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FORT WORTH-Hillwood has exercised a right of first refusal with Nokia to pick up its empty 440,492-sf, high-tech office/warehouse and 31.3 acres of undeveloped land in AllianceTexas. Hillwood developed the build to suit in 1994-95 and sold it to Nokia in 2000.

According to sources familiar with the sale of 5650 Alliance Gateway, the Cushman & Wakefield of Texas Inc. investment sales team had one offer when it asked Hillwood if it wanted to exercise its refusal right. The financial details aren’t available due to Texas’ non-disclosure standing, confidentiality pacts and Hillwood’s internal policy not to discuss price. Any price would be merely a best guess although it’s widely known that the Nokia building has 130,000 sf of top-of-the-line high-tech office space, 185,000 sf of production area and 125,000 sf of warehouse space.

Hillwood is under way with a five-million-sf spec industrial program to get some ready-to-go space on the ground. The Nokia building eases the pain from a nearly full corporate inventory in the 17,000-acre AllianceTexas, a mix of Hillwood-owned, user-owned and institutionally-owned investment-grade office, warehouse and distribution buildings. A Hillwood spokesman confirms that was the reasoning behind the bricks-and-mortar acquisition while the vacant acreage’s return to the land bank “gives us the opportunity to develop instead of another developer.”

With many AllianceTexas tenants in expansion mode, the Hillwood source says the ready-to-go space already is being eyed by an existing tenant who temporarily needs more space. The Nokia building, situated on 29.7 acres, is beside several other single-tenant office/warehouses and one multi-tenant structure. The vacant land has significant frontage along Texas 170, more commonly called Alliance Gateway Freeway. Nokia moved out in phases, completing the exit at the beginning of this year.

The C&W investment sales team was unavailable for comment. The Dallas team consisted of vice chairman Bob Edge and senior directors Jean Russo, Gary Collett and Matt Heidelbaugh along with support from Karen Decker and Mari Jones. Hillwood Properties’ senior vice president Bill Burton handled its side of the talks.

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