CT Realty, Xebec Buy 530 Acres for 9 MSF Dallas Industrial Complex
- Mar 05, 2013
CT Realty Investors and Xebec Realty Partners have big plans in Dallas–big multi-million-square-foot plans. The partners have acquired a 530-acre tract of land in the South Dallas Intermodal Hub for the development of Southport Logistics Park, a compound that will be able to accommodate 9 million square feet of premier distribution and e-commerce logistics space.
The seller of the acreage is a group that had owned the property since purchasing it from Union Valley Ranch L.P. in 2004. The site that will become home to Southport has location on its side. “The CT/Xebec property is adjacent to the 360-acre Union Pacific Intermodal Yard and proximate to the FedEx Ground Hub in Hutchins, and this infrastructure is critical to serving the needs of e-commerce fulfillment and distribution center user requirements,” J.C. Watson, CEO of CT Realty, told Commercial Property Executive.
But it’s not just the cross streets that will likely prove conducive to Southport’s success. Metropolitan Dallas itself is a prime location for such a project. “The greater [Dallas-Fort Worth] market is a significant industrial submarket and one of the largest inland ports in the country with over 700 million square feet of standing inventory, with net absorption over the last two years of greater than 25 million square feet,” Watson said.
CT Realty and Xebec plan to pepper Southport with speculative and build-to-suit facilities as small as 500,000 square feet and as large as 1.5 million square feet, with an eye on reeling in some of the country’s biggest industrial users. The partners have tapped commercial real estate services firm CBRE Group Inc. to spearhead leasing and sales at Southport, and they expect the City of Los Angeles, home to the largest port in the country, to indirectly play a large role in the marketing effort.
“Over 40 percent of inbound containers to the U.S. enter in Los Angeles and the global supply chain infrastructure that extends beyond these port enclosures includes unit trains and truck chassis,” Watson added. “Modern logistics warehouses and fulfillment facilities cluster in major population centers such as Dallas that are served by major intermodal yards which are an extension of the various seaports that serve the U.S., in particular, Los Angeles. We believe that South Dallas is the next logical submarket to evolve and will follow the successes seen in and near the intermodal facility in Northwest Dallas/Fort Worth.”