The market is ripe for the spec project, Steve Modory, Champion senior partner, told GlobeSt.com. There are less than five office projects under construction with available space in the booming submarket where open land is plentiful and unleased space is at a premium. "The market conditions in our mind dictate the need for additional spec office space in Las Colinas," emphasizes Modory.
He says the class A Westway I will come to market in May or June - just about the time when Champion and State Farm anticipate breaking ground on a second spec building. The master-planned Westway Business Park ultimately will deliver close to one million sf of new office space to the current 25 million sf of office space in the Las Colinas submarket.
Champion and State Farm first teamed in Atlanta, delivering a 500,000-sf warehouse. "This is an extension of this relationship with State Farm," says Modory, adding that the partnering provides capitalization to break away from atypical development of only one building per year.
Champion recently closed on 10 1/2 acres of the 60 acres, situated at the northwest quadrant of Interstate 635 and MacArthur Blvd., being purchased from Olympus Real Estate Corp., which held 100 acres in the high-end submarket. Modory didn't rule out the possibility of Champion buying the remaining Olympus acreage.
The development is being bolstered by a $20 million road infrastructure plan under construction by Olympus, the city of Irving and Texas Department of Transportation. At the heart of the construction is a bridge that will be completed by year's end will deliver east and west access to Interstate 635. "Most people aren't aware of the significance of this bridge," says Modory. Also being constructed is a TX U-turn at MacArthur Blvd., a main thoroughfare bisecting Las Colinas submarket which currently boasts 25 million sf of office space and eight million sf of industrial space.
The Las Colinas submarket is witnessing a building boon due to its proximity to the DFW International Airport and six major transportation arteries leading to Dallas, Ft. Worth and most of the metroplex's surrounding communities. The market also meets housing needs for all income levels plus has an abundance of retail support, emphasizes Modory.
Westway Business Park supplements another Champion development in Las Colinas, the 94-acre Sierra Park which has delivered 850,000 sf of office space in four buildings in three years. Westway will mimic Sierra's construction in that its flexible design can be used for a single tenant or multi-tenants needing upward of 15,000 sf. "It's a market where the tenant size is bigger," Modory says of the flexible design from Gromatsky Dupree & Associates, a Dallas architectural firm. The three-story Westway I will have 55,000 sf floors, separated into two pods, and outfitted with "all systems required for today's big tenants," says Modory. The project also includes 663 parking spaces, of which about 65% are covered.
As with Champion's other corporate campus projects, leasing will be handled in-house and will begin now that dirt is flying at the site, says Modory. The project cost is being kept under wraps, but rents will be in the $22 per sf on a gross basis rate, Modory told GlobeSt.com. The project is being constructed by locals, with Rogers O'Brien serving as general contractor and Winkelmann & Associates as civil engineer.
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