The catalyst to start work was a long-term lease from Valeo Compressor North America, a division of Paris-based Valeo Group. Scott Krikorian, managing director for TCC in Dallas, says Valeo needed to expand its footprint at Dallas/Fort Worth International Airport, but was unable to do so at its existing location, 1100 N. 28th Ave. The deal was in the market five months, with most airport-land developers in pursuit. "I think they definitely looked all over the airport," he says.
TCC has pulled 16 acres from its land bank for Trade Center IV, which will be visible from Texas 114 at the airport's northern entrance. Seattle-based Kennedy Associates Real Estate Counsel LP and TCC started the Trade Center project in 2006 with nearly 64 acres and have been adding steadily since then. TCC still has a 25-acre site to develop before it exhausts its in-hand airport options. Krikorian says one-million sf of the 1.7-million sf has been filled to date.
Krikorian tells GlobeSt.com that it made more sense to jump-start the spec than to split a 550,000-sf shell, particularly given the deals in the market. "Activity's been really pretty good," he says, "and we have good activity on all our spaces." He also explains that other openings in the park weren't quite large enough.
Krikorian says Valeo swung the deal to the TCC spec because "we had a good layout and a nice building that fit their needs." GSR Andrade Architects of Dallas designed a cross-dock with a 30-foot clear height, 50-foot column spacing, 60-foot staging bay, 140-foot truck court and an extra 50 feet for trailer storage. CF Jordan LP of El Paso is the general contractor.
"I think it has a good chance of leasing before it finishes," Krikorian says. At the helm of the preleasing charge is CB Richard Ellis vice president Steven M. Trese. The construction crew is in the process of pouring floor slabs.
Krikorian isn't tipping his hand about the opening quotes or the all-in construction cost. In the airport submarket, pure industrial space averaged $3.94 per sf and flex rang up $8.02 per sf, according to CBRE's second-quarter report, which is being released today. The 61.8-million-sf submarket has a 13.6% vacancy. As for the bricks and mortar, current construction costs should put the tab at roughly $15 million.
Valeo operates 125 plants and 62 research and development centers worldwide. The Trade Center IV space will be used for final assembly of compressors for the independent after market and distribution of automotive compressors. The Gordon Foster Co. of Arlington represented Valeo.
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