New Lease Fuels Plan to Add 440,000 SF of Spec Space at Mountain Creek

DALLAS-Panattoni Development Co. LLC is ready to pull a three-building complex off the drawing board, now that its available space is down to 52,500 sf. The 440,000-sf project in Mountain Creek Business Park is expected to break ground in the second quarter.

The upcoming construction resulted from a three-year lease for 52,500 sf, with a solid expansion option for 4719 Mountain Creek Parkway, by Delavan, WI-based Sta-Rite Industries LLC, which had been subleasing industrial space in nearby Pinnacle Park, according to Peter Billipp with Panattoni's Texas division. "This is really the catalyst," he tells GlobeSt.com. "It was critical to get that space leased up. We're feeling very good about the need to get more product on the ground."

In a fast-turning move-in, Sta-Rite not only got half of the open space, but a one-year first right of refusal on the building's balance, Billipp says. "I really think in the next couple years there is going to be substantial growth for them," he adds. Sta-Rite is sharing the 210,000-sf office/warehouse with Jack in the Box.

Teaming with Panattoni's Texas partner Jon Napper to negotiate the deal, Billipp says the Sta-Rite dealmaker was the building's positioning along Interstate 20 on the south side of the metroplex since it is being set up as a distribution point for products manufactured in Mexico. Sta-Rite distributes submersible pumps, jets and sprinklers, sump, sewage and effluent pumps and pressure tanks.

The goal when the deal delivered was to have the space ready to run by Feb. 1, but Billipp says fast-tracked construction got the company in earlier than planned. Mark Talkington with Talkington Commercial Advisors of St. Paul and Tom McCarthy with the Staubach Co. were the tenant's brokers.

Billipp says the next wave of spec space will be a 280,000-sf bulk distribution warehouse and a set of 80,000-sf light-industrial twins. The 25-acre project tentatively is slated to deliver by year's end. The quoted rate will be $3.25 per sf, triple net for the bulk space and $5 per sf, triple net, for the light-industrial buildings. The new project effectively leaves 225 acres left to develop in the 410-acre Mountain Creek Business Park.