WILMER, TEXAS — Port Logistics Realty (PLR), a Texas-based real estate company, has begun construction on Phase 1 of Southport Logistics Park, a $500 million industrial project and one of the largest of its kind currently under development in the U.S. The project is a joint venture with Diamond Realty Investments (DRI), a wholly owned subsidiary of Mitsubishi Corp.
During the initial development phase, PLR and DRI will invest $22 million for infrastructure including a 2.5 mile interior road system, subsurface utilities, underground electrical distribution and a self-contained water distribution system with an elevated water tower. When complete, the project will span 530 acres and 9 million square feet.
“The activity surrounding South Dallas is a testament to both the North Texas region and the South Dallas submarket,” says Rob Huthnance, president of PLR Development. “We are investing in an infrastructure project that is unparalleled in scope and quality and will be a meaningful differentiator within the Inland Port area of South Dallas.”
PLR will build five buildings totaling over 3.8 million square feet in Phase 1. The first two buildings, 1.1 million square feet and 400,000 square feet, respectively, are scheduled for completion in the third quarter of 2016. The finished park will have up to nine buildings ranging in size from 400,000 to 1.5 million square feet.
Located within the Inland Port area of southern Dallas County in Wilmer, Southport Logistics Park is approximately 10 miles south of downtown Dallas directly across Interstate 45 from Union Pacific’s Dallas Intermodal Terminal, which accepts more than 1,000 shipping containers daily from the ports of Los Angeles and Long Beach for transportation to distribution centers throughout the region.
“Southport’s proximity to the Union Pacific Intermodal rail yard and the second largest FedEx hub in the United States are critical pieces of global supply chain infrastructure that offer a tremendous transportation cost advantage and will draw logistics and e-commerce users to the Southport project,” says Randy Kendrick, CEO of PLR and owner of Xebec Realty.
Val Achtemeier, Josh McArtor and Ryan Thornton of CBRE, along with James Scott of CBRE Capital Advisors, led the capital markets effort which resulted in the DRI/PLR joint venture and the balance of capital structure, including construction loan. Cornerstone Real Estate Advisers, acting on behalf of a Cornerstone-managed fund, participated in the capital structure of Phase I. Kacy Jones and John Hendricks of CBRE will handle leasing.
— Haisten Willis