A look at the group set to purchase Cove land
COPPERAS COVE — The Copperas Cove Economic Development Corporation and Copperas Cove Industrial Foundation are in the process of selling the land known as the “Phase II” portion of the 5 Hills Shopping Center to Endeavor Real Estate Group.
The land, which totals 51 acres, includes Gold’s Gym and extends to Old Copperas Cove Road. Retailers interested in becoming tenants on the land include Ross, rue21, Burke’s Outlet, Dots Fashion, Rack Room Shoes and Bealls. The land, which is south of the H-E-B Plus! in Cove, will be sold for $1.14 million, officials said, and would not include any buildings.
Based in Austin, Endeavor Real Estate Group, also known as C-Cove 90 Partners, has grown into the largest full-service commercial real estate company in Central and South Texas, according to the company’s website.
The company, consisting of more than 100 staff members, states it delivers specialized expertise in project leasing, tenant representation, property management, sales, and development.
Kirk Rudy has been the CEO and owner of Endeavor since March 1999, according to the Endeavor website, which lists its leadership team. That team also consists of several managing principals: Jamil Alam, Chris Ellis, Chad Marsh, Bryce Miller, Jeff Newberg, Charlie Northington, Billy Osherow, Andy Pastor, David Roberts, and David Roche. The principal of property management for the leadership team is Becky Heston.
Endeavor offers extensive, market-specific knowledge covering retail, office, industrial, mixed-use, and multi-family projects.
In a 2014 report, the Austin Business Journal described Endeavor as “a major player on Austin’s real estate scene since it was founded in 1999 by five executives formerly with Trammell Crow Co. The company has built large offices, retail centers and mixed-use projects including The Domain and Southpark Meadows.”
City Manager Andrea Gardner spoke with the Herald, providing more information on the land purchase agreement.
“The CCEDC and Copperas Cove Industrial Foundation are selling the land known as Phase II (5 Hills Shopping Center) to C-Cove 90 Partners (Endeavor),” said City Manager Andrea Gardner. “Phase I land was also purchased by C-Cove 90 Partners in 2011. C-Cove 90 constructed the buildings and facilities that exist on the land today, not the city or CCEDC. The land cost is $1.76 million for Phase I and $1.14 million for Phase II, and I do not have a cost per square foot (for the land).”
Phase I of the shopping center, totaling about 75.6 acres, was developed to include the H-E-B and other commercial establishments. Do the math on the EDC’s selling price of Phase 1, and it comes out to $1.87 per square foot.
The cost for the Phase II land — based on the size and selling price — comes out to $1.95 per square foot.
David Barr, owner of Killeen-based David Barr Properties, spoke with the Herald to explain the breakdown of square footage cost in Killeen versus in Copperas Cove.
“You’re comparing apples to oranges. There’s not a set price, prices vary tremendously on location and size of property,” Barr said. “Properties in Killeen vary from $6 to $28 per square foot. In Cove it’s not as high as in Killeen, where cost is about $8 per square foot.”
When the Herald asked Barr if the land cost for the 5 Hills Shopping Center is normal price for land in Cove, he reiterated that there is not a general price for land.
“What the (Cove) EDC might sell land for is not what an individual might sell land for. The task of the EDC is to attract business for job creation. We have sold land below market to get those jobs or to contribute to infrastructure.”
Barr described what attracts businesses to land purchases.
“Developers buy land, develop it, and lease or sell it to anchor tenants. They are looking to buy land that adjoins a power center such as H-E-B in Copperas Cove or Target in Harker Heights as a main anchor with secondary tenants and/or owners. That attracts your other tenants that want to feed off the major tenant,” Barr said.