DALLAS - "If at first you don't succeed, try try again" is a familiar refrain, certainly to two of Dallas-Fort Worth's longest-running real estate companies. Now DalMac and Centre have agreed to a merger that will form a $200 million full-services company. The two have Texas-deep roots running some 40 years and sharing the same family name.
DalMac chairman and CEO Herbert McJunkin Jr. is teaming with Centre chairman and CEO Jack McJunkin Sr. to formalize a strategic alliance the two had started last February. The brothers will share the chairman of the board position for the combined company. A new management group, which includes a second generation of McJunkin sons heading up the merger, will run the operations of the companies. The formal name of the new entity has not been finalized.
The merger consolidates each firm's group of companies - DalMac Construction Co., DalMac Investments Corp., Centre Development Co and Centre Leasing and Management. The new entity will remain privately held operating as three separate construction, real estate and property management service providers. The merger is expected to close by the end of the year.
DalMac and Centre have developed an estimated 7,500 acres of prime office, retail, industrial and multifamily properties, along with 5 million sq. ft. of development and construction for build-to-suit facilities, and 60 million sq. ft. of general construction and more than 10 million sq. ft. of tenant improvements. Collectively the firms employ 295 associates serving Texas from offices in Dallas, Austin and Houston.
In our September 1 REIT Showcase supplement, we inadvertently misspelled the names of Mack-Cali Realty Corp. director William Mack and CEO Mitchell Hersh. Also, 80% of Mack-Cali's portfolio is based in the Northeast market, not west of the Mississippi. NREI regrets these errors.
In our special supplement on corporate real estate research, which appears elsewhere in this issue, we inadvertantly gave Steve Scruggs of Grubb & Ellis the wrong title. He is president of G&E's Corporate Services Group.