HQ Move Supports Coast-to-Coast Strategy
Xebec’s approach in Lakeland is a regional distribution strategy, which complements its focus on intermodal logistics, along with its national plan to grow its Texas asset base for long-distance transport.
DALLAS—After relocating to Dallas last year, Xebec continues a national strategy of building for the specific and unique demands in each of its target markets across the United States. The firm currently has more than 6.5 million square feet of industrial buildings under development in select logistics markets including Dallas, Atlanta, Charleston, SC; the Los Angeles Basin and Columbus, OH.
“After more than 30 years of basing our operations out of Southern California, Xebec relocated its headquarters to Dallas in 2017 to support our coast-to-coast build-to-core portfolio strategy,” Randy Kendrick, co-founder and CEO of Xebec, tells GlobeSt.com. “We wanted our headquarters to be in a city that had major international intermodal centers, excellent international airport and a diverse economic base that could support our investment platform growth and our overall strategy. We plan to grow our asset base in Texas and believe the regions around Dallas, Houston and other key intermodal cities will continue to be strategic locations for companies that need to reach customers in Texas or transport goods long distance from the coastal and inland ports.”
Xebec is developing 9 million square feet of industrial warehousing space in Dallas through a joint venture and is currently in negotiations for a speculative two-building 1.5-million-square-foot lease with a major national tenant. These buildings are less than one mile from the Union Pacific International Intermodal Facility in Wilmer, TX, a rail facility that is connected directly to the Los Angeles/Long Beach Port Complex, the busiest port by volume for international shipping containers.
“International shipping containers are the life blood for e-commerce fulfillment,” Kendrick continues. “This (UP Intermodal) is a vital transportation facility for any manufacturing, e-commerce or retail company that wants to reach consumers throughout Texas. We believe the e-commerce capabilities we know in Texas would not be possible without this critical piece of international logistics supply chain infrastructure.”
Xebec is actively pursuing sites in and around Dallas and Houston. It is looking for both developable land and existing quality assets to acquire for its open-ended real estate partnership, Xebec Industrial Trust. Another recent acquisition for Xebec is a 60-acre site located in Lakeland, FL along Interstate 4, a key logistics corridor that is home to one of the largest concentrations of distribution centers in the state. The Lakeland acquisition supports Xebec’s national investment strategy of acquiring in target markets. Xebec plans to invest a total of $39.3 million to develop a 533,000-square-foot class-A regional bulk logistics facility to meet demand from major retailers, distributors and third‑party logistics providers looking to reach consumers in Florida.
“The project is located in a submarket that is less than 45 minutes from both Tampa and Orlando, two of the nation’s fastest growing metropolitan areas,” said Kendrick. “The corridor between those two cities is home to nearly 207 million square feet of industrial real estate space and we believe the region will continue to experience demand for facilities of this size because of its growing demographic base and reach.”
The Lakeland submarket is home to more than 30 million square feet of industrial real estate. It is home to companies such as Walmart, Coca-Cola, Amazon and Publix Supermarkets. Lakeland has logistical competitive advantages including access to population centers such as Miami, Atlanta and Birmingham, AL within a one-day truck drive. Users can reach 19 million consumers within a 200-mile radius from the project and are within a one-hour drive from three international airports.
“Our approach in Lakeland is a regional distribution strategy, which complements our focus on intermodal logistic,” Kendrick continues to tell GlobeSt.com. “Lakeland allows users to reach consumers throughout Florida within a one-day truck drive, a reach that distributors located in the Atlanta hubs cannot achieve, and also has a one-day reach to markets as far north as Birmingham, AL.”
Construction on the 533,000-square-foot facility is expected to commence in the fourth quarter of 2018 and be completed in the third quarter of 2019. The finished facility will have a 40-foot clear height and a 185-foot truck court with 114 docks, 368 automobile parking spaces and 102 container parking spaces.
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