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."