JV Lands Funding for 1 MSF Dallas-Area Logistics Project

Bandera Ventures has teamed up with Invesco Real Estate to build a spec industrial development in Fort Worth, Texas.
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A 956,000-square-foot, two-building industrial project to be developed in Fort Worth, Texas, by Bandera Ventures and Invesco Real Estate has received equity and construction financing, according to JLL Capital Markets, which secured the funding and arranged Bandera’s partnership with Invesco.

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On behalf of the partnership, JLL arranged a three-year construction loan with Veritex Bank. Specifics on the equity and construction funding were not disclosed.

South Fort Worth Logistics Center is a speculative logistics development on a 47.6-acre site at the northwest corner of Oak Grove Road and Everman Parkway. The location has easy north-south access via I-35W and east-west access via I-20.

The project is being designed by Halff Associates, of Richardson, Texas, and will consist of two cross-dock buildings featuring 36- to 40-foot clear heights, deep truck courts, ample parking and trailer storage, 231 loading doors and ESFR sprinkler systems. The buildings can be configured for a single tenant or multiple tenants. The project’s completion is scheduled for 2021.

The JLL Capital Markets team representing the developers was led by Managing Director Dustin Volz, Directors Stephen Bailey and Taylor Coy, and Analyst Zach Riebe.

Balancing act

Bandera went through a similar process when getting under way with its five-building Gateway Logistics Center at Dallas/Fort Worth International Airport about two years ago. In that case, HFF (since acquired by JLL, of course) both secured Long Wharf Capital as Bandera’s joint venture equity partner and arranged construction funding from Bank of the Ozarks.

The metro Dallas–Fort Worth is teetering between worsening job losses caused by COVID-19 and strong population growth, of 126,000 residents year-over-year, according to a second-quarter report from Cushman & Wakefield.

The industrial space market is fairly stable, with vacancy rising by 20 basis points during the quarter (to 6.1 percent) as a result of completions slightly outpacing net absorption.

The South Fort Worth submarket has an overall average vacancy of 5.1 percent, on an inventory of 27.9 million square feet. Absorption this year has totaled 757,000 square feet, versus 3 million square feet under construction, again according to Cushman & Wakefield.