An official ground-breaking is anticipated within 60 days at the site, located on the west side of Cockrell Hill Road in the 900-acre Pinnacle Park. First Industrial is the third developer in recent weeks to announce a project start in what is turning into a Pinnacle Park land rush. "It's the development of this era for that part of Dallas," Gustafson tells GlobeSt.com. The decision also heralds First Industrial's thrust to become a major developer in Dallas-Ft. Worth.
The Chicago-based industrial real estate firm is nearing completion on the 228,000-sf Addison Tech Center, its first development project since entering the DFW market in the early 1990s. More developments are on the drawing board, but Gustafson isn't at liberty to talk about them yet. In the next few years, First Industrial plans to pump several hundred million dollars into a development strategy for premier positioning as an industrial developer in the region. First Industrial currently owns about 6.5 million sf, including the recent 25-building acquisition in Valwood park, but all of that has been accumulated in buys of existing DFW structures. "With this project First Industrial will truly establish a presence in the industrial development market in Dallas-Ft. Worth," says Gustafson.
The irony of Gustafson's involvement at Pinnacle Park is that he will be vying for tenants against his former employer, Hillwood, and the man whose shoes he filled at Ross Perot's company, Jon Napper who now heads up Panattoni Development Co.'s Dallas office.Like Hillwood, First Industrial has acquired its Pinnacle Park parcel from Morning Park Inc., the business park's majority landowner.
Until the recent announcement wave of project announcements, the submarket had very little new product, according to Gustafson. Add that to the readily accessible interstate infrastructure and it's a sure winner.
Industrial development is driving the DFW market these days. "The mood has changed," he says. He believes that more manufacturing interests see the wisdom behind the bevy of corporate relocations to DFW due to weather, labor pool and key positioning for coast-to-coast travel, or in this case, distribution.
First Industrial Business Park will get under way with a 30-foot clear, 448,000-sf, cross-dock bulk warehouse and a 24-foot clear, 116,000-sf rear-load light industrial building. The structures will deliver in early 2002. When those are leased, work starts on two more buildings, says Gustafson. The one certainty about the designs is that all buildings will target a budding market, the 20,000-sf user and up. A number of developers of late have targeted that niche market and are steering clear of big box industrial projects.
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