Tuesday, July 19, 2016

Exclusive: Developer buys Fossil-held land, DFW Airport parcel for 2 projects

Denver-based DCT Industrial Trust, an industrial real estate development firm, has acquired two parcels of infill land in North Texas, with plans to begin speculative development on each of the sites by the end of the year.

The developer has acquired 17.5 acres of land in Garland from Richardson-based Fossil Group Inc., after the retailer said it wouldn't sell the land for the past 15 years.
Two high-profile sites in North Texas were acquired by DCT Industrial
for some in-fill distribution and industrial facilities. This photo is at Mercer
Business Park's industrial business park.

DCT (NYSE: DCT) also acquired a 9.9-acre tract along State Highway 121 nearDallas/Fort Worth International Airport from a family trust, which had owned the site for three decades. Terms of the deals were undisclosed.

"It is getting increasingly difficult to find attractive pieces of infill land, which is what's interesting," Art Barkley, a senior vice president at DCT Industrial, told the Dallas Business Journal in an exclusive interview Thursday.

"In the case of Fossil, everyone thought it was off limits because they had expressed for 12 years they would never sell it and the same happened with the family trust that had owned that parcel for 30 years, but everything changes," he told me.

DCT Industrial plans to develop a 270,000-square-foot facility on the 17.5-acre tract at the southwest corner of Miller Road and Sanden Drive in northeast Dallas.
The developer plans to build a 112,000-suqare-foot speculative facility near State Highway 121 and Freeport Parkway near the airport.

Barkley said each of the land deals came down to persistence and timing.
Fossil executives had always intended to expand on the 17.5-acre tract with a distribution hub adjacent to its existing manufacturing facility. Later, company officials determined they didn't want the manufacturing and distribution on top of each other, he said.

In the case of the D/FW Airport tract, Barkley said the family trust tried to rezone the land from industrial to retail, but after experiencing an uphill battle trying to up zone the property the family decided to sell.

DCT Industrial is expected to begin developing the two speculative buildings after getting the company's board approval and completing two existing developments, which are both slated for delivery by September.

"We view the market as very strong and continuing to be strong for both of these locations," Barkley told me. "This year would be desirable to get them up."
Dallas-based Pross Design Group is the project architect on the two industrial buildings. Chicago-based FCL Builders is helping DCT with its initial contracting budgets.

Conrad Madsen and Greg Nelson of Dallas-based Paladin Partners were selected to market the 270,000-square-foot industrial building in northeast Dallas.
Tyson Erwin, John Leinbaugh and Rick Medinis of NAI Robert Lynn's Dallas office was selected to market the 112,000-square-foot industrial building near D/FW Airport.

Written by Candace Carlisle/Dallas Business Journal