Stillwater Capital Breaks Ground on Dallas-Area Industrial Park

121 Technology Park. Image courtesy of Stillwater Capital

Stillwater Capital has started construction on the first phase of 121 Technology Park, an 84-acre mixed-use development in Allen, Texas. Peinado Construction is serving as the project’s general contractor and Lee & Associates will provide brokerage and leasing services, CommercialEdge data shows.

Phase One will comprise four industrial and manufacturing buildings totaling 370,000 square feet. The developer expects to complete their construction by July 2024, to complete lease ups and asset stabilizations by November of the same year and to sell them by March 2025. The sale of the first phase’s buildings is projected to contribute to $29.6 million in equity rollover to the second phase.

With a total construction cost of $140.6 million, Stillwater is financing the project with loans from Vista Bank, alongside equity funds from NHK Capital Partners, which is also serving as fund manager.

A two-phase project

Initially dubbed Chelsea 121, the technology park is taking shape at the intersection of State Highway 121 and Chelsea Boulevard. The project received the approval of the Allen Planning and Zoning Commission in May 2022 for the development of light industrial and manufacturing space on 59.7 acres; 14.2 acres were zoned for the construction of townhomes and 10.4 acres, for office and retail.

Phase One’s buildings will range from 33,000 to 129,000 square feet, with clear heights of 28 and 32 feet. Specifically geared towards research and technology companies, the facilities were designed for uses in manufacturing, warehousing and distribution of consumer goods.

The project’s Phase Two will see the construction of two 100,000-square-foot office buildings and 20,000-square feet of retail space, together with 130 owner-occupied townhomes. Groundbreaking is scheduled for April 2025, with completion expected after 12 months.

READ ALSO: Manufacturing’s Comeback Boosts Industrial Space Demand

121 Technology Park will be part of the largest metropolitan square area in Texas, with access to a base of 2.4 million workers within 20 miles, alongside a consumer base of 2.7 million. The site is 1 mile away from an intersection with U.S. Route 75. McKinney National Airport and Dallas Fort Worth International Airport are 4.5 and 28 miles away, respectively.

Ken Wesson, SIOR, CCIM, co-managing principal at Lee & Associates, will serve as the leasing broker for the the property.

Industrial construction in the Lone Star State

Bolstered by corporate relocations from the likes of tech giants such as Tesla, Oracle, Samsung and Hewlett Packard, the state’s industrial base has made strides in keeping up. The Dallas-Fort Worth metro boasts the nation’s largest pipeline of industrial space by volume, amounting to nearly 60 million square feet as of March, according to a recent report from CommercialEdge.

One of the metro’s current developments, approaching completion, is a four-building business park totaling 917,374 square feet in Benbrook, Texas. The project is slated for delivery in the third quarter of this year.

Another large project is expected to break ground in early 2024 in Mesquite, Texas. The City gave the green light to the development of 3.2 million square feet of industrial space at a 235-acre site along Interstate 20.