Tuesday Morning Sells 1.2 MSF Dallas Portfolio
- Jan 20, 2021
M2G Ventures and Pennybacker Capital LLC have acquired the 1.2 million-square-foot Dallas-area portfolio of industrial distribution centers and corporate headquarters of off-price home goods retailer Tuesday Morning in a sale-leaseback transaction. The announcement follows Tuesday Morning’s emergence from Chapter 11 bankruptcy.
The collection of Texas properties comprises the industrial facilities located at 14303, 14621, 14601 and 14639 Inwood Road on nearly 47 acres in Addison, and 4404 S. Beltwood Parkway in Farmers Branch, which account for a total of approximately 1.1 million square feet. “DFW is the fourth largest industrial market in the U.S.,” Jessica Miller Essl, co-founder of M2G Ventures, told Commercial Property Executive. “The Metropolitan /Addison submarket is highly industrial-concentrated with densely populated cities, including Farmer’s Branch, Addison and North Dallas. The portfolio is ideally located along Inwood Road within these markets, which are currently 95 percent occupied and have one of the highest occupancy rates in DFW.”
The remainder of the portfolio consists of Tuesday Morning’s corporate headquarters at 6250 Lyndon B. Johnson Freeway in Dallas. The office building, erected in 1969, encompasses roughly 105,000 square feet of space. Per terms of the transaction, Tuesday Morning will continue to occupy the industrial facilities under a 2.5-year lease agreement and the company will stay put in its headquarters under a 10-year lease deal. Lee & Associates’ Stephen Williamson and Adam Graham represented the partners in the transaction with Tuesday Morning.
Under the new ownership, the Tuesday Morning portfolio will likely undergo some changes down the road. “Due to the sheer size of the asset and portfolio, this site offers a ton of optionality for future uses,” Essl said. “M2G and Pennybacker are in the process of exploring the future of the asset and announcements will be coming soon.”