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PFLUGERVILLE, TX-Within two months of beginning a $50-million business park, Verde Corporate Realty Services is jump-starting construction on a second building to get some spec space on the ground. The firing pin was a 128,000-sf lease by a long-time client.
The El Paso-based developer was in talks with SPAN International Inc., a third-party logistics company, when it broke ground on a 144,000-sf warehouse at 900 New Meister Lane in early August. With the long-term lease now bed down, work is ramping up on a 100,800-sf sister at 828 New Meister Lane in the 63.6-acre Verde Springbrook Corporate Center. "It's pure spec," Rob Wendt, a Verde principal based in Austin, tells GlobeSt.com. "We have some prospects. There is nothing solid right now, but we feel pretty good about the response we've had."
SPAN International, a Toronto-based 3PL for nearby Solectron Corp., will get keys to Verde Springbrook Corporate Center 7 in early 2008. The firm, bought earlier this month by Singapore-based Flextronics International Ltd., plans to consolidate three locations in the Austin area. Its tenant rep was Russell Todd with HPI Real Estate Services & Investments in Austin.
Verde's second building is slated to come on line in February. "I'd expect leasing to take off after that," Wendt says. The quoted rate is $5.40 per sf plus $5 per sf as a tenant-improvement allowance. Verde Springbrook Corporate Center 10 can be divvied into 11,000-sf spots.
Wendt credits interest in the park to the large number of manufacturers within a 10-mile radius, need for new space by their third-party logistics providers and the park's Triple Freeport exemption, which cleared the last hurdle in August. At build-out, Verde Springbrook will have one million sf in 10 buildings ranging from 86,400 sf to 160,000 sf, all with 24-foot clear heights and truck courts from 120 feet to 180 feet in length.
The development plan is to stay flexible enough for at least one build-to-suit. The first two buildings absorb 14.4 acres in a land claim that's practically 100% developable, according to Wendt. "I hope by this time next year, we'll be under way with our next building," he says, adding all the land should be fully developed in five to seven years.
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