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.

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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.

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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."

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Hargis tells GlobeSt.com 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.

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