DENVER—With an eye toward capitalizing on shifting demographic and logistics trends, locally based Amstar has launched a program of speculative industrial development. The first three markets are Dallas/Fort Worth, Houston and Atlanta, with Amstar and its development partners building more than 1.2 million square feet across the three cities.
“These investments fit within Amstar’s industrial development strategy, which is focused on providing superior risk-adjusted returns by partnering with high-quality local development firms to acquire exceptional construction-ready sites in strong US industrial markets and adding value through the development and leasing of institutional quality class A industrial product,” says VP Tricia Noble. She adds that the company is pursuing additional industrial development opportunities in both the Southeast and Pacific Northwest totaling an additional 670,000 square feet.
In June, Amstar and development partners Huntington Industrial Partners and Seefried Industrial Properties broke ground on Riverpark 1000, a 145,579-square-foot light industrial facility in the Great Southwest submarket of Dallas. Located off West Trinity Boulevard and less than 10 miles from DFW International Airport, the property will feature a rear-loading configuration, 32′ clear height, and abundant trailer parking. CBRE is handling leasing assignments for the property, which is scheduled for completion in the fourth quarter.
Amstar and Huntington have also begun building DFW North Distribution Center, a 401,600-square-foot bulk property in Dallas’ North Airport submarket. Located on Lakeside Parkway in the town of Flower Mound, it’s also scheduled for completion in Q4 and is being marketed by Stream Realty. Noble predicts that both DFW properties will be well received, thanks to their airport proximity and “the state-of-the-art features of each building.”
In Houston, Amstar has partnered with Davis Commercial Development to begin construction of the Beltway North Commerce Center, a 352,000-square-foot cross-dock building in the North Houston submarket. The site benefits from more than 1,200 feet of frontage on Beltway 8 and lies just east of the intersection with the Hardy Toll Road, immediately south of George Bush Intercontinental Airport. Completion is scheduled for Q4; Stream Realty is once again handling leasing.
“Houston has led the nation in job and population growth since the recession, spurring homebuilding and household consumption,” says SVP Daniel Cohen. “In addition, Houston is the epicenter of the energy boom, and warehouse space demand from mining and drilling firms has increased dramatically. Our Houston project is favorably located for prospective tenants from consumer-driven and energy-related tenants, and the quality and configuration of the building should position it well for success.
Amstar’s latest acquisition is a 30-acre site in Fairburn, GA, in the I-85 South submarket of Atlanta, on which it will build a 317,520-square-foot cross-dock distribution facility. The site is located less than 1.5 miles from Interstate 85, approximately 14 miles south of Hartsfield-Jackson Airport and four miles from the CSX intermodal yard. Amstar, with development partners Huntington and Trammell Crow Co., expects to begin construction later in Q3. CBRE is marketing the building for lease.