Cadence McShane Rolls Up Sleeves in Dallas
- Jul 20, 2015
By Barbra Murray, Contributing Editor
Port Logistics Realty, a partnership of Xebec Realty Partners and CT Realty, has tapped Cadence McShane Construction Co. to serve as contractor for the initial phase of the 9 million-square-foot Southport Logistics Park in the Wilmer, Texas, just outside of Dallas. Cadence will build two speculative industrial buildings totaling 1.5 million square feet at Southport, which PLR is developing in a joint venture with Mitsubishi Corp., a subsidiary of Diamond Realty Investments.
Sited across Interstate 45 from the Union Pacific Intermodal Yard in the Inland Port area of the South Dallas submarket, Southport is a master-planned development that will ultimately consist of approximately nine distribution and e-commerce fulfillment center facilities spanning 531 acres. Phase I will encompass five structures, the first of which will encompass nearly 1.1 million square feet, with the second building offering nearly 400,000 square feet.
The two buildings will cost an estimated $88 million to complete. PLR is contributing approximately $33.5 million to the capital stack, which also includes a $42 million construction loan and a $13 million mezzanine loan from the Cornerstone Patriot Fund.
Cadence McShane is on track to complete construction of Phase I’s first two structures in the third quarter of 2016. Commercial real estate services firm CBRE Inc. is handling leasing, and has good fundamentals on its side. The industrial market in the Dallas Fort Worth Metroplex is thriving, buoyed by a number of factors. “DFW’s supply of well-educated workers and strong population growth make it an attractive market for employers, according to CBRE’s second quarter report. “DFW serves as a regional and national hub for logistics and distribution on global supply chains due to its central location and status as an inland port.” The area recorded positive net absorption for the 19th consecutive quarter and the vacancy rate continues to hover in the 7.4 percent range.