Retailer Kohl’s Corp. said Tuesday that it will build a distribution center south of Dallas in DeSoto.
The 951,000-square-foot industrial building will be near Interstate 35E and Centre Park Boulevard and will open this summer.
Kohl’s said the new warehouse will be used to fill orders from its Internet sales business.
“This new facility will ensure that Kohl’s is able to accommodate the tremendous growth of our Kohls.com business,” Ken Bonning, Kohl’s executive vice president of store planning and logistics, said in a prepared statement.
“We currently operate 84 stores in Texas and are pleased to expand our presence with this new facility,” Bonning said.
“We anticipate creating approximately 400 jobs for the community in a phased approach over the next three years.”
Kohl’s operates a dozen warehouses in the U.S. and has distribution centers for its website in San Bernardino , Calif.; Monroe, Ohio; and Edgewood, Md.
Wisconsin-based Kohl’s said it will hire about 200 workers for the DeSoto project before the building opens.
Late last winter, when it was announced that Hewlett Packard will lease 1.4 million square feet of San Bernardino warehouse space, David Burback, who runs Grubb & Ellis’ Ontario office, said it was the deal of the year.
It was a bold statement considering there was still more than 10 months of 2011 left on the calendar. But Burback was right. CT Realty Investors’ HP lease was named Industrial Lease Transaction of the Year at the annual Rexie Awards, which marks the top accomplishments in commercial real estate.
The Inland Empire Chapter of NAIOP, the trade group for commercial real estate, held its awards luncheon Tuesday. Winners in other categories included:
Industrial Portfolio Sale of the Year: Industrial Income Trust purchases four buildings totaling 1.6 million square feet
Industrial Building Sale of the Year: Manulife Financial purchases 819,004 square feet in Fontana
Industrial Land Acquisition of the Year: Alere Property Group purchases 29.51 acres in San Bernardino County
Industrial Leasing Broker of the Year: Colliers International: Steve Bellitti & Thomas Taylor Industrial Investment Broker of the Year: CB Richard Ellis, Darla Longo & Barbara Emmons Public Partner of the Year: San Bernardino County
Industrial Developer of the Year: Watson Land Company – 616,542 square foot building in Redlands
Industrial Owner of the Year: Prologis
These were the honorees in each category for both professionals and projects: Industry Leader of the Year: Doug Dupree, City of San Bernardino Fire Department; Dean Brown, Tejon Ranch; John Burroughs, Commerce Construction/Majestic Realty Co.; Matthew Hargrove, CBPA; Dennis Roy, RGA Office of Architectural Design; Ned Sciortino, Hillwood; Kevin Scott, International Code Council.
Kohl's (NYSE: KSS) said Tuesday that it will open a new distribution center in DeSoto in south Dallas County.
The Wisconsin-based department store chain had been considering DeSoto, along with other locations, in October. At the time, Dallas County was offering a 10-year, 75-percent abatement on real and business personal property.
The company said in a press release Tuesday that is entered into an agreement to build a 951,000-square-foot fulfillment center for Kohls.com at Interstate 35 and Centre Park Boulevard. The building, at Hillwood’s Crossroads Trade Center, is expected to be completed this summer, at which time Kohl’s said it would close on the agreement.
The facility is expected to initially create 200 jobs and a total of 400 over the next three years, Kohl’s said. Hiring will begin March 1.
Kohl’s, which has 84 stores in Texas, operates 13 distribution centers across the country. It expects sales on Kohls.com to reach $1 billion this fiscal year.
Commerce, GA — Hillwood Investment Properties (Hillwood), a Perot company, in a joint venture with Brookfield Real Estate Opportunity Fund II (Brookfield), has purchased Commerce 85 Distribution Center, a 962,280-square-foot Class A, state-of-the-art distribution facility located in the Atlanta metro area.
Hillwood and Brookfield plan to reposition the asset by immediately investing about $1.2 million in improvements to the building and offering the facility for lease to prospective warehousers, distributors, and manufacturers.
“We believe the Atlanta area is a high growth market, and our purchase of Commerce 85 Distribution Center brings great value to prospective tenants,” said Preston Herold, senior vice president for Hillwood. “Available incentives for eligible prospective tenants include customer choice electrical power and Jackson County tax abatements. These incentives — combined with one of the lowest combined tax millage rates in the Atlanta metro area and Hillwood's below replacement cost purchase price — result in the most competitive total occupancy cost package for a Class A building in the Atlanta metro area.”
Commerce 85 Distribution Center was built in 2007 and is located at 1523 Steve Reynolds Industrial Blvd., Commerce, Georgia. It is accessible via both the SH-98 interchange and US-441 interchange with Interstate 85.
Todd Barton, first vice president, and Greg Haynes, senior vice president of CB Richard Ellis (CBRE), represented the buyer in the purchase of the property and will also handle the leasing.
About Brookfield Real Estate Opportunity Group Brookfield Real Estate Opportunity Group is a well-capitalized and sponsored real estate fund investing in commercial real estate opportunities throughout North America. The Group was formed in 2004 and has since acquired assets exceeding $2 billion. The Group’s sponsor is Brookfield Asset Management Inc. (“Brookfield”) (NYSE: BAM). Brookfield is a leading global alternative asset manager focused on the real estate, renewable power, and infrastructure sectors.
With over $150 billion in assets under management, Brookfield has a considerable presence in commercial real estate, with approximately $70 billion under management.
About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 58 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information about the company, please visit http://www.hillwood.com/.
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The quest to replace some 10,000 jobs that disappeared when the military abandoned Norton Air Force Base in 1994 is evident today in the corporate names attached to brand new warehouses, distribution centers and a corporate jet terminal.
More than 4,000 jobs have been created or relocated to the 2,100-acre site. Nearly half are at Stater Bros. Markets' palatial headquarters and distribution center.
But the redevelopment effort hasn't come without a high price and significant hurdles.
Some $1.2 billion from taxpayers and private developers has been invested so far to redevelop the 2,100-acre base. The Inland Valley Development Agency, a group of elected officials appointed from San Bernardino County's east valley that formed more than 20 years ago to oversee reviving the base, plans to spend at least another $480 million of taxpayer funds in the next 10 years.
Officials with the IVDA and its related San Bernardino International Airport Authority have high hopes for the area to serve as a logistics hub and home to companies in need of skilled workers. The airport could have 750,000 passengers annually hustling to gates by 2015, not counting those who may land there, according to airport officials' forecasts.
Their efforts would eventually be worth $1.2 billion annually to the region's economy and $500 million paid out annually to fewer than 10,000 workers, according to a recent Cal State San Bernardino and Cal State Fullerton study looking at the economic impact of the base's redevelopment.
When Dennis Hansberger arrived on the boards of the IVDA and airport authority in 1997, he thought Norton's buildings, roads, runway and land had to be worth something, considering the vibrant economic impact the base, built in 1942, had on the surrounding area. But with the personnel gone, what remained had less than no value.
"It was a real economic learning experience for us," Hansberger said. The longtime San Bernardino County supervisor was a member of the IVDA and airport authority until he lost his re-election bid to Neil Derry, now a member of the agency's board. It took years for the IVDA to negotiate land transfers with the Air Force and millions of dollars to demolish buildings no longer up to code and clean other areas with hazardous materials.
In 1990, a largely unknown land developer, Iddo Benzeevi, was hired to be the master developer after he proposed building warehouses and distribution centers, but months later, negotiations fell apart after officials rejected his proposals over concerns about financing. Benzeevi has since raised his Inland profile, more recently with the nearly finished Skechers distribution center in Moreno Valley.
Between 1996 and 1998, a developer proposed a luxury hotel, ice skating rink and sports arena. They never happened.
In 1997, a 157-acre international trade center was scuttled after another developer missed deadlines.
DEVELOPER'S VISION
Then Hillwood Development Corp. saw an opportunity. John Magness, an executive with the company, started looking in the Inland area for space to develop in 1999, analyzing all three largely vacant Air Force bases in the region: Norton; George, also closed in the Adelanto area of the High Desert; and March, which was converted into a reserve base.
Base conversion was hardly easy, but Hillwood had done it before in Texas.
"It keeps away the competition, the more complicated it is," Magness said in a recent interview. "With chaos, there comes opportunity."
His company would lay down the infrastructure, do the marketing and craft the master plan.
The company signed its deal in 2002 with the IVDA. Hillwood signed toy-maker Mattel, its first tenant, the next year.
Hillwood, led by Ross Perot Jr., the son of one-time presidential candidate H. Ross Perot, has spent $300 million to $400 million of its own money building up the warehouse and distribution spaces on 500 acres of former base property that surrounds the airport.
The incentive: getting to buy land at a low price and "working our butts off to improve the value of it," Magness said.
Hillwood pays property taxes, much of which goes back to the IVDA, which can put the funds toward building roads or other infrastructure.
In San Bernardino, Magness said his company did what it aims to do everywhere: over-deliver and under-promise.
It was supposed to develop 2 million square feet by 2009. It did so four years early.
"We know what we're doing. We know how to market the property," he said.
Hillwood officials estimate 4,810 jobs have been created or relocated by the companies occupying 8.8 million square feet of new commercial and industrial space in and around the base, including more than 2,000 at the Stater Bros. headquarters. Hillwood has 4.8 million square feet more to build.
The university studies looking at the economic impact, though, had figures closer to 3,610. The airport, in contrast, has created roughly 500 jobs, largely through aircraft maintenance firms such as Certified Aviation Services, which has contracts to maintain Virgin America's fleet.
The Texas company plans to start construction before the end of the year on another 950,000-square-foot space south of the runway. Magness said he expects to be done building in three to five years.
REDEVELOPMENT
Perhaps no one has reused former Norton Air Force Base property in a more pure sense than Kelly Space & Technology, the first business to move in after the base closed. While others may have been turned off by the thick, explosives-resistant glass and control rooms that would have cost a hefty sum to tear out or rehab, Kelly Space CEO Mike Gallo saw exactly what he wanted.
"I knew this was a gem," he said.
There his company could test jet engines and rockets or conduct more down-to-earth experiments on items such as flat-screen televisions, cellular phones by testing their resistance to heat, sandstorms, humidity, air pressure changes and more.
"We get to blow things up. We get to fire bullets at things," he said recently. A flight simulator chamber was converted into a vibration bay that can help product manufacturers find out whether their goods will handle a shaky trip in the back of a semi-truck without being damaged.
What if a company wanted to ship its product by boat? Kelly Space tests what the salty and foggy conditions might do.
KNEW THE TURF
Gallo was a second lieutenant in civil engineering stationed at the base from 1980 to 1984. He started Kelly Space in 1993 and moved it to Norton a year later, starting with a 500-square-foot office with eight employees and growing into five buildings on 30 acres with about 50 workers. Including his nonprofit Technical Employment Training Inc. trade school, he leases six buildings, including the base's old 10,000-square-foot retail store.
With a 20-year lease through 2014 with options to renew in 10-year increments thereafter, Gallo has no intention of taking his company anywhere else.
Besides Gallo, there have been numerous investments at the base by agencies and businesses that recognized its value.
From 1994 through July, the Inland Valley Development Agency and airport authority have been given $170.5 million in federal, state and local grants, with the Federal Aviation Administration providing more than a third. The local agency and airport authority paid $10.2 million to match those grants.
Stater Bros. spent more than $300 million to build its headquarters.
The grocery chain had wanted to consolidate its operations, which were spread across 11 buildings in three cities. When word got out that the company was looking for space, "any number of people became our new best friend," said Bruce Varner, legal counsel for the grocer.
WELL LOCATED
Jack Brown , Stater Bros. CEO and chairman, ultimately chose Norton, where he said he had spent many hours at the officer's club as a child with friends whose parents served at the base at the time. But Brown didn't move his headquarters there solely for sentimental reasons, he said. He's near interstates 10 and 215 and Highway 60.
"It was a good, solid business decision," he said.
He thinks airlines are missing out on an opportunity, he said. He has written to Southwest Airlines to tell the company about the airport in Stater Bros.' backyard.
Even though his company doesn't necessarily need a passenger airport around the corner, he said landing an airline should be the No. 1 priority for the sake of the community.
But reusing the runway by creating an airport and luring a commercial airline has proved difficult.
Jim Monger, 76, was San Bernardino airport's aviation director until he retired to Montana in 2000.
He said the airport chased every airline it could in those days, including Southwest and United. His preference was always to build up air cargo service. UPS came to look at the airport, but the runway at the time was visibly crumbling, he said.
"Ontario (International Airport) was ready for them and we were not," he said.
In 1998, Casino Express Airlines began short-lived twice-monthly flights between the airport and casinos in Elko, Nev. The $43 round-trip fare in some cases included a night's stay at the airline owner's Nevada hotels. Less than a year later, the airline had stopped flying out of San Bernardino as well as Burbank, San Diego and Santa Barbara, saying that the growth of nearby tribal casinos made Inland gamblers less apt to fly for a chance to win big.
"About every time we thought we had somebody cinched down to be a complete user of it, we had to do work on the runway," he said. In 2004 and 2005, the airport finally rehabilitated the runway with $36 million in federal funding.
When it was hired to be the master developer of the base in 2002, Hillwood also had the rights to develop the airport, so it marketed San Bernardino as a destination for companies that make airplanes or aircraft components, Magness said.
"Most of them have written off California," he said, opting to operate in Mississippi, Texas, South Carolina , Alabama and elsewhere. "We tried," he said, adding that the company also had lengthy meetings with Boeing.
"Early on, we cast a very, very wide net," he said.
Given the 10,000-foot runway, officials debated creating a cargo airport to suit a company such as UPS or a commercial airport to serve travelers.
A FORTUNATE LOSS
German shipping giant DHL scouted Southern California for a warehouse hub, but in 2004 San Bernardino airport lost in a bidding war to March Air Reserve Base. DHL eventually gave up on its North American air cargo operations and has left its massive shipping center in Riverside deserted since December 2008, only recently sub-leasing it to an aircraft parts manufacturer.
Nearly everyone connected with Norton's redevelopment calls it the best loss they've ever experienced.
After it became clear that the agencies wanted to focus on developing a commercial airport for passengers, Hillwood gave up its rights to develop it. Cargo airports are what they build, Magness said.
The IVDA's sister agency, the San Bernardino International Airport Authority, awarded two no-bid agreements in 2007 to first-time airport developer and convicted felon Scot Spencer, who promised to bring in an airline.
RAVES, MISGIVINGS
The Million Air corporate jet facility that Spencer developed is "marvelous," Monger said. So is the commercial development Hillwood built around it, he said. Monger has been less impressed with the passenger terminal. It has cost the Inland Valley Development Agency more than $100 million to build the four-gate passenger terminal, but the airport authority hasn't landed an airline.
In the meantime, traffic at nearby Ontario International Airport has fallen off by more than a third since 2007.
Every night between 9:30 and 10, Hansberger, the former San Bernardino County supervisor, takes his dog into his Redlands backyard for one last "visit" before morning and he counts the airplanes going west toward Ontario airport or LAX.
A year and a half ago, he could reliably count six planes within two or three minutes each night. Now it's rare that he sees one, he said.
Hansberger blames the economy and says it's the same reason why no commercial airlines have flown to the San Bernardino airport. Nonetheless, he is as committed today to seeing the airport take flight as he was when he was on the board.
"If we can't succeed today, we should be ready to succeed when the time comes," he said. "It's an asset we can't get back," he said.
While it’s not the wild west of a few years ago, national industrial developers are growing in the Memphis market through build-to-suit deals and acquisitions as they wait until the market is ripe for speculative building.
The latest example is Hillwood Investment Properties, which is growing its local industrial portfolio through acquisition.
The Dallas-based commercial developer has a contract to purchase a 605,427-square-foot warehouse in Olive Branch. It is scheduled to close near the end of the year.
Mazda North America Inc. owns the building at 9105 Hacks Cross Road and has been using it as a parts distribution operation. Built in 2000, the property sits on 66 acres at Stateline Road and Hacks Cross.
Hillwood has developed 4.1 million square feet of industrial space in the Memphis market, all in the DeSoto County submarket. The company has enough land to build another 7 million square feet of industrial space.
Toby Rogers, vice president at Hillwood, had no comment on the pending purchase.
If the sale goes through, the building would represent one of the largest vacancies the market has, according to Brad Kornegay, president of Colliers International Memphis’ asset services division.
“The options for larger spaces are becoming fewer and fewer,” he says. “In the absence of building any speculative buildings, which is not planned for the near future, having a 605,000-square-foot building would be good for the market.”
If a tenant is looking for a minimum of 400,000 square feet of warehouse or distribution space, there are only a handful of options in Shelby County and DeSoto County, Kornegay says.
“We used to have several options for users to look at and analyze,” he says. “We just don’t have that many anymore.”
Southeast Memphis and DeSoto County have seen good industrial leasing activity this year, with Cummins Inc., Nike Inc., CEVA Logistics U.S. Inc. (1.27 million square feet) and Newegg Inc. (414,960 square feet) all absorbing space.
If this continues as many expect, large industrial space could be at more of a premium.
While the Mazda building could provide some space, a developer such as Hillwood would probably have to make some changes, such as adding dock doors or truck parking, to make it more marketable to a wider range of users.
Grubb & Ellis Co. vice president John Pomer and Grubb & Ellis Memphis executive vice president Scott Pahlow are the property’s listing brokers.
Expanding through build-to-suits While Hillwood looks to expand its local footprint through acquisition, Industrial Developments International Inc., is expanding through a build-to-suit project.
In August, the Atlanta-based company started building a 234,660-square-foot warehouse and distribution center for Anda Distribution in Olive Branch. The $23 million project will open at IDI’s Crossroads Distribution center in 2012.
The company will apply for LEED certification of the property at 8644 Polk Lane when completed.
In 2005, IDI purchased 475 acres in Olive Branch from Dunavant Enterprises for $16 million. The property at the intersection of Polk Lane and Stateline Road, dubbed Crossroads Distribution Center, gave the company enough land to build 7 million square feet of industrial space.
IDI built several Class A bulk warehouse properties, including one of the last speculative industrial buildings in the Memphis market. That property, Crossroads Distribution Center A at 9124 Polk Lane, was completed in 2008.
The 452,743-square-foot Class A bulk warehouse building is leased by Smiths Medical ASD Inc., which occupies 240,000 square feet.
Hillwood’s play for the Mazda building is a good example of a company building its inventory, but not developing product.
“With this acquisition, they’re buying core assets in markets they have a presence in,” Tim Moore, vice president of leasing with IDI, says. “It seems like a reasonable acquisition.”
Rate increase needed for spec building While industrial leasing activity has been healthy, it would take an increase in rental rates across the board to justify a reappearance of speculative building, according to Moore.
“I think you’ll see that pressure on rates in the large bulk segment of the inventory before you see it in other parts of the overall inventory,” he says. “I think we’re closer than we were a year ago, but I don’t think we’re quite there yet. The vacancy rates are looking good; we just need pressure on rental rates.”
The average asking lease rate in the overall Memphis market has remained flat. In mid-year 2010, the average asking rental rate was $3.99 per square foot, according to Xceligent Inc. This included triple net leases for bulk warehouse, standard warehouse and flex space. At mid-year 2011, the average asking lease rate had increased to $4.02 per square foot.
This, paired with a slow national economy, has stopped national players like Hillwood, IDI, Panattoni Development Co. and ProLogis from expanding their Memphis-area footprint with speculative building.
However, the opportunities to acquire property and do build-to-suit projects are keeping industrial growth alive locally, both for national companies and more regionally focused firms.
An example is Jackson, Tenn.-based H&M Co. and its development partner, Olive Branch Partners. The two companies developed a 520,000-square-foot distribution center for Asics America Corp. at Chickasaw Trails Industrial Park in Marshall County.
The partner companies are looking for more build-to-suit projects for lease or ownership with room to construct 5 million square feet in that park.
Industrial activity in the greater Memphis area, paired with Chickasaw Trails’ location adjacent to the future I-269, should help fill up that park, according to Roger Cook, senior vice president with H&M.
“I think it’s great to see these building being purchased and tenants being brought in,” he says. “I can’t help but believe Memphis will still attract a lot of large build-to-suit and lease projects.”
NEWVILLE, PA — Hillwood Investment Properties (Hillwood) announced today that it has purchased Key Logistics Park (Building C), a 1,170,000 square foot warehouse/distribution facility in Newville, Pennsylvania. Constructed in 2009, the facility resides on an 80-acre site conveniently located off I-81 at Exit 37, near the junction of a major distribution route serving a number of large population centers in the northeastern United States.
The property resides in the Central Pennsylvania logistics corridor with easy access to area truck terminals, the FedEx and UPS Freight facilities and Norfolk and CSX terminals. The property has one tenant, Office Depot, leasing 600,000 square feet in 2010. The remaining 570,000 square feet is available for lease and is currently the only available Class A vacancy greater than 500,000 square feet in the Central Pennsylvania market.
“Hillwood is pleased to add Key Logistics Park to our investment portfolio in the central Pennsylvania market,” said Gary Frederick, Senior Vice President with Hillwood Investment Properties. “We are focused on locations, like Key Logistics Park, that will provide significant operational advantages to our clients and create growth in the marketplace. We are confident Key Logistics Park will achieve these goals.”
CB Richard Ellis in Harrisburg, PA, led by Michael Hess, Senior Vice President, Patrick M. Lafferty, Senior Vice President and Bart Anderson, Vice President, were brokers on the deal. The same CB Richard Ellis team is currently marketing the 570,000-square-foot vacancy for lease.
Key Logistics Park is located at 950 Centerville Road in Newville, Cumberland County, Pennsylvania.
About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 65 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia. For additional information about the company, please visit www.hillwood.com.
Hillwood Investment Properties, a Texas company owned by businessman and former presidential candidate H. Ross Perot Sr., today announced it purchased the warehouse at Key Logistics Park in Cumberland County.
The Penn Township warehouse is home to a 600,000-square-foot distribution hub for Florida-based retailer Office Depot. The building has more than 500,000 square feet left for lease. Hillwood is searching for a tenant for the vacant side of the building, said Gary Frederick, the company's senior vice president.
"There's good activity in the market, so we're optimistic we'll find another deal to fill it up," he said.
Hillwood has not bought any of the other sites at the logistics park built in 2008. Two more buildings are planned to give the park nearly 3 million square feet of warehousing.
The acquisition is the second in the midstate for Hillwood in less than a year. Last June, the company bought the 600,000-square-foot Key Distribution Center in Carlisle and renamed it Carlisle 44 Trade Center. Wisconsin food company Bay Valley Foods leased the center in January.
Hillwood also owns 1.4 million square feet of warehouse space in Lebanon County leased to food manufacturer General Mills and is seeking more acquisitions in Central Pennsylvania, Frederick said.
Hillwood Investment Properties (Hillwood), a Perot company, has purchased Key Logistics Park (Building C), a 1.17 million square foot warehouse/distribution facility in Newville, PA. The price paid for the asset was not immediately available.
Constructed in 2009, the facility resides on an 80-acre site located off I-81 at Exit 37, near the junction of a major distribution route serving a number of large population centers in the northeastern United States.
The property resides in the Central Pennsylvania logistics corridor with access to area truck terminals, the FedEx and UPS Freight facilities and Norfolk and CSX terminals. The property has one tenant, Office Depot, leasing 600,000 square feet in 2010. The remaining 570,000 square feet is available for lease and is currently the only available Class A vacancy greater than 500,000 square feet in the Central Pennsylvania market.
Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia.
DALLAS — ING Clarion Partners (ING Clarion) and Hillwood Investment Properties (Hillwood) announced today that they have leased a combined 2,235,948 square feet in recent months at four properties in the Dallas-Fort Worth area: Skyline Business Park in Mesquite, TX, 3737 Miller Road in Garland, TX, Lakeside Trade Center in Flower Mound, TX, and Trade Point Business Park in Coppell, TX.
“Hillwood’s relationship with ING Clarion, the brokerage community, and our tenants allowed for the success we enjoyed this past year,” said Toby Rogers, vice president for Hillwood Investment Properties. “We are especially proud to welcome our new clients and appreciate our existing tenants choosing to work with us and remain with us as valued customers.”
Hillwood is pursuing Leadership in Energy & Environmental Design (LEED®) Gold Certification for commercial interiors on Building Five at Lakeside Trade Center, the new home to Nature’s Best, the largest privately owned, wholesaler-distributor of health and natural food products in the natural products industry. This 308,200 square foot deal was consummated at Lakeside Trade Center, Building Five in Flower Mound, Texas. Nature’s Best was represented by Mark Collins and Kirk Collins of Cushman & Wakefield of Dallas.
Another notable deal for 2010 involved relocating three tenants (Mohawk, T&L Holdings, and BFS) from Tradepoint Business Park to Lakeside Trade Center to accommodate Uline, Inc.’s 600,000 square foot requirement in Coppell. The deal totaled 998,000 sf in leases. Uline, Inc. is a distributor of shipping, industrial and packaging materials to businesses throughout North America and was represented by Dave Anderson, executive vice president for CB Richard Ellis. Jim Brice, Partner at Holt Lunsford Commercial, represented the landlord at Tradepoint Business Park.
“We definitely saw a pick-up in leasing activity toward the end of year, thanks to an improving economy and the fact we had top properties available for lease as businesses decide the time is right to make space commitments,” said Jeanna Camp, senior vice president for ING Clarion.
At Lakeside Trade Center in Flower Mound, Mohawk Carpet leased 258,372 square feet in Building Four and was represented by Tom McCarthy, managing director for Jones Lang LaSalle Americas; T&L Holding Corporation leased 70,100 square feet in Building One and was represented by Tyson Erwin, executive vice President for NAI Robert Lynn; and BFS Services leased 70,000 square feet in Building One and was represented by Jeff Boykin, president of Boykin Partners. Mark Miller and Chad Albert of NAI Robert Lynn represented the landlord at Lakeside Trade Center.
At Skyline Business Park in Mesquite, 457,076 square feet was leased to Hayes Retail Services in Building One. Hayes Retail Services offers services in logistics, warehouse distribution, freight consolidation and fulfillment, international sourcing services and custom powder coating. Jake Marks and John Hendricks of CB Richard Ellis represented the landlord on this transaction.
Shippers Warehouse Inc., a provider of asset-based third-party logistics services, leased 472,200 square feet at 3737 Miller Road in Garland. Trip Leon, Al Leon, and Larry Leon of Logistics Realty represented Shippers Warehouse Inc. Michael Grant and Ryan Wolcott of TIG Real Estate Services represented the landlord.
About ING Clarion Partners Founded in 1982, ING Clarion Partners and its affiliates manage $39 billion in real estate assets in both the private and the public equity sectors. ING Clarion is the Americas arm of ING Real Estate Investment Management, one of the world's leading real estate investment managers with global assets under management of more than $ 89 billion and operations in 21 countries. More information about the firm is available at www.ingclarion.com.
About Hillwood Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 65 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. Hillwood is best known for its Alliance brand that includes the 17,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center and 2,000-acre AllianceCalifornia. For additional information about the company, please visit www.hillwood.com.
Carlisle will receive a needed job boost in the coming months.
Hillwood Investment Properties announced Tuesday in a news release that it has leased a logistics/distribution property of more than 600,000 square feet on Ritner Highway to a Wisconsin-based food manufacturer.
"We are pleased to welcome Bay Valley Foods to Carlisle 44 Trade Center," said Hillwood Senior Vice President Gary Frederick, adding that at least 50 jobs are expected to be created.
Carlisle 44 Trade Center, once called Key Distribution Center, will be updated for Bay Valley Foods by Hillwood as part of the lease agreement.
Hillwood, a Perot company, will pursue LEED (Leadership in Energy and Environmental Design) certification, Frederick said.
Bay Valley, owned by TreeHouse Foods, is a producer of private label shelf stable food products for North American retail grocers.
Located on a 45.2-acre tract of land at 1700 Ritner Highway, the distribution center was constructed in 2007 by Higgins Development. It has sat vacant since then.
The building features 602,500 square feet of space, 32-feet-high ceilings, large dock doors and public utilities, and the property also features 328 parking spaces for automobiles and 199 trailer spaces.
There are also two access drives that connect the property to Ritner Highway. Both intersections are signalized.
How many jobs?
Ron Bottrell, spokesperson for Bay Valley, said it's still too early to say exactly how many jobs will be created. Bay Valley officials are negotiating a contract with a third-party contractor that will handle employment.
Bottrell said the company will discuss job numbers once that deal is finalized.
"We're probably still a couple weeks from during that," he said.
However, Frederick said 50-plus jobs will likely be created at the facility.
Hillwood bought Carlisle 44 Trade Center last June.
Frederick said at the time it was purchased because of its close proximity to Interstate 81 and the Pennsylvania Turnpike.
Approximately 100 million consumers reside within an eight-hour drive of Carlisle, while the area, including nearby Mechanicsburg, Harrisburg and Camp Hill, can provide a large labor force, Frederick added.
Frederick said Bay Valley too saw Carlisle as a prime location because of the nearby major highways.
"Bay Valley Foods was a natural fit for us, as both companies focused on the optimal logistics location in Carlisle. We are confident that our relationship will create opportunities for economic growth in the central Pennsylvania market," Frederick said.
CARLISLE, PA — Hillwood Investment Properties (Hillwood) announced today that it has leased Carlisle 44 Trade Center, a 602,500 square foot Class-A, industrial logistics/distribution property, to Bay Valley Foods, a Green Bay, WI based producer of a large variety of private label shelf stable food products for the North American retail grocery and food away from home markets.
“We are pleased to welcome Bay Valley Foods to Carlisle 44 Trade Center,” said Gary Frederick, Senior Vice President with Hillwood Investment Properties. “Bay Valley Foods was a natural fit for us, as both companies focused on the optimal logistics location in Carlisle. We are confident that our relationship will create opportunities for economic growth in the central Pennsylvania market.” As part of Bay Valley Foods’ tenant improvement construction at Carlisle 44 Trade Center, LEED (Leadership in Energy & Environmental Design) certification will be pursued.
Carlisle 44 Trade Center is located at 1700 Ritner Highway, in Carlisle Borough. Constructed in 2007, the facility resides on a 45.2-acre site conveniently located off I-81 at Exit 44, near the junction of the Pennsylvania Turnpike and I-81, which are major distribution routes through Pennsylvania serving a number of large population centers in the northeastern United States.
Chicago-based Lowenbaum REP, Inc. and its partner, Cushman & Wakefield, represented Bay Valley Foods in its regional search.
“The Garibaldi Group has worked on behalf of Hillwood to market Carlisle 44 Trade Center on a national basis. We expect a great relationship that benefits all parties,” said Michael Bartolacci, Senior Vice President of The Garibaldi Group.
The Garibaldi Group, based in Chatham, NJ, led by Michael Bartolacci, Jerry Moore, Chuck Bower and Gene Preston, represented Hillwood on the lease. Hillwood purchased the property (formerly Key Distribution Center) in June 2010, and was again represented by The Garibaldi Group.
About Bay Valley Foods Bay Valley Foods is a food manufacturer servicing primarily the retail grocery and foodservice channels. The products of Bay Valley Foods and its affiliates include non-dairy powdered coffee creamer; canned soup, salad dressings and sauces; sugar free drink mixes and sticks, instant oatmeal and hot cereals; macaroni and cheese, skillet dinners and other value-added side dishes and salads; salsa and Mexican sauces; jams and pie fillings under the E.D. Smith brand name; pickles and related products; infant feeding products; and other food products including aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer. Bay Valley Foods believes it is the largest manufacturer of pickles and non-dairy powdered creamer in the United States and the largest manufacturer of private label salad dressings, drink mixes and instant hot cereals in the United States and Canada based on sales volume. Bay Valley Foods LLC is a wholly owned subsidiary of TreeHouse Foods, Inc. (NYSE:THS). Bay Valley Foods owns all of the operating assets of TreeHouse directly or through Bay Valley Foods subsidiaries.
A record number of containers moved across Jacksonville docks in 2010 marking its second year high, up 10 per cent year on year to 846,580-TEU.
The volumes were attributed to a record number of ships at 1,947 to the end of September, and its retention of its title as the second busiest vehicle handling port in the US at 519,000 vehicles.
According to port authority of Jaxport, its six per cent revenue increase to US$51.2 million compared to year previous high of $48.4 million, reports Arlington, Virginia-based Transport Topics.
Tonnage highs reached 8.1 million tons. Breakbulk cargo of steel and paper remained resilient in downturn, increasing 28 per cent to 990,000 tons contrasted by bulk, which dropped 11 per cent to 1.5 million tons.
Leggett & Platt Lease 334,000 Sq. Feet at Northgate Building 11
San Bernardino, CA — Hillwood Investment Properties (Hillwood) announced today that it has leased 334,646 square feet of the 609,499-square-foot building at AllianceCalifornia Northgate Building 11 to Leggett & Platt (NYSE: LEG), a diversified manufacturer that conceives, designs and produces a broad variety of engineered components and products that can be found in most homes, offices, and automobiles.
“We are proud to welcome Leggett & Platt to AllianceCalifornia, further identifying the redevelopment of the Norton Air Base as the premier industrial park in Southern California,” said John Magness, Senior Vice President for Hillwood. “Leggett & Platt’s operations will be critical to bringing jobs and increased tax base to the AllianceCalifornia property and San Bernardino County.”
The company will be hosting a grand opening at the facility today at 3:00 p.m.
AllianceCalifornia Northgate Building 11 was constructed in June 2009 and was purchased by Hillwood in December 2009. It is located at 7776 Tippecanoe Ave., San Bernardino, CA.
“We are excited about our company’s expansion into the San Bernardino market,” said Bill Hardy, Director of Distribution and Transportation Services, for Leggett & Platt. “This is an excellent property and we welcome the opportunity for growth in the area as we reach our West Coast customers and secure our inbound supply chain.”
About Leggett & Platt Leggett & Platt (NYSE: LEG) is a diversified manufacturer (and member of the S&P 500) that conceives, designs and produces a broad variety of engineered components and products that can be found in most homes, offices, and automobiles. The company serves a broad suite of customers that comprise a "Who's Who" of U.S. manufacturers and retailers. The 127-year-old firm is comprised of 19 business units, 20,000 employee-partners, and more than 140 manufacturing facilities located in 18 countries. Leggett & Platt is the leading U.S. manufacturer of: a) components for residential furniture and bedding; b) components for office furniture; c) drawn steel wire; d) automotive seat support and lumbar systems; e) carpet underlay; f) power foundations; and g) bedding industry machinery.
Hillwood Expands Alliance Brand to Former Florida Military Base In Agreement as Master Developer
Real Estate Developer and The City Of Jacksonville
Work Together To Bring Jobs, Expanded Tax Base to Cecil Commerce Center
DALLAS-FORT WORTH — Hillwood announced today that it has completed an agreement with the City of Jacksonville, Florida to serve as Master Developer of 4,474 acres at Cecil Commerce Center, which is a portion of the former Naval Air Station Cecil Field, and will bring its premier Alliance brand to the East Coast. Hillwood will work with the City’s Jacksonville Economic Development Commission to direct redevelopment and rebrand the property as AllianceFlorida at Cecil Commerce Center. Hillwood brings its private capital, development expertise and marketing relationships to attract first-class companies to Jacksonville.
“Jacksonville is pleased to welcome Hillwood as Master Developer of Cecil Commerce Center,” said Jacksonville Mayor John Peyton. “With Hillwood’s expertise and capital investment, we expect Cecil to realize its full potential for creating jobs and expanding the tax base.”
Hillwood will attract companies that will create jobs and promote economic development for the City of Jacksonville. During the term of the Master Developer Agreement, the development is projected to add at least $425 million to the City’s tax base — and potentially more than $648 million as economic conditions improve. The expanded tax base could generate $50 million to $88 million in new tax revenue for the City of Jacksonville over the 25-year term of the Master Development Agreement.
“The successful development of AllianceFlorida is important for Jacksonville’s economic growth and long-term success, and Hillwood will work tirelessly to achieve that goal,” said T. Preston Herold, Vice President of Hillwood Investment Properties.
“We believe Jacksonville, by virtue of its central demographic location in the Southeast region, holds an enormous amount of economic potential. The investment of Hillwood’s capital, development experience, and marketing relationships into this terrific project will allow the City and its businesses and residents to benefit for years to come.”
Herold will lead development activities at AllianceFlorida at Cecil Commerce Center.
Engaging Hillwood as Master Developer means the City will transfer the capital burden associated with developing the property to Hillwood yet benefit from accelerated job growth and an expanded tax base. The cost to develop the 2,800 developable acres is estimated at more than $1.3 billion.
The City of Jacksonville, through the Jacksonville Economic Development Commission, selected Hillwood after soliciting proposals from 184 local and national developers. Hillwood’s development and investment track record in Texas, California, Hawaii, Wyoming, Mississippi, Pennsylvania, Georgia and Florida gave the City of Jacksonville confidence in the company’s ability to make the property a success.
Hillwood will establish an office and marketing center on the property and is already actively marketing the development to prospective companies.
AllianceFlorida will be the second expansion of the Alliance brand. Hillwood reserves the Alliance brand for large scale, long term, public-private projects, and Hillwood’s customers recognize Alliance projects as well-located, multimodal, first-class developments where value is maximized. The internationally renowned AllianceTexas, established in 1988, was the first Alliance development and anchored the growth of Hillwood into other investment and development opportunities and markets.
AllianceTexas has had a $36.4 billion overall economic impact for North Texas, attracting 230 companies, creating 28,000 jobs for the area, and $731 million in tax revenue since 1990. AllianceCalifornia, a redevelopment of the former Norton Air Force Base, has had an overall $1.1 billion economic impact for the City of San Bernardino, drawing 11 companies to the area and creating over 4,000 jobs since 2002.
About Hillwood
Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 65 companies listed on the Fortune 500, Global 500 or Forbes List of Top Private firms. For additional information about the company, please visit www.hillwood.com.
HILLWOOD ACQUIRES 602,500 SQUARE-FOOT INDUSTRIAL BUILDING AT KEY DISTRIBUTION CENTER IN PENNSYVLANIA
Real Estate Developer Eyes Growth in Pennsylvania through New Acquisition
CARLISLE, PA (June 22, 2010) — Hillwood Investment Properties announced today that it has acquired a 602,500 square-foot industrial building at Key Distribution Center in Carlisle, Pa. Hillwood currently owns a number of commercial properties throughout Pennsylvania. This acquisition will further solidify its presence in the market and contribute to the company’s growth in the area.
“With the challenges of the current economy, Hillwood is focused on identifying the right investment and growth opportunities,” said Gary Frederick, Senior Vice President with Hillwood Investment Properties. “We are pleased to acquire a state-of-the-art distribution facility that will expand our presence and commercial activities in central Pennsylvania. The building is available for immediate occupancy and we will be aggressively marketing it to prospective tenants.”
The Class A industrial property is located at 1700 Ritner Highway, also known as U.S. Highway 11, in Carlisle. Constructed in 2007, the facility resides on a 46.3-acre site conveniently located between the Pennsylvania Turnpike and I-81, which are major distribution routes through Pennsylvania serving a number of large population centers in the northeastern United States. Approximately 100 million consumers reside within an eight-hour drive of Key Distribution Center in Carlisle.
Hillwood acquired the property from a joint venture between Higgins Development Partners and Pritzker Realty Group, both based in Chicago, Ill. Michael Bartolacci, Gerald Bower, and Jerry Moore of The Garibaldi Group helped negotiate the transaction.
Despite tough economic conditions, Hillwood continues to seek strategic acquisition opportunities across the nation.
“This purchase reflects Hillwood’s commitment to making strategic decisions that not only make good business sense, but good sense for our local communities.” Frederick added. “Our latest investment in Pennsylvania represents the type of acquisitions and growth on which Hillwood will continue to focus.”
Hillwood, a Perot company, is ranked as one of the top commercial real estate investors and developers in the country and the top residential developer in Dallas-Fort Worth. The company's developments currently house facilities for 65 companies listed on either the Fortune 500, Global 500 or Forbes List of Top Private firms. In addition to AllianceCalifornia, Hillwood is best known for its development of the 17,000-acre AllianceTexas project, located 15 miles northwest of DFW Airport, and the $420-million American Airlines Center and the Victory district near downtown Dallas. For additional information about the company, please visit www.hillwood.com.
The task of bringing long-awaited jobs to Cecil Commerce Center officially fell on Dallas-based Hillwood when the Jacksonville City Council voted Tuesday to make Hillwood the center’s master developer.
The 16-0 vote capped a year of negotiations that started last summer when the city tapped Hillwood as the top-ranked applicant for the role of master developer.
Despite opposition that came mainly from businesses doing industrial development in Jacksonville, council members have said the commerce center needs a master developer and Hillwood has a track record of success.
“We’re looking forward to them getting busy out there,” Councilman Ronnie Fussell said Tuesday night.
The master developer contract will last up to 25 years and cover as many as 2,800 acres. As Hillwood attracts businesses, the company will purchase tracts of land from the city for construction of distribution centers and warehouses.
Hillwood will call its project Alliance Florida, the same “premier brand” the company affixed to its Alliance Texas and Alliance California mega-developments. Alliance California is at a former Air Force base in San Bernardino.
Opponents of the contract argued the negotiations between Hillwood and the Jacksonville Economic Development Commission resulted in the city agreeing to sell land on the cheap.
Though some council members said the price would probably be higher if the city were just selling land in a straight land deal, they said the price is part of a much larger agreement that requires Hillwood to develop the center or lose its right to the contract.
Mayor John Peyton has supported making Hillwood the master developer, saying the city cannot afford to maintain the “status quo” at the commerce center.
The city and the Jacksonville Aviation Authority took ownership of the commerce center in 1999 from the Navy after the federal government closed the military base. Hillwood will be the master developer of city-owned land at the center. The aviation authority’s land is not covered by the contract.
After winning the hard-fought battle to be master developer of Cecil Commerce Center, Hillwood faces a tall order in translating that political success to where it counts on the ground — construction of industrial buildings.
Hillwood, a Dallas-based company that is among nation’s largest industrial developers, will be in charge of bringing businesses to land where the city attracted just two companies in the past 11 years.
“We’ve got to deliver on our promises now,” Preston Herold, vice president of Hillwood Investment Properties, said after City Council approved the master development agreement Tuesday night.
Herold said Hillwood has talked with a couple of businesses about locating at Cecil Commerce Center. He said Hillwood wanted to get the master development approved before moving ahead with those discussions.
“That will be job number one — getting back to those folks,” he said.
Herold will move to Jacksonville to lead Hillwood’s marketing of the commerce center. He said Hillwood will set up its office in a former Navy building at the commerce center. The city and the Jacksonville Aviation Authority obtained thousands of acres of land from the federal government in 1999 after the Navy base closed.
One change that will take effect immediately when Hillwood takes over as master developer is real estate brokers will be able to earn fees when their clients decide to locate at the commerce center. The city hasn’t paid broker fees, but brokers will have a financial incentive to have their clients consider Cecil when Hillwood is on board.
The master development agreement with Hillwood can run for up to 25 years, but it establishes a series of benchmarks for development that Hillwood must meet along the way or else it will lose the contract. Those requirements are based on the square footage of construction.
Within three years, Hillwood must construct a 400,000 square foot building, regardless of whether Hillwood has tenants for the building or not.
In 10 years, it must have built 2 million square feet, and by the end of 20 years, the total tally must be at least 7 million square feet.
Since 1999, the city has struck two deals at the commerce center by selling land for the 1 million square foot Bridgestone Americas Tire Operation center and the 235,000 square foot Saft high-tech battery manufacturing plant.
City Councilman Daniel Davis, whose Westside district includes the commerce center, said he isn’t expecting Hillwood to come roaring out of the gate.
“We all know what kind of economic environment we’re in,” he said.
But he said he’s confident that Hillwood’s connections with industrial businesses will result in tenants and jobs coming as they building are built.
“I’m measuring success as consistent takedown of lots and consistent new job creation at Cecil,” he said.
The City Council voted 16-0 Tuesday to make Hillwood the center’s master developer. The unanimous support capped a year of negotiations that started last summer when the city tapped Hillwood as the top-ranked applicant for the role of master developer.
The master developer contract will cover as many as 2,800 acres. As Hillwood attracts businesses, the company will purchase tracts of land from the city for construction of distribution centers and warehouses.
Hillwood will be the master developer of city-owned land at the center. The Jacksonville Aviation Authority’s land is not covered by the contract.
When Dallas-based Hillwood Investment Properties first put its 600,000-square-foot industrial warehouse on the market in July 2009, it didn’t get many takers.
It wasn’t until after pulling the West Point Trade Center back off the market that the Dallas-based office and industrial development company found a suitable buyer in CB Richard Ellis Realty Trust, which bought the property Dec. 30 for $29 million.
“This property benefits from an excellent location in the most desirable and active submarket in the Jacksonville (area),” said Chuck Hessell, director of investments for Princeton, N.J.-based CBRE Realty Trust in a press release announcing the sale.
The property at 2300 Pickettville Road, which is 100 percent occupied by beverage maker Dr Pepper Snapple Group (NYSE: DPS), was actually one of three properties the trust bought at the same time for a total of about $70 million. The other two are fully leased office buildings totaling 222,600 square feet in Miramar.
Hillwood spent about $17.1 million developing the West Point Trade Center in 2008. Dr Pepper Snapple has leased out the space since it opened in 2009. The lease expires in 2019.
West Point Trade Center
Location: 2300 Pickettville Road
Value: $29 million
Size: 601,500 sq. ft
Date: December 2009
Buyer: RT West Point Jax LLC
Buyer’s agent: WND
Seller: Hillwood Investment Properties
Seller’s agent: Terry Quarterman, Jeff Nelson; CB Richard Ellis
Vacuum cleaner maker Royal Appliance Manufacturing is relocating its Ontario distribution operations to a larger facility in San Bernardino.
Its new landlord says the move reflects a trend of growing companies seeking out more favorable business terms in a buyer's market for industrial space.
Royal will begin operations in early May in a newly constructed building purchased in December by Hillwood Investment Properties. According to statements from Hillwood and CB Richard Ellis, Royal has signed a five-year lease for a 415,000-square-foot space at Hillwood's Alliance California industrial development, built on land that once housed Norton Air Force Base.
Officials of Ohio-based Royal, whose brands include Hoover and Dirt Devil, could not immediately be reached for comment. Financial terms were not disclosed for the deal that will bring Royal to the space at 925 Ninth St.
John Magness, a Hillwood senior vice president, said by phone the new location will give Royal about 65,000 more square feet than it had in Ontario, and it will be paying less for rent, taxes and other overhead. The building is also located in a state-sponsored county enterprise zone that gives tax credits for future job creation.
Magness said the current economy has prompted many companies to shop around for space before renewing leases, and Hillwood has received more inquiries about its properties this quarter "than the past three quarters combined."
In December, Hillwood also purchased another building in the same vicinity, with more than 600,000 square feet of space. At the time, Magness said that because Hillwood got a favorable price for the buildings, it is able to offer lower rents to potential tenants.
Hillwood is a division of Dallas-based Perot Companies. It is the primary commercial developer of land on the outskirts of what is now known as San Bernardino International Airport.
SAN BERNARDINO, CA-Royal Appliance Manufacturing Co. is expanding its operations by more than 65,000 square feet and relocating to an industrial building owned by Hillwood Investment Properties in a five-year lease for a 415,825-square-foot building at 925 E. Ninth St. The deal marks one of the largest new leases in the Inland Empire so far this year, according to brokers from CB Richard Ellis who represented Hillwood.
Royal Appliance plans to relocate to the new building upon completion of tenant improvements at the beginning of May. Hillwood acquired the building last year from Blackrock in a transaction brokered by the same CBRE team that represented Hillwood in the Royal Appliance lease: Frank Geraci, Walt Chenoweth, Juan Gutierrez and Patrick Wood of CBRE's Ontario office.
Chenoweth says the new lease produces positive cash flow for Hillwood soon after an acquisition in a slow market. Royal Appliance, which now occupies a 349,000-square-foot facility in the West Inland Empire, manufactures brands including Hoover and Dirt Devil vacuum cleaners.
Royal Appliance was represented by Jeff Smith and Jeff Huberman of Lee & Associates. The five-year lease is valued at more than $5 million.
In December, Hillwood Development also acquired a sister building at the same location. CBRE is also the leasing agent for that building, which is a 609,000-square-foot warehouse at 7776 E. Tippecanoe Ave.
Both buildings are located in the San Bernardino Enterprise Zone at Hillwood's AllianceCalifornia project at the former Norton Air Force Base. According to John Magness, president of Hillwood’s operations in California, the AllianceCalifornia redevelopment project now totals more than 8.6 million square feet.
Hillwood Investment Properties acquired almost 2M SF of vacant industrial buildings: two properties adjacent to Hillwood’s Alliance California development in San Bernardino and the third is the Frankford Trade Center in Carrollton. Specifics weren’t released, but Hillwood prez Tal Hicks says the properties were identified as opportunities. Frankford is a Class A commercial building built in 2000 with renovations expected to finish in 30 days. It's located at the northeast corner of the George Bush Tpke and Interstate 35. It has 660k SF, with 60k of that for office space.