FEATURE ARTICLE, OCTOBER 2008

FALCON’S ONE-STOP SHOP
In the field of construction management, Falcon Construction Advisors touts itself as a full-service provider.
Coleman Wood

Between navigating the local government bureaucracy necessary to get a project approved, arranging the financing to get the project off the ground, and lining up the architects, engineers and contractors to build it, the development process can be a complicated endeavor. Some larger developers have entire divisions devoted to keeping everything in order. But for many smaller construction firms, and even for some larger firms that prefer to have a specialist come in, a construction management firm is essential for getting a project completed on-time and on-budget. Dallas-based Falcon Construction Advisors has built a name for itself providing just such a service.

“You can have over 100 activities on a large retail center that the owner is responsible for monitoring on a daily basis,” says Todd McCoy, a principal with Falcon Companies and president of Falcon Construction Advisors. “So it’s become almost a full-time job…If [the owner] doesn’t have a construction department, then you have to get out and hire a third-party management firm to assist with the daily coordination of the project.”

While Falcon Construction Advisors may be relatively new on the scene since its founding in 2002, the company’s leaders have spent decades in the real estate industry. Co-founded by Tim Hughes and Scott Muller, Falcon has represented such high-profile, national retailers as Whole Foods Market, Petco, The Container Store and Williams Sonoma. When the time came to launch Falcon Construction Advisors, Hughes and Muller looked to McCoy, already a veteran in the construction management field, to lead the division.

“I think Todd McCoy’s 25 years of experience building everything from a bank branch to the 62-story Nations Bank headquarters in Charlotte, [North Carolina], gives developers an incredible amount of trust and confidence that he can bring projects in on-time and on-budget,” says Hughes.

From there, Falcon Construction Advisors has grown into a full-service firm that assists its clients with everything from pre-development planning, budgeting and the entitlement process, to field construction management, tenant leasing, project close-outs and more. While this may seem like a lot for one company to handle, Hughes is proud of the fact that the company offers its clients such a large menu of services.

“Our goal has always been to never have any of our clients — whether it’s a national retail chain that we represent, a developer, a lender or a landlord — go anywhere outside of Falcon to get their needs met on a project or an assignment,” he adds.

On top of its plethora of services, Falcon also prides itself on having decades of experience in construction management amongst its personnel— something that can provide piece of mind to anxious developers.

“Basically, the experience level and the focus on details are allowing these developers to sleep at night without having to bring on a bunch of in-house people that will increase their overhead,” says Scott Muller, principal with Falcon.

With this assurance, Falcon has been able to attract a management portfolio that currently totals approximately 3 million square feet of new retail development worth approximately $370 million. A slew of Texas developers are currently utilizing Falcon’s services, including: Canyon Partners, Greenway Investments, Hermansen Land Development, Margaux Development,  Realty Capital Corporation, Regency Centers, St. Ives Realty, Trademark Property Company, and Weber & Company.

One of the biggest projects that the company is currently overseeing is the renovation of Corpus Christi’s Padre Staples Mall. The redevelopment of the approximately 1 million-square-foot mall is being undertaken by Trademark Property Company, which acquired the property this summer. Falcon is managing the first few phases of the $50 million renovation of the property, which includes a name change to La Palmera. Trademark looked to Falcon’s previous experience managing complex construction projects as a key factor in bringing the company on board.

“ La Palmera is going to be a challenge, of course, because the mall is going to stay open,” McCoy says. “It’s going to be done in three phases, and there are quite a few tenants that are going to have to be moved to temporary spaces, in order to get the Phase I work complete.”

Falcon is also overseeing the development of Frisco Market Center, the city of Frisco’s town square-style, master-planned development. Falcon has had to deal with the often-laborious task of getting the project’s designs approved through the city, but development has commenced. Phase I, which is currently underway, includes  the majority of the public and private utilities, common area paving and right-of-way work, the hike and bike trail, and retention pond for the retail, office, and entertainment venue.  Phase II construction can include up to 224,062 SF of additional retail restaurant, and hospitality users.

In age of escalating construction costs, Falcon sees itself as a way to mitigate the risk of developing a project. The company believes that having a single source oversee the different aspects of a project helps accomplish this goal.

“You have to have a single point of contact that has its arms around the entire development process,” McCoy says, adding that the sooner in the development process the construction management firm is brought on board, the easier it is to keep everything within budget.

Companies affected by the current economic climate are scrutinizing the bottom line closer than ever before. Lenders want assurance that the project cost will not run over, and Hughes believes that Falcon can provide that.

“With the market changing, the capital markets tightening, and lenders and developers becoming more and more concerned with delivery dates, cost overruns and their own personal overhead, it has created an opportunity for us to step in and be that outsource team that can help effectively plan the project without taking on that added cost,” he says.

While construction management could hardly be considered a niche industry, Falcon Construction Advisors has been able to make a name for itself in this specialized field. The experience the company has at the top, along with its attention to detail and to the bottom line, has made it a first choice with developers statewide.  As the caliber of projects that Falcon manages increases, expect big things from it in the future.

Falcon Construction Advisors: Projects in the Works Padre Staples Mall (La Palmera) Padre Staples Mall (La Palmera) Location: Corpus Christi, Texas Size: Approximately 1 million square feet Cost: $50 million Owner: Trademark Property Company Details: At the newly christened La Palmera, a name change is the least of the renovations being planned by owner Trademark Property Company, with the assistance of Falcon. Renovations planned include a transformation of the center’s main entrance into an outdoor lifestyle court with lush palm seating areas and new entrances to the story. The mall’s indoor area will see new landscaping, and the food court will be redesigned with an aquatic theme, including a large aquarium. A children’s play area will also be constructed. Frisco Market Center Frisco Market Center Location: Frisco, Texas Size: 88 acres Owner: Hermansen Land Development Details: While final plans are still being drawn up for Frisco’s town center project, current plans call for a mix of restaurants and retail, Class A office space, multifamily units, a hotel, and entertainment options. The pedestrian-friendly project also will include a hiking and biking trail that winds through landscaping amenities such as a large pond and fountains. The first phase of the project, consisting of the installation of infrastructure for the project. Phase II, which is scheduled to begin in 2009, will add approximately 224,000 square feet of retail, entertainment and a 150-room Courtyard by Marriott hotel space to the project.

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