The buildings will sit at 8555 and 8569 NE Loop 410. Both areslated to deliver in late 2008. A development cost isn't available,but similar structures have come out of the ground for $60 per sfto $80 per sf.


ProLogis acquired the 252,900-sf City Park East for $7.5 millionin 2003. Charles Hargis, vice president for Denver-based company,says it always planned to build more industrial space on the extraeight acres that it got with the four-building buy. When Gulf CoastPaper Co., which is currently leasing space from ProLogis, neededto expand its 31,000-sf distribution center at 4030 Binz-EnglemanRd., a deal was struck between for a design-build project thatwould be purchased by Gulf Coast Paper upon completion. Thebuild-to-suit is about three miles southeast of its otherlocation.


Hargis says the reason for the spec building is due toincredibly high demand for industrial product. "Our entire existingportfolio is running north of 96% leased and statistically we're100% full," he explains. "In looking at the ebb and flow of ourtenants, we realized we needed more product."


Hargis tells that ProLogis wants to add at least350,000 this year to its 7.4-million-sf regional portfolio that itmanages and has developed in the past four years. The plans includea 55-acre tract in Tri-County IndustrialPark in Schertz, TX, north of San Antonio. Meanwhile,ProLogis is looking for other industrial land sites. "Manufacturingcontinues strong in Mexico, which feeds our San Antoniooperations," he adds.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.