FLOWER MOUND, TX—City incentives are being credited for a new project that just kicked off here with a delivery date in third quarter 2020. Irving-based developer Realty Capital, in partnership with Dallas-based Staubach Capital, have begun construction on Lakeside International Office Center.

The project will include two class-A office buildings with large floorplates and floor-to-ceiling glass. One building is to be located at 777 International Parkway and consist of a four-story 120,000-square-foot office property, and the other building will be located at 737 International Parkway with a two-story 18,000-square-foot office property.

Both buildings will be located just south of the intersection of International Parkway (FM 2499) and Lakeside Parkway within a three-minute drive to the north entrance of DFW Airport.

Staubach Capital provided the equity financing and First United Bank is providing the debt financing for the project.

“Flower Mound has established itself as an attractive area for new residents and businesses with a growing number of shops, restaurants, entertainment and residential options in the Lakeside mixed-use community,” said Jeff Staubach, founding partner of Staubach Capital. “Lakeside International Office Center will be the first of its kind in this part of the metroplex, providing a premium office experience with top-of-class amenities.”

The project was made possible due to Flower Mound's commitment to fulfilling its master plan, which envisions the office development along International Parkway at the southern entrance to the town. Its willingness to offer an aggressive incentive package helped Realty Capital obtain the debt financing needed to construct the buildings prior to any tenant commitments being secured.

“The town of Flower Mound deserves a ton of credit for getting behind this project and making it happen with the 380 Agreement,” said Jimmy Archie, managing director for Realty Capital. “Without the incentive agreement, we wouldn't have been able to obtain the financing to build the project on a speculative nature. Once we were able to obtain the financing and announce the project to the market, our first tenant showed up to lease a portion of the project prior to us breaking ground.”

IntelliCentrics will be the property's inaugural tenant. The company agreed to a 30,000-square-foot office lease in 777 International Parkway, which will serve as the company's global headquarters, encompassing the entire fourth floor of the building.

“As a 22-year resident of Flower Mound, I feel the vision is perfect for sustained growth benefiting both residents and commercial tenants,” said Mike Sheehan, CEO of IntelliCentrics.

Flower Mound is not only getting back slaps from tenants and parties responsible for the financing and construction of Lakeside International Office Center, but from its mayor.

“Since the adoption of the master plan in 2001, the town of Flower Mound has envisioned corporate office buildings along International Parkway to serve both as an employment center and a boost to the town's commercial tax base,” said Steve Dixon, Flower Mound mayor. “The incentive agreement sends a strong message to the corporate office market that Flower Mound is committed to being a prime location and welcomes them to our community.”

JLL's Doug Carignan represented the tenant in the lease negotiation. JLL's Cannon Camp and Chris Doggett will lead the marketing and leasing efforts for the property.

“This is a new-to-market office opportunity that will provide class-A premium office space in a park-like setting,” Camp tells GlobeSt.com. “The city of Flower Mound, Realty Capital and Staubach Capital worked very hard to make this project first class, and we are extremely excited to be a part of the team.”

The architect for the project is Boka Powell and the general contractor is Muckleroy and Falls. Property amenities will include a tenant lounge, coffee bar, building signage fronting International Parkway, structured parking, nearby dining and shopping options, and trail system connecting to The Shops at Lakeside.

Office product under development continues to fall due mostly to the completion of large corporate campuses, according to JLL research. Two years ago, 7.2 million square feet was under construction, while only 3.9 million square feet was underway at the end of first quarter. As the cycle wanes, developers are becoming increasingly cautious. However, leasing for new product in Uptown, Las Colinas and Legacy is still strong, possibly encouraging several spec projects to break ground after a lull in development.

Dallas should have more of the same steady growth in the office market in 2019, although economic forecasts show slowing mid- to late 2020. Current office design and recruiting trends will continue to benefit urban areas such as Uptown, the Urban Center in Las Colinas and Legacy. Landlords seeking to sell this during cycle will try to wrap up long-term extensions this year, says JLL.

Instant Insights /

Incentives Send a Strong Message to Corporate Office Market

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