X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

GRAPEVINE, TX-With a half dozen proposals to fuel talks, Pegasus Logistics Group has opted to hold tight to its five-year warehouse address by shifting the deal from sublease to direct. The hotly chased deal had 200,000 sf riding on the line.

The third-party logistics provider inked a six-year lease for the 540,000-sf DFW Trade Center at 4051 N. Texas 121, part of a summer portfolio purchase by Denver-based Dividend Capital Trust Inc. “They are very customer-oriented and are very aggressive in wanting to keep tenants,” says John Amend, founder of the Amend Group in Dallas. He tells GlobeSt.com that he had a half dozen suitors, “three of which were very, very interesting.” But J. Cannon Green, Dividend Capital’s, regional leasing director in Dallas, and the ownership “did what they needed to do,” Amend adds.

Amend says Pegasus’ new rate will be higher than what it was paying to General Cable Co. for the sublease space, “but it’s quite a bit less than the market for newer.” The company is adding 50,000 sf to the bottom line with the new deal, which keeps the warehouse close to the headquarters at 615 Freeport Parkway. The terms call for a 1,000-sf expansion to the 4,500-sf office area and some general improvements to the warehouse area.

Pegasus’ sublease was set to expire at the end of this year; the new deal kicks in Dec. 1. “We knew General Cable was expiring,” Green adds, “and we were able to make a deal with Pegasus with no down time.”

The Pegasus lease hangs a “no vacancy” sign on a warehouse that had its open space on the market for $3.40 per sf to $3.80 per sf net. In fact, the entire two million sf that Dividend bought in June is fully leased, according to Green.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.