The distribution center at 4038 Rock Quarry Rd. is the last piece of a portfolio sale by the Denver-based REIT. Conor Feeney, associate for CB Richard Ellis in Dallas, tells GlobeSt.com TA topped five other institutional investors vying for the real estate, which is leased to Central Garden & Pet Co. of Dallas and International Truck & Engine Corp. of Warrenville, IL. The local company has a lease running until 2017 for 120,000 sf of the building while the Illinois engine company controls 360,000 sf until 2015.
Feeney, CBRE's point man for the sale, says the deal took four months to reach the closing table because the seller had it in a cross-collateralized loan and had to substitute another property into the pool in order to carve out Pinnacle C. TA Associates laid cash on the table, "stepping up the pricing" to score the win in a one-off transaction for a separate account client, according to Feeney.
The building was developed in 2001 by Atlanta-based IDI Inc., which sold it to DCT in December 2003. The building, designed with 30-foot clear height and 53 dock doors, sits on a 22.7-acre tract in the Interstate 30-fronting industrial park.
Josh McArtor, CBRE's first vice president, says the Pinnacle Park corridor has matured into an institutional submarket in the past decade. Not only is it close-in to Downtown Dallas, but Des Moines-based Principal Real Estate Investors' underwriting of a new interstate interchange, with future reimbursement from the city, has been instrumental in hiking interest as has the steadily growing retail additions by several developers.
CBRE vice chairman Jack Fraker, McArtor and Feeney initially had marketed the DCT properties as a package, but split it up midstream in the campaign. Hines paid $42.8 million for 643,429 sf in two buildings at 4050 and 4055 Corporate Dr. in Grapevine, TX. "As we like to say around here, the sum of the parts was greater than the whole," McArtor says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
