Plum Creek Reaches Tipping Point with Lowe’s and Amazon

KYLE, TX—Lowe’s Companies Inc. has signed a lease for 120,000 square feet in Kyle Crossing Business Park where it plans to open a distribution center. Lowe’s will occupy approximately 60% of building one at 1980 Kohlers Crossing, adjacent to the nearly 308,000-square-foot sortation facility leased by Amazon that will employ more than 200 workers. Lowe’s is the fourth major employer that Plum Creek has landed.

“Kyle Crossing was built on a speculative basis by major national industrial developer Majestic Realty as its first project in Central Texas,” Brian Masterman, Majestic senior vice president, tells GlobeSt.com.  “This has paid off for Majestic, Kyle and Plum Creek as Amazon leased nearly 308,000 square feet in July, leaving less than half of one building in the two-building business park available for lease.”

The 40-acre business park is one block west of Interstate 35 in the mixed-use master-planned community of Plum Creek approximately 20 miles south of downtown Austin. The community has reached a real tipping point when it comes to commercial development and is finally fulfilling its long-planned goal of becoming a true live-work-play community under the management of Terry Mitchell, who was hired to accelerate commercial development in Plum Creek a few years ago.

“Plum Creek has become a major employment center in Kyle because it offers a convenient and highly accessible location in a true live-work-play environment that appeals to companies and their workers,” said Terry Mitchell, Momark principal who oversees development at Plum Creek. “This combination is difficult to find anywhere, especially in an environment that is as business friendly as the city of Kyle and the state of Texas.”

Located between Austin and San Antonio, Kyle is one of the fastest growing cities in Texas. Once primarily a bedroom community and now a city of more than 50,000 residents, city officials have prioritized bringing more jobs and business to the community in recent years.

To be sure, Kyle has long sought to diversify its tax base. More specifically, city leaders have targeted distribution facilities given the city’s strategic location on Interstate 35 between Austin and San Antonio, but the city was held back by the lack of available high-quality facilities already on the ground rather than land available. This is key to attracting large national tenants.

“The city of Kyle has long been well positioned to become a logistics hub, but we needed facilities on the ground to compete,” said Travis Mitchell, Kyle mayor. “Kyle Crossing has proven that Kyle is a highly desirable location among marquee companies at an opportune time when more and more of these businesses are expanding their logistics operations.”

More than 8 million square feet of commercial development is planned in Plum Creek. Last month, NorthPoint Development started construction on a 859,000-square-foot industrial park there. An unproven industrial market is now proven and this pioneering project was a real factor, Majestic officials point out.

In addition to Amazon, South Korea-based ENF Technology is currently building its $45 million US headquarters nearby where it will employ approximately 50 workers in Plum Creek. RSI Inc. moved its headquarters to Plum Creek in 2007 where it employs approximately 60 full-time employees.

Sparrow Partners is breaking ground this month on the first 55-plus active adult community located in the mixed-use master-planned community of Plum Creek. The 185-unit Sage Plum Creek community will offer resort-style amenities, a daily schedule of organized activities and a wide range of fitness classes.

Plum Creek is a 2,200-acre master-planned development in a walkable community. Developed in phases, the former Negley family ranch land is now home to more than 2,500 single-family homes, 1,800 multifamily homes, an assisted living facility, an 18-hole golf course, 100-acre Austin Community College campus, and more than 150 acres of park land and open space.