Dallas Market Center Takes on New Partner

The Dallas Market Center has taken on an equity partner. Orlando, Fla.–based real estate firm CNL Income Properties Inc. plans to invest about $71 million into the nearly 5 million-square-foot campus.

The impending agreement calls for CNL to assume an 80 percent share in the DMC’s main properties: the World Trade Center, the Dallas Trade Mart, the International Floral & Gift Center and the Market Hall. The WTC includes the new FashionCenterDallas, the largest venue for apparel wholesaling in the Southwestern United States.

The DMC, an affiliate of Dallas-based Crow Holdings, will continue to manage the properties as part of two master lease agreements associated with the deal. The first phase of the investment is expected to close in June.

Bill Winsor, DMC president and chief executive officer, said the partnership is aimed at creating new business synergies within the DMC campus. “This real estate transaction provides a strong equity partner and positively positions us for additional opportunities to create improved markets, trade events and temporary shows,” he said in a statement.

“We have confidence in the management team’s decades of experience and plan for Dallas Market Center to continue doing what it does best: manage a successful wholesale mart,” said CNL President R. Byron Carlock. “The market center’s continuing leadership position in lighting, floral, gift, home and fashion is our shared goal.”

Aligning with the DMC is somewhat off-track for CNL, known for its involvement in resort properties. Last month, the company struck a joint venture with resort real estate giant Intrawest Corp. of Vancouver, British Columbia, to take over five retail properties—in Mammoth Mountain, Calif.; Copper Mountain, Colo.; Stratton, Vt.; Baytowne Wharf, Fla.; and Snowshoe Mountain, W.Va.—for more than $80 million.

DMC officials are also taking over an entity by launching their own gift and home accessories shows in January 2006. The new venture will terminate a long-term agreement with George Little Management (GLM), which has operated gift shows at the DMC for the past eight years.

“GLM has been a vital partner with Dallas Market Center as the manager of the gift and home temporary sections, providing their resources and expertise to this important part of our business,” said Cindy Morris, chief operating officer of the DMC. “We have worked together successfully for eight years and will continue our partnership through 2005 to ensure a positive transition to the new shows.”

The new gift and home temporary shows will take place each January, March, June and September. DMC Executive Vice President Georgia Davis will lead an in-house team that will oversee leasing and management responsibilities for the shows.

—Robert McAllister