The AllianceTexas development has created nearly 48,800 jobs, with 1,300 of those coming in 2017, said Mike Berry, president of Hillwood, the huge project’s developer. During his annual report to the Fort Worth City Council on Feb. 6, Berry said he had hoped the area would grow to 50,000 jobs by the end of the year, but he expects to cross that threshold in 2018.
An annual study by Insight Research Corp. reports that AllianceTexas has generated about $69.08 billion in economic impact from 1990 through 2017, with about $4.73 billion of the total generated in 2017.
Private investment at AllianceTexas is estimated to be $8.22 billion, representing a 12-to-1 private-to-public per-dollar investment, while total public investment in the project — which includes roads, infrastructure and schools — exceeds $689 million.
“AllianceTexas continues to be a significant driver for our regional economy as we expand our footprint even farther north into Denton County,” said Berry. “I’m proud to say that AllianceTexas is also leading the way for the region in attracting high-paying jobs in the technology and financial services industries, while also seeing a great deal of e-commerce expansion.”
Since 1990, more than $1.9 billion has been paid cumulatively to five cities (Fort Worth, Roanoke, Haslet, Northlake and Westlake), two counties, (Tarrant and Denton), and two independent school districts (Keller and Northwest). This includes the $173.6 million in property taxes paid to local public entities in 2017.
In recent years, many of the new jobs coming to Texas have been in the tech sector. Upon full build-out, AllianceTexas will be capable of delivering more than 400 megawatts of new supply, basically replicating the current capacity of the entire Dallas-Fort Worth marketplace. In fact, AllianceTexas has been home to data centers for more than 20 years and has 350-400 acres master-planned specifically for data center development.
Data centers are making their presence known at AllianceTexas, most publicly with Facebook’s $1 billion campus. T5 Data Centers has announced plans to partner with Hillwood to develop the T5@Alliance data center campus. The project is backed by IPI Data Center Partners Management LLC, which is sponsored by ICONIQ Capita LLC and an affiliate of Iron Point Partners LLC.
Financial services providers are putting down roots at AllianceTexas too, with the arrival of Charles Schwab Corp.’s regional corporate campus at Circle T Ranch and Mercedes-Benz Financial Services’s new, build-to-suit, 200,000-square-foot facility. The companies will have a combined total of about 5,900 direct and indirect jobs.
The Alliance Airport, which anchors the development, opened two new aircraft hangars and added new services through Hillwood Airways. Completion of the runway extension project in 2018 aims to further establish the airport as one of the top regional and national industrial airports.
During his presentation, Berry noted that the last segment of Interstate 35 reconstruction needs to be completed. The Fort Worth Chamber of Commerce has started a letter-writing campaign to urge Texas lawmakers and transportation leaders to fund the final portion of the North Tarrant Express Project, which runs from north of downtown to the AllianceTexas area.
In 2009 the Legislature approved a funding mechanism for the North Tarrant Express that included the addition of toll lanes, but late in 2017, as the popularity of toll lanes has decreased, the Texas Transportation Commission rejected funding for highway projects that included toll lanes.
OIL AND GAS COMPANY
BUYS IRVING CAMPUS FOR HQ
Hangover Opportunity Fund LLC has sold a 66,885-square-foot office campus in Irving to an oil-and-gas company in an all-cash transaction, ending a four-year hold and recouping on its significant investment in structural and exterior repairs to the trio of buildings. No price for the transaction was released and the name of the energy company was not released. The buyer of record is TPS Realty LLC.
The single-story brick structures are situated on nearly 4.6 acres at 6301, 6321 and 6341 Campus Circle Drive East in Irving. The buildings total 21,290 square feet, 22,245 square feet and 23,350 square feet.
“There is not a lot of opportunity for owner/occupants in this submarket for buildings in this size point,” said Clint Holland, acquisitions director for Arlington-based SkyWalker Property Partners, the fund’s manager.
The plan is to relocate the oil-and-gas company’s headquarters to 6321 Campus Circle East. There will be office space available for lease in the other two class B office buildings, which presently have two tenants.
The Campus Circle campus is close to State Highway 114 and the President George Bush Turnpike. It was developed in 1985 as a multi-tenant office project.
The Hangover Fund has owned the property since November 2013; it bought it from the lender as a value-add investment because of its condition at the time. There was one tenant, who vacated shortly thereafter. SkyWalker Property Partners immediately began a $350,000 capital improvement campaign to repair foundations and underground plumbing, re-landscape the campus and create speculative office suites.
Initially, a repositioning strategy focused on the project’s historical multi-tenant use. Six months ago, that was changed to a “for sale” listing targeting owner/occupants.
“We had eight prospects looking at the space over a two-month period and three bids once we shifted our strategy to owner/occupants,” Holland said. “The overall timing was right with the region’s steadily increasing rents and changes in the tax laws.”
TPS Realty’s all-cash offer set it apart from competing bids. It was just 45 days from contract to closing, marking the fourth disposition in the past year for the Hangover fund.
Matt Hurlbut of Transwestern Dallas represented the seller. Zack Stevens of NAI Robert Lynn negotiated for the buyer.
Sublett Crossing, a 23,470-square-foot shopping center shadow anchored by a recently remodeled Albertson’s in Arlington, has been sold. The center is located at 6320 US Highway 287. “A local Texas 1031 exchange buyer purchased the asset due to the complementary mix of national and regional tenants with a strong historical occupancy,” said Jared Aubrey, senior vice president, CBRE. Aubrey and Michael Austry with CBRE in Dallas brokered the sale.
A local, all-cash, non-exchange buyer has purchased the CVS located at 9620 White Settlement Road in Fort Worth in an off-market transaction, CBRE announced. This was a short term double net lease with less than 2 years remaining. Jared Aubrey, Michael Austry and Brad Benjamin of CBRE brokered the sale.
Institutional Property Advisors (IPA), a division of Marcus & Millichap, has sold The Ranch at Fossil Creek, a 274-unit apartment complex in Fort Worth.
“Built in 2002, The Ranch at Fossil Creek is a low-density asset that benefits from a strategic location in an area with a scarcity of new multifamily product,” said Will Balthrope, executive director. “The acquisition provides new ownership with an opportunity to add value by upgrading the interiors.”
Balthrope, Drew Kile and Joey Tumminello represented the seller, Beachwold Residential, and procured the buyer, CAF Capital Partners.
Southlake Dermatology has moved to the Southlake Medical Building on State Highway 114. The dermatology practice has expanded into a newly designed, 13,684-square-foot, custom-finished space that will more than double the size of its previous facility.
Kayanne Forney and Ben Sumner, both of Centurion Real Estate Partners, represented Southlake Dermatology in the new lease. Eric Sheets of Medcore Partners represented the building owner, Southlake Texas Medical Building I, LP, a partnership operated by LandPlan.
The owners of Yard Art Patio & Fireplace have signed a lease to open a 9,122-square-foot store at 5270 South Hulen St. in the Hulen Fashion Center in Fort Worth. Other tenants in the center include Total Wine, Tuesday Morning, Uptown Cheapskate and Men’s Wearhouse. Venture’s Easley Waggoner Jr. and Amanda Throckmorton represented the landlord, Venture Hulen LP, a partnership of Venture Investment Partners LLC, in lease negotiations. Bob Moore with Tiburon Commercial Real Estate represented the tenant.
Send real deals to Robert Francis at email@example.com.