Pratt & Whitney Signs Seven-Year Lease for 200,898 SF

Pratt & Whitney is the second tenant for the building at 2701 Regent Blvd., which delivered just nine months ago by local joint venture partners, Bandera Ventures Ltd. and Crow Holdings. Craig Hughes, director for Cushman & Wakefield of Texas Inc., tells GlobeSt.com that a third tenant, also stellar credit, today is poised to sign a 100,500-sf lease for the building's balance. In late December, Arizona Tile Co. moved into 100,398 sf. "It's got all the bells and whistles," he says about the design. "It was fun to lease. Within nine months, we have it 100% leased."

Pratt & Whitney will turn out lights on two warehouses in Carrollton and one in Hartford, CT yet gain 33% more space with the decision. The local consolidation is timed to coincide with lease expirations. Pratt & Whitney will move industrial product into International Commerce Park I in May and bring in office teams in June and July.

Hughes says the finish-out calls for 10,669 sf of office space, 17,858 sf of field-service area, 39,148 sf of climate-controlled inspection space and the balance staying as warehouse. The specialty finish-out will cost $2.5 million, he says. "We were willing to put significant tenant finish dollars into the deal," he explains. "We were aggressive. It's a Fortune 40 company and we wanted that deal." The space was marketed at $3.25 per sf, triple net with $3.50 per sf finish-out allowance. But in all cases, Hughes says the JV stamped deals with higher finish-outs than the quote to best projects like IDI's DFW Trade Center I and RiverPark.

"It was a relatively quick deal," Hughes says. "They very much liked the building. And, we came to terms very quickly."

Hughes teamed with C&W senior director Rick Hughes and associate director Noel Hutcheson to bargain the terms. Pratt & Whitney, a wholly owned subsidiary of United Technologies Corp. of Farmington, CT, had USI Real Estate Brokerage Services Inc.'s Bruce Dewberry in Dallas and John Luipold in Farmington running its deal.

With the building now at 100%, work has begun on a 205,000-sf distribution center, with 61 dock doors, about two blocks to the south t 1011 N. 28th Ave. Hughes says the 10.08-acre project, set to deliver in September, is carrying a $3.75 per sf net rate and operating expenses of 89 cents per sf. The finish-out allowance is negotiable. McFadden & Miller Construction Inc. of Dallas is the general contractor; Azimuth Architecture Inc., also local, designed it.