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JLL Capital Markets is pleased to present the opportunity to acquire Speedway Logistics Crossing (the “Property”), a brand new, Class A+ Industrial Park strategically located in the North Fort Worth Submarket in the thriving Dallas / Fort Worth Industrial Market. The Property is comprised of two state-of-the-art industrial facilities which are currently 82% leased to AmerCare Royal (390,006 SF – Building 2) and WABTEC (265,000 SF – Building 1) for an average lease term of 12.3 years. Potential Investors have the unique opportunity to acquire a well located, well leased asset, in one of the most dynamic big box submarkets in the country, while also capturing a significant value proposition leasing the remaining 143,240 SF (18%) vacant space. The Speedway Logistics Crossing opportunity offers an ideal combination of functionality, location, quality, and exit liquidity for an investor seeking a core opportunity.
The Property is strategically located 1.6 miles northwest of the intersection of I-35W and SH-114 in the North Fort Worth (Alliance) Industrial Submarket, known for its accessibility to major interstate highways (I-35W, I-820, SH-81 and SH-114) that run directly through this region. The Property offers a prime location for local, regional and national distributors with exceptional regional accessibility and immediate access to an abundant labor supply. Positioned at the northeast intersection of Petty Place and FM 156, Speedway Logistics Crossing provides the rare opportunity to acquire a highly functional core asset with reliable in-place cash flow and a coveted big box distribution location.
STABLE IN PLACE CASH FLOW WITH ORGANIC INCOME GROWTH
The Property is currently 82% leased on a long-term basis to two tenants AmerCareRoyal and WABTEC. The two tenants have a WALT of over 12.3 years. AmerCareRoyal currently has 10.33 Years remaining on their lease with 2.50% annual rent escalations, while WABTEC signed a 15-year 6-month lease that is anticipated to commence November 1, 2020 with 2.35% annual rent escalations. Both leases would allow potential investors to capture substantial lease term and have healthy income growth embedded within the cash flow.
BRAND NEW INSTITUTIONAL QUALITY INDUSTRIAL PARK
Speedway Logistics Crossing features best-in-class industrial construction and highly functional Class A design providing all amenities and building characteristics sophisticated tenants have come to expect in modern industrial warehouses. The Property features two buildings, one 36’ clear front-park/rear-load facility (Building 1) and one 36’ clear cross-dock facility (Building 2).
VALUE PROPOSITION THROUGH VACANT SPACE LEASE UP
Since delivery in May 2020, Speedway Logistics Crossing is now 82% leased with 143,240 square feet of remaining vacant space in Building 1 allowing potential investors to capture additional yield through leasing up the remaining vacancy. Building 1’s Class A+ physical specifications, desirable distribution location, and functionality hold the potential to attract one of several credit tenant requirements within the market and submarket.
SUPERIOR LEASING VELOCITY WITHIN THE SUBMARKET
The Property is located in one of the most desirable industrial submarkets in the Dallas Fort Worth Metroplex. The North Fort Worth (Alliance) submarket has become the market’s primary industrial center for national and regional tenants and accounts for a critical mass of Class A DFW industrial product. The submarket accounted for over 17.5% (3.8M+ SF) of DFW’s total industrial absorption in 2019, and is not anticipated to slow down as 1.6M SF of space has been absorbed as of Q1 2020.