ADDISON, TX—Despite the substantial disruption to the local and national economy, deals are getting done. Case in point is the fact that Dallas-based commercial real estate investor and operator Pillar Commercial recently purchased Addison II, a 182,154-square-foot light industrial building.
Located at 4550 Excel Pkwy., the circa-1996 property is adjacent to Addison Airport near the Dallas North Tollway. The light industrial space is 100% climate controlled and features a 32-foot clear height that is served by nine dock-high and drive-in doors.
Addison II is 100% leased to a mix of tenants including Southern Glazer Wine & Spirits, Assurant Solutions and Arbonne International. Addison II also has generous parking with an adjacent parcel that allows the office users a 5:1,000 ratio. As a result, these tenants use the office space to accommodate call center operations.
“The quality of Addison II and its strong tenancy were key factors in this acquisition,” says Manny Ybarra, Pillar Commercial founder and president. “In addition, the property’s location is ideal for users seeking a combination of office and production space within a micro-market that currently stands at 94% occupancy.”
Pillar acquired Addison II through its Pillar Real Estate Fund I/PREF I, a Texas-focused investment vehicle the company launched last year. This acquisition is the third investment for PREF I. Addison II aligns well with Pillar’s middle-market investment strategy for PREF I, Ybarra says.
“Addison II aligns nicely with our PREF I strategy of acquiring office and light industrial quality assets,” he tells GlobeSt.com. “It further complements our existing portfolio by adding an investment with a strong risk-mitigated profile.”
Crossfirst Bank financed the transaction. Brian Carlton with JLL represented Pillar Commercial in sourcing the debt.
Large and growing population centers supporting e-commerce continue to drive industrial investment sales, according to a February 2020 Avison Young industrial investment review. A review of five major industrial markets showed Dallas-Fort Worth as a top market for investment sales in 2019, with a 6.6% year-over-year gain to $5.6 billion, following behind the Inland Empire with a sales volume increase of 33.6% to the same level of $5.6 billion and Miami with an 8.2% increase to $3.1 billion.