Distributor Taps Dallas, Inks 10-Year Deal

DALLAS-After nearly nine years in Houston, Walnut Creek, CA-based Central Garden & Pet Co. is shifting its regional distribution center to North Texas. The 10-year deal for 120,000 sf hangs a "no vacancy" sign on a 480,000-sf warehouse in Pinnacle Park.

"We were as aggressive as the rest of the market has been," says Craig Jones, executive vice president with locally based NAI Robert Lynn. The pet products' supplier will move in April 1 to 4038 Rock Quarry Rd., which was being marketed at $3.15 per sf, triple net. The new deal takes Denver-based DCT Industrial Trust Inc.'s 7.5-million-sf local portfolio to 96% occupancy.

"It's close to being an as-is deal," Jones says. He and Thomas Lynn, the firm's president of corporate services, bargained against Newmark Knight Frank director Nick Cangemi in the Melville-Long Island office in New York City, former principal Daniel Frankel in Woodbridge, NJ and Rebecca Griffin, managing principal, and Wilson Stafford, associate director, both in Dallas.

Jones says a sublease tenant vacated the space at least six months ago. The building's balance is filled by International Truck & Engine Inc., a seven-year tenant.

Cangemi says the site search got under way in July 2006 after the Newmark Knight Frank team did an analysis and concluded the South Central distribution operation would be "best served" if it was situated in North Texas. "At the end of the day, we figured we'd be saving them some money, time and adding operating efficiencies by getting them into a newer facility and newer amenities," he explains to GlobeSt.com.

Cangemi says the supplier's distribution channel is based on a 350-mile radius so the relocation will put it closer to more customers. The brokers initially reviewed 28 buildings, pared it to a dozen and then narrowed it to "four or five."

Central Garden & Pet's distribution centers typically range from 100,000 sf to 160,000 sf. It currently occupies 100,000 sf at 9550 W. Wingfoot Rd.