Empty B-T-S Baits Long-Term Lease for 242,000-SF HQ, Distribution Tenant

"Start to finish, it happened very quickly, just in a few weeks," Rob Huthnance, first vice president and Dallas market officer for the Denver-based ProLogis, tells GlobeSt.com about the long-term lease for 1655 Water's Ridge. Though ProLogis labels the rate as negotiable, the eight-year-old office/warehouse sits in a newer business park in the northwest sector where rates will push the higher end of the flex industrial market. According to recent market reports, comparable space can fetch as much as $8.80 per sf.

"The building was ready to go. There were some minor things," Huthnance says. "It really matched their needs really well." The finished space will have 35,000 sf of office area and the balance retained as warehouse. The distribution center will be the primary portal for shipping Toni & Guy's "Bed Head" products and TIGI's other hair and cosmetic inventory to North and South America.

In a press release, TIGI's president and COO Thomas Reasonover says the location was the dealmaker, with easy access to Interstate 35 and ultimately the Port of Houston. "Our new agreement with ProLogis will enable us to continue to increase the efficiency of our logistics operations worldwide," he adds. Since early 2001, the firm has occupied 121,440 sf of distribution space in the Frankford Trade Center at 2828 Trade Center Dr. in Carrollton.

The Water's Ridge building went dark in late 2003 after a build-to-suit tenant filed bankruptcy, according to Huthnance. "We've had some short-term users," he adds, "but it's been a couple years since we've had long-term users in there." ProLogis' Joseph Rudd negotiated the deal with TIGI and Toni & Guy's national real estate director, Jean Reasonover.