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12 Last-Mile Industrial Buildings – 582,803 SF – 76% Leased
OFFERING SUMMARY
GREAT SOUTHWESTShallow Bay Industrial Portfolifo
Dallas, Texas
1170 109th Street
709 109th Street
THE OFFERINGJones Lang LaSalle Americas, Inc. (“JLL”) has been exclusively retained to offer qualified investors the opportunity to acquire the Great Southwest Industrial Portfolio (the “Portfolio”), a 582,803 square foot, 12-building light industrial portfolio located in Arlington, Texas. Currently 76% leased to 20 tenants with an average remaining lease term of 2.4 years, the Portfolio provides strong in-place cash flow with robust leasing momentum and immediate upside through lease up of the remaining vacancy. The Portfolio’s premier location in the Great Southwest submarket is highly coveted due to its exceptional access to key infrastructure, including direct access to DFW International Airport via Highway 360 and both Dallas and Fort Worth’s CBDs via Interstate 30. The Portfolio is also situated on 28.75 acres of land, 20 of which are contiguous, offering excellent optionality and long-term upside when coupled with the growth of the surrounding area.
PORTFOLIO SUMMARY
Weighted Average Lease Term2.4 Years
Square Feet582,803 SF
Occupancy 76%
Office Finish26%
Clear Height13’ – 24’
Number of Buildings12
Number of Tenants20
615 109th Street
Premier SubmarketGSW
Total Acres28.75
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1170 109th Street
INVESTMENT HIGHLIGHTSHIGHLY COVETED INFILL LOCATIONThe Great Southwest Industrial Portfolio is located just minutes south from DFW International Airport and benefits from superior highway access in and out of the DFW Metroplex via Interstate 30, Interstate 20, Highway 360, Highway 161, Highway 183, and Loop 12. The Portfolio is equidistant from Dallas and Fort Worth.
LARGE LAND ASSEMBLAGE IN SUBMARKET WITH EXTREMELY HIGH BARRIERS TO ENTRYThe Portfolio presents the rare opportunity to acquire 28.75 acres (20 of which are contiguous) in an extremely high-barrier-to-entry submarket with little-to-no developable land and robust leasing demand.
IMMEDIATE OPPORTUNITY TO INCREASE NOI SIGNIFICANTLYCurrently 76% leased to a diverse roster of 20 tenants with an average remaining lease term of 2.4 years, the Portfolio offers stable day-1 cash flow with immediate upside through lease up and mark to market.
SHALLOW BAY PRODUCT OUTPERFORMS BULK INDUSTRIALVintage (pre-2000) shallow bay product within the DFW industrial market has consistently outperformed bulk industrial product, with stable occupancy averaging 95% since 2010, outstanding historical rent growth, and reliable leasing velocity.
SIGNIFICANT DISCOUNT TO REPLACEMENT COSTReplacement cost for new shallow bay product has increased dramatically over the last 24 months and developable land sites in DFW’s top infill submarkets are virtually nonexistent, making the Portfolio a meaningful discount to replacement cost with an irreplaceable position within the market.
NATION LEADING INDUSTRIAL MARKETDFW is one of the largest industrial market in the country with 860.9 million square feet of industrial space and is the nation’s leading market in terms of net absorption, with over 24 million square feet of industrial space absorbed in 2020.
3719 109th Street 2821 E Randall Mill 621 109th Street
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109th Street Business Park 2821 East Randol Mill 3016-3030 Avenue East 1170-1180 109th Street
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1 2 3 4Property 109th St Business Park 2821 E Randol Mill Rd. 3016-3030 Avenue E. 1170-1180 109th St.Rentable Area 414,724 SF 40,000 SF 35,000 SF 93,079 SFOccupancy 82% 100% 14% 65%Submarket Lower GSW Lower GSW Lower GSW Upper GSW# of Suites 22 1 4 3Year Built 1970 1968 1961 1968Office Finish 30% 12% 45% 7%Clear Height 13' - 24' 18' 18' 16'
PORTFOLIO OVERVIEW
582,803 SFSQUARE FEET
26%AVERAGE
OFFICE FINISH
2.4WTD AVERAGELEASE TERM
13' - 24'CLEAR HEIGHT
76%OCCUPANCY
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AT&T Stadium
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Six Flags Hurricane Harbor
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CENTRAL ARLINGTON
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Galveston St
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Melissa St
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COVETED GREAT SOUTHWEST MARKET With 100 million SF of inventory, the Great Southwest/Arlington (GSW) submarket accounts for over 15% of space in the DFW market. Centrally located between the CBDs of Fort Worth and Dallas, most of the market is accessible from GSW within a 60-minute drive time, making it one of the most active submarkets in DFW.
Asking rents in GSW remain higher than the DFW market average. Because of the submarket’s longevity, a mixture of older/smaller inventory exists side-by-side with newer modern bulk facilities. Thanks to the central proximity to the rest of the market, the increased focus on last-mile delivery will continue to keep older product active and in demand for this interior submarket.
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SHALLOW BAY INDUSTRIAL PRODUCT OUTPERFORMS BULKShallow bay industrial properties – defined as vintage (pre-2000) properties under 120,000 square feet – within the DFW metroplex have consistently outperformed bulk industrial with stable average occupancy in the mid-to-high 90’s and outstanding historical rent growth.
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Shallow Bay Bulk Industrial
85%
87%
89%
91%
93%
95%
97%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Shallow Bay Bulk Industrial
DFW Industrial MarketShallow Bay Industrial vs. Bulk Industrial Rental Rates
DFW Industrial MarketShallow Bay Industrial vs. Bulk Industrial Occupancy
DFW SHALLOW BAY INDUSTRIAL HIGHLIGHTS
29% Rent Growth Since 2015
Over
54% Rent Growth Since 2010
95% Average Occupancy Since 2010
340 BPS Increase in Market
Occupancy Since 2010
#1 Performing Asset Class
High Barriers to Entry
6
East Randol Mill Road
180
Avenue E
109th Street
DOWNTOWN DALLAS
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1170-1180 109th Street
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109th Street Business Park
2821 East Randol Mill
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PRIME INFILL LOCATIONSTHRIVING DFW INDUSTRIAL MARKETComprised of 860.9 million square feet of total industrial inventory, the DFW industrial market is currently 93% leased on the heels of 24.5 million square feet of positive net absorptions in 2020, with 40% rental rate growth since 2015.
UNMATCHED CONNECTIVITYEach property within the portfolio benefits from excellent access to a robust network of major transportation arteries and strategic proximity to many of Dallas’s largest residential and commercial hubs.
POPULATION PUSHING SUPPLY AND DEMANDAccess to a DFW population of over 7 million, the 4th largest metro area in the US, offers a consistent supply of labor as well as demand for last-mile product. The DFW metro has consistently been a market leader for population growth and is projected to grow an additional 20% by 2030.
TOTAL POPULATION PER SQ 1/4 MILE 180-
467468-826
827-1,221
1,222-1,651
1,652-2,298
2,299-3,446
3,447-9,155
POPULATION DENSITY
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WHY DFW
From 2021 to 2025, DFW is projected to add 489,820 residents and 100,690 jobs, ranking second and first respectivelyin the U.S., according to Oxford Economics.
ULI’s Emerging Trends “#1 Top Market to Watch” in 2019
One of the largest concentrations of corporate headquarters in the country and has recently attracted a notable list of expansions and relocations spanning several diverse industries
Forbes recently ranked Texas #2 in Economic Climate out of all 50 states - 2019
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1,300,000NUMBER OF RESIDENTS ADDED TO THE REGION BETWEEN 2010 AND 2019
#1STATE FOR DOING BUSINESS
15 YEARS IN A ROW CEO MAGAZINE 2019
CENTRAL U.S. LOCATION FEATURING DALLAS-FORT WORTH INTERNATIONAL AIRPORT & DALLAS LOVE FIELD
BUSINESS ENVIRONMENT
SERVICED APPROXIMATELY 75,000,000 PASSENGERS
IN 2019.
SERVICED OVER 16,800,000 PASSENGERS IN 2019 AND IS
HOME TO SOUTHWEST AIRLINES.
225+NON-STOP
DESTINATIONS
92M PASSENGERS PER YEAR
IN GROWTH PROSPECTS№1
0%STATE & LOCAL
INCOME TAX RATE
8,400,000PROJECTED POPULATION OF THE REGION BY 2025
400PEOPLE MOVE TO
DALLAS/FORT WORTH EACH DAY
3.8MILLION
WORKERS
4thLARGEST
WORKFORCE IN AMERICA
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Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) has been engaged by the owner of the properties to market them for sale. Information concerning the properties described here in has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser. JLL and owner disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©2021. Jones Lang LaSalle IP, Inc. All rights reserved.
**The outbreak of the COVID-19 virus (novel coronavirus) since the end of January 2020 has resulted in market uncertainty and volatility. While the economic impact of a contagion disease generally arises from the uncertainty and loss of consumer confidence, its impact on real estate values is unknown at this stage. Given the prevailing domestic and global uncertainty arising from the Coronavirus, we recommend that the intended recipients of this information regularly seek our guidance.
2323 Victory Avenue, Suite 1200 Dallas, TX 75219 Telephone: (214) 265.0880Facsimile: (214) 265.9564
www.JLL.com
GREAT SOUTHWESTShallow Bay Industrial Portfolifo
INVESTMENT CONTACTS:
STEPHEN BAILEYManaging [email protected]
WESLEY [email protected]
DUSTIN VOLZSenior Managing [email protected]
ZANE MARCELLSenior [email protected]
PAULI [email protected]
FINANCING CONTACTS:
CULLEN ADERHOLDSenior [email protected] 469.232.1994
