So Happy Together
The Weitzman Group and Cencor Realty Services celebrate 15 years of working together with 27 new retail projects in Texas.
Katie Foxworth

It’s like milk and cookies. Each can stand independently on its own, but they are so much better together. Each makes the other more attractive. The same might be said for Weitzman and Cencor. Texas-based The Weitzman Group and Cencor Realty Services each operate independently of one another, but they have been collaborating to offer complementary services to clients since 1989. In fact, 2004 marks the 15th anniversary of this unique, independent-yet-married union. Like cookies and milk, Weitzman and Cencor are an irresistibly great combination.

The roots of this great combination date back to 1961, when Herb Weitzman, a native Texan, first entered the commercial real estate profession. Even then, he recognized the abundant real estate opportunities offered by the state of Texas. Today, with some of the most active, dynamic retail markets in the nation, Texas continues to lead the U.S. in key areas such as population growth and job growth. Each market in which Weitzman and Cencor operate — Dallas, Fort Worth, Austin, Houston and San Antonio — is thriving. And Weitzman and Cencor operate more centers in these cities than any other company. In total, Weitzman now represents 27 million square feet of retail space throughout Texas, and Cencor manages 18 million square feet.

“We are successful because we learned the value of focusing on your market,” says Chairman and CEO Herb Weitzman, who founded The Weitzman Group and Cencor Realty Services in 1989 and always intended to maintain a regional focus. “We have been asked to expand into other markets, both outside Texas and to Texas’ middle markets. But our focus is one of our great strengths. The lesson here is: lay a strategy, lay a course, and stay with it.”

Another key strategy was Weitzman’s decision to do business using a “hybrid-company” approach. Usually the game plan plays out like this: Cencor develops and/or manages properties on behalf of joint ventures or limited partnerships, while Weitzman’s brokerage services handles leasing. In 2004, for example, Cencor is managing the development of 27 new retail projects in Texas, and Weitzman is in charge of leasing these projects. A key benefit of the model is market knowledge — because both companies are active in all aspects of the real estate market, it makes them true experts in the market. Moreover, the hybrid-company approach allows clients access to the widest range of commercial real estate services.

“Our goal is to offer a full complement of services that make the most sense for our clients’ investments,” Weitzman says. “We treat each property as if it were our own.”

New Projects

Speaking of properties, Weitzman and Cencor have quite a few new retail developments underway in Texas. One high-profile project is Main Street Village, a brand-new Kroger Signature-anchored center in Frisco, one of the fastest growing markets in the country. The 180,000-square-foot center is significant because it occupies one of the most prominent intersections in the community (Main Street at Teel Parkway). David Palmer, executive vice president and senior development partner, is directing the development of Main Street Village, which opened its first phase in summer 2004.

Also in Frisco is North Frisco Village, an approximately 170,000-square-foot community center located at Preston Road and Eldorado Parkway. The Albertsons-anchored center will break ground soon.

In Cedar Hill, in the booming Cedar Hill retail district, Weitzman and Cencor are underway on Cedar Hill Pointe, a 90,000-square-foot Best Buy-anchored center located at the northwest quadrant of Highway 67 and Pleasant Run Road. Jared Caplan, vice president of development, is handling development of Cedar Hill Pointe, which is scheduled to open in summer 2005.

The Home Depot is already open at Custer at Virginia Parkway in McKinney, Texas.

In Garland, where the newest mall in the Dallas/Fort Worth metroplex — Simon’s Firewheel Town Center — is underway, Cencor is planning Firewheel Market, a 100,000-square-foot lifestyle center. The location, at SH 78 and SH 190, represents the newest retail district in Dallas/Fort Worth. The mall itself, which will be anchored by Dillard’s and Foley’s, will be open-air — one of Simon’s new concepts — and its excitement will be complemented by Weitzman/Cencor’s peripheral project.

“The DFW office has seen a significant increase in retail tenant representation and project representation assignments under the direction of Brian Glaser, president of the Weitzman Commercial/Retail Division DFW, and Bob Young, managing director of brokerage services,” Weitzman says.

Windhaven Plaza is a 240,000-square-foot center anchored by Kroger Signature and Academy Sports & Outdoors in Plano, Texas.

Other planned projects in Dallas/Fort Worth include the 275,000-square-foot The Shops of Southlake, a specialty retail center planned at the intersection of South Carroll Avenue and Southlake Boulevard (FM 1709), directly opposite the successful Southlake Town Square in Southlake, a Dallas suburb. In addition, Cencor plans the development of Windhaven Pavilion, a 130,000-square-foot community center planned for the corner of Dallas North Tollway and Windhaven Parkway in Plano. The site adjoins Cinemark Tinseltown 20 Theater and Legacy Business Park.

In Austin, Weitzman/Cencor’s renovation of Capital Plaza is a true success story. The center is Austin’s oldest, and now it has been revitalized with a complete renovation and a major re-tenanting, including the addition of Target, Ross Dress For Less, Shoe Carnival and Conn’s electronics. Target was constructed from the ground up at the site of the demolished Montgomery Ward store. Tom Terkel, president of Cencor Urban, Cencor’s urban real estate division, directed the redevelopment.

Another high-profile Austin project is called The Triangle, a new mixed-use urban town center located at 45th and Guadalupe, featuring 150,000 square feet of specialty retail space, 800 apartments and office space. The project is expected to open in late 2005.

The Shops at Mira Vista was completed earlier this year in Rollingwood, Texas.

Austin has become a heavy hitter for Weitzman/Cencor. Weitzman’s Austin office, for example, has recently been awarded 14 new project-representation assignments totaling 1.02 million square feet. As a result, Weitzman now leases approximately 5 million square feet in Austin’s 27 million-square-foot retail market, and its Austin portfolio represents approximately 25 percent of the non-mall retail market in the greater Austin area. The Austin office is headed by Scott Freid and Lance Morris.

“Austin in recent years has moved up to be a primary market, with its population now at around 1.5 million people,” says Marshall Mills, president and COO of both Weitzman and Cencor. “And San Antonio has grown to be one of the largest cities in the U.S. Each of these markets also reports healthy, balanced retail markets in terms of supply and demand. That is the legacy of demand-based retail construction, which has kept our markets healthy.”

In San Antonio, Cencor is expanding one of its centers, Culebra Market, to meet this growing demand. The center now features an HEB grocery store, and Hobby Lobby will be opening, along with new retail space, in 2005. Upon completion of this 100,000-square-foot second phase, Culebra Market will span 230,000 square feet.

Also in San Antonio, one of Cencor’s newest projects is The Village at Forum Parkway, a regional center adjacent to San Antonio’s largest non-mall retail project, The Forum at Olympia Parkway, a prominent 1.5 million-square-foot power center. Located at IH-35 and Loop 1604, The Village at Forum Parkway is being constructed in phases on 16 acres and could total 150,000 square feet upon completion. Anchored by Bassett Furniture Direct, the center will open late this year.

The Houston office, under the direction of Steve Chandler and David Stukalin, is underway on four new projects, and that office’s third-party business is growing rapidly.In the Houston suburb of Pearland, Weitzman/Cencor’s Crossing at 518 is one of the largest, most significant projects in a very strong Houston market. Pearland, in fact, is booming in its own right. According to Weitzman, the city issued nearly 2,000 residential permits last year, compared to only 820 in 2000. The population is expected to nearly triple by 2020. The new Pearland project will incorporate 625,000 square feet of retail to help accommodate this growing population. Phase I, which is now underway, will include 150,000 square feet adjoining a recently opened Wal-Mart Supercenter. Best Buy, part of Phase I, is set to open this month. Another signed tenant is Bed Bath & Beyond.

The 228,000-square-foot Deer Park Station was recently completed in Houston.

Eagle Ranch Shopping Center, also in Houston, is located at Fry Road and W. Little York Road. Upon completion later this year, the center will include 93,000 square feet anchored by Kroger Signature, which is expected to open this month. In Montgomery County (Houston), Weitzman and Cencor recently completed The Market at 1488, an 83,151-square-foot, Kroger Signature-anchored center located at FM 1488 and FM 2979.

Growth & Service

“Cencor and Weitzman believe that relationships last longer than any transaction, and good real estate will thrive in any market,” Weitzman says. “We judge our success by our clients’ growth.”

In Montgomery County (Houston), Weitzman/Cencor recently completed The Market at 1488.

“Cencor and Weitzman have seen their third-party business expand significantly over the past few months,” Weitzman says. “Retail property owners are turning to Cencor for property management and asset management services and to Weitzman for project representation because they understand the value of those services.”

“We understand that a management company’s and a leasing company’s main goal is to add value to real estate,” he continues. “Every member of our staff operates with that goal in mind. Our most important asset is our people.”

Indeed, the two companies are made up of professionals who live and breathe real estate. They understand that you must be passionate about it in order to thrive. Marshall Mills sees this on a first-hand, daily basis. “That passion starts at the top,” he says. “No one is more passionate about real estate than Herb Weitzman.”

Weitzman does indeed love his work. But he also says he constantly looks for ways to better the company. “I spend each Monday morning in one of our outside offices, and I continually look to tweak our strategic model on ways to improve,” he says. “I learn from so many other companies, and also from my own people. We also want to have fun together and enjoy each other. We’re growing and improving together on a regular basis.”

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