Off-Market Play Nets 210,000-SF Warehouse

"They came in and paid a very fair market price," Peter Billipp with the Texas division for the Sacramento-based Panattoni, tells GlobeSt.com, "and were very aggressive." The deed to the 13-acre project at 4721 Mountain Creek Parkway came with long-term tenants Jack in the Box Inc. and Sta-Rite Inc., both of which are eyeing the remaining 52,500 sf of unoccupied distribution space, according to Billipp. The San Diego-based Jack in the Box was the first one in the door in June 2002 when the structure delivered, taking down 105,000 sf for a regional distribution center fronting Interstate 20. The Delavan, WI-based Sta-Rite moved into 52,500 sf in mid-January.

Billipp says CB Richard Ellis executives Jack Fraker, Randy Baird and John Robinson pitched the plan to Capri and then knocked on Panattoni's door to see if an off-market deal could be struck. "They said they think it's a perfect match. They offered to do a full marketing if we wanted," Billipp acknowledges, "but we didn't do it." Capri has put CBRE's Corbin Crews in charge of leasing its newest asset.

In January, a Capri executive told GlobeSt.com that Dallas was high on its "buy" list for a pool of discretionary capital targeting industrial product in top-tier markets. Its first purchase from Panattoni and first in the region was a 470,250-sf warehouse at 4121 Pinnacle Point Dr. in Pinnacle Park along Interstate 30.

Billipp says it's time to pull the trigger on another building for the 410-acre Mountain Creek Business Park, which effectively is 100% leased due to the serious nature of the talks for the balance of Capri's newest portfolio piece. "It's time to get something under construction," he says, adding dirt should be flying "within three to six months."