Panattoni Prepping to Add 113,480 SF in Cedar Ridge Office Park

The decision to push ahead on more space dovetails with a second sale of a small office building and a lease close to being sealed for half of a newly delivered, 30,000-sf spec structure, says Dan Anderson, Panattoni's development manager for the 15-acre Cedar Ridge, which broke ground last year at the intersection of Carroll Avenue and Texas 114. "We've got three good prospects for half of the 30,000-sf building," he says.

Anderson tells GlobeSt.com that a half-building lease would be solid enough footing to start the larger structure, a proposed $30-million-plus project. "We're pretty confident if we build it, we can lease it," he says. In fact, he adds, there's a prospective tenant already eyeing half of the class A space, which could translate into a construction start in March.

Anderson says interest in the "for sale" and "for lease" product has met the expectations of the Texas development arm for the Sacramento-based Panattoni. "We anticipated a lot of activity," he adds, confiding that the team's been scouting the Texas 114 corridor for additional land for another office development.

The 5,990-sf buildings are being marketed at $175 per sf for shell space, including all mechanical systems. Dr. Angela Bowers of Southlake Dermatology just bought 1170 N. Carroll Ave., setting up a move from the nearby Southlake Town Square and firing up Panattoni's plan to start building more space. Kevin McGovern with Grubb & Ellis Co. in Dallas represented the buyer in the negotiations with Anderson.

Anderson is quoting $22.50 per sf plus electric for leased space. Because it's the first product of its type in the submarket, Panattoni started with the smallest building and is working its way up to the largest in the master plan, a 161,500-sf structure, also planned as "for lease" space.

O'Brien & Associates Inc. of Dallas designed Cedar Ridge Office Park. Panattoni Construction Inc. is the general contractor.