Friday, April 17, 2009

GMC Supplier Signs for 186,000 SF

Flex-N-Gate will continue providing bumpers and other components to client General Motors Corp. with help from its 186,344 square feet facility across the street from Arlington's GM plant. The Canadian-based Flex-N-Gate, which signed a five-year lease for the warehouse space, provides bumper assemblies for GMC's Chevy Tahoe trucks, Cadillac Escalade vehicles and other sports utility vehicles.

CB Richard Ellis vice president Corbin Crews, who represented landlord CRP-2 West Dallas LP in the transaction, says Flex-N-Gate had been occupying the free-standing building at 2400 Centennial Dr. for some time. The building was developed in the late 1980s as a build-to-suit for Wickes Furniture Co. Inc. When Wickes was bought by Rooms-To-Go during the early 2000s, it vacated the building and eventually sublet it to Flex-N-Gate says Crews, who is with CBRE's Dallas office.

The building had a quoted ask of $3.25 per square foot net. Crews says it had been marketed for a time while Flex-N-Gate was examining other options once its sublet expired. A workable deal between tenant and building owner was struck, however, and with little fanfare. Crews tells GlobeSt.com Flex-N-Gate is paying more for its full-term lease than it did under the Wicks sublet, and the owner is getting less, but "it was a good compromise for everyone. We're happy to have Flex-N-Gate there."

Crews explains the Arlington warehouse is a sourcing operation for Flex-N-Gate. The company's plant in Ada, OK manufactures bumper parts, then ships them to Texas. Once in Arlington, the parts are assembled, then delivered to the GMC plant.

"It's why Flex-N-Gate has to be across the street," Crews says. "GM has just-in-time inventory, meaning they take (the bumpers) when they need them." Even better news for the tenant is that the GMC Arlington plant is the only one in the country still working on SUVs. "This is pretty amazing, considering everything we're reading about GMC," Crews says.
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By Amy Wolff Sorter of GlobeSt.com