Houston Community College
Jessieville Fellowship Club
Jimmy Pappas Sporting Clay Shoot
Houston Zoo, Inc.
Lavaca Assistance Ministry Body
Memorial Hermann Foundation
New Hope Housing
Palmer Home for Children
Nepal Earthquake Relief
of Architecture Rice University Robert Garner Firefighters Foundation SEARCH Sight into Sound Texas House
Soles for Hope
Souper Bowl of Caring
Spring Branch Education Foundation St. Jude Children's Hospital, Inc.
& Lymphoma Society
Star of Hope Mission
Susan G. Komen for the Cure
The Center for Opportunity Urbanism
Special Olympics Stoney Creek
Texas A&M Foundation
The Harbor Light Choir
The Methodist Hospital Foundation
West Houston Association
Young Texans Against Cancer
St. James The Center