Texas Senate Runoff Divides Real Estate

Real estate heavyweights as farflung as Palm Beach have opened their wallets in a last-minute attempt to sway Texas’ Republican primary runoff for U.S. Senate.

Outgoing Texas Attorney General Ken Paxton is still challenging incumbent Sen. John Cornyn for the Republican nomination for U.S. Senator, this time in a May 26 runoff. While Cornyn bested Paxton in the March 3 primary race — Cornyn secured 42 percent of the vote, compared to Paxton’s 40.5 percent — neither achieved a majority.

Pollsters don’t agree on a clear favorite. The four most recent polls listed by the New York Times forecast a range of outcomes, from a narrow win for Cornyn to a strong lead for Paxton. Meanwhile, President Donald Trump is sticking to the sidelines; he’s yet to issue an endorsement despite saying he would back a candidate after the March primary.

The costly bloodbath has implications for national and statewide housing policy. With the housing shortage drawing heightened political attention, the Senate has faced pressure to respond with legislation, including an effective ban on built-to-rent homes that was recently sent to the House.

In addition, the Texas legislature has picked up issues dropped by the Senate before, including a ban on Chinese real estate investment that became law last year after Cornyn proposed narrower measures in 2018.

The last round of federal elections data reveals that real estate industry members in other states have a substantial interest in the race, with several South Florida players donating to Cornyn. Here is The Real Deal’s analysis of the biggest real estate industry donations for the candidates, according to data from the Federal Election Commission.

Texas donations

Among Texan industry members, allegiances appear unchanged.

Dallas-based Hillwood Development chairman Ross Perot Jr. and Billingsley Company co-founder Lucy Billingsley both donated to Cornyn again after Sept. 30, the last date available for federal election donation data before it was updated this month. The Mischer family of Houston-based Mischer Investments, a master-planned community developer, continued their support for Cornyn as well, with Paula Mischer donating a little over $10,000 in the winter after Walt Mischer gave $10,400 in the previous quarter.

Meanwhile, developer and land broker Rex Glendenning, Farmers Branch, Texas-based Centurion American CEO Mehrdad Moayedi, and residential developer Phillip Huffines, who are perhaps Paxton’s most prominent supporters in North Texas real estate, don’t surface in the data after September.

Newer donations for Paxton from the real estate industry include at least $3,500 from Danny Signorelli, founder of Houston-based master-planned community developer Signorelli Company; over $10,000 from North Texas developer James Mabrey; and $7,000 from disgraced Dallas developer Bill Hutchinson.

Out-of-state players

Several high-profile industry players from South Florida donated to Cornyn this cycle, and few donated to Paxton.

Bruce Toll, co-founder of Fort Washington, Pennsylvania-based Toll Brothers and a Mar-a-Lago member, gave Cornyn $6,000 in December. Palm Beach resident Dwight Schar, founder of Reston, Virginia-based homebuilder NVR, gave $10,500 in November. Fellow Palm Beach resident Steve Wynn, founder of Paradise, Nevada-based hospitality company Wynn Resorts, gave Cornyn $7,000 in October.

Paxton reported far fewer donations from South Floridians and none from Palm Beach addresses. Paxton’s campaign reported 14 donations from the major metros of South Florida, while Cornyn’s reported 43. Paxton’s most notable South Florida donors include Miami resident Christopher Cook, CEO of cryptocurrency miner Exacore, who gave him over $10,000 in December.

Billionaire Frank Fertitta, a Las Vegas resident and former owner of the Ultimate Fighting Championship, gave Cornyn $3,500.