CARROLLTON, TX-A newly formed aerospace company has stamped a 10-year lease for a 120,862-sf office/warehouse, bedding down one of the largest deals this year in Valwood Industrial Park. The plan is to open doors in May.
For the Denver-based DCT Industrial Trust, the deal for 1615 Diplomat Dr. has undercut its lease-up projection for this year's buy by nearly a year. "It's really amazing that in four months from the time they bought it that the building is leased up," says Ken Wesson, managing principal for Lee & Associates Dallas.
Wesson says a half dozen property owners were pitted against each other in the early days of the competition to get the nod from Killick Aerospace USA LLC, which now operates in temporary space near Love Field. "The deal moved really quickly once they focused on our building," he tells GlobeSt.com. He and Lee & Associates' principal Greg Nelson bargained against tenant rep, Robert Todd with City Realty Group of Dallas.
Although Wesson can't discuss financials of the stair-stepped pact, he did say the post-renovation plan was to market the space for $3.15 per sf, triple net. DCT Industrial originally projected the 5.3-acre asset wouldn't be ready for leasing until mid-2007 or later.
Wesson says DCT Industrial will invest more than $500,000 into upgrades and tenant improvements. The building, bought vacant, was in line for major capital repairs inside and out as part of the value-add acquisition plan. The office area had been gutted during the talks. The make-ready scenario now includes redoing 20,000 sf of office space and earmarking the climate-controlled balance for parts warehousing and engine testing.
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