Midwest REIT Planning 1M-SF-Plus Maquiladora Development

McALLEN, TX-A Chicago REIT has made its way south of the border, closing on 71 acres to build a 1.4-million-sf park of maquiladora space. The all-development cost is expected to hit $65 million to $75 million.

"There's been a lot of success with the 'twin plant' concept, with manufacturing on the Mexican side and distribution on the US side," says James Martell, chairman and CEO of Ridge Property Trust. "We're following that." The as-yet unnamed project is located about 1.5 miles south of the International Trade Bridge, which links McAllen with Reynosa, Mexico.

The REIT will begin construction in 30 to 90 days on its first building, 180,000 sf of spec industrial space. The building will be ready for occupancy by fall. "We'll get that into Reynosa's deal flow and hopefully it'll attract interest," Martell tells GlobeSt.com. The estimated build-out is four years.

Ray Kivett, Ridge's executive vice president and chief investment officer, adds the development has stimulated a great deal of interest from potential users. "On the day we closed the transaction, we also formally responded to a request for a proposal for a build-to-suit for one client," he says. "We're responding to two more as we speak."

Ginther Construction of Reynosa is the general contractor, with an architect yet to be named. Ridge will handle leasing and sales. "We'll be working from an on-site office in the project, which is being constructed," Kivett says.

Martell says Ridge Property's move south of the border is a logical extension of its strong development activities along the border in McAllen and Mission. Since 1999, the REIT has developed nearly one million sf of industrial product in Sharyland Plantation, a venture of Dallas-based Hunt Realty Corp. "We're looking to take down an additional 30 acres in Sharyland and will probably close on that in May," he says.