Westcore Acquires DFW Distribution Facility

Rockwall Distribution Center. Image courtesy of Stream Realty Partners

Westcore has completed the forward purchase of Rockwall Distribution Center, a 301,120-square-foot Class A industrial building in Rockwall, Texas. Stream Realty Partners sold the recently completed asset with the assistance of Newmark.

The new owner has already preleased 209,496 square feet to an undisclosed tenant and is underway on customizing the remaining 91,624 square feet of available space with speculative office and warehouse improvements to allow for immediate occupancy by one to two additional tenants. In conjunction with the primary lease, Westcore intends to expand an area on the west side of the property for additional outside storage and trailer parking.

The rear-load building at 1351 Corporate Crossing features convenient access to Interstate 30, a 32-foot clear height, ESFR sprinklers, 68 dock-high loading doors, 62 trailer parking spots and an all-concrete 185-foot truck court.

Dustin Volz, Stephen Bailey and Dom Espinosa of Newmark (formerly JLL), together with Matt Dornak and Ryan Wolcott of Stream Realty Partners, represented the seller in the transaction.

Bullish on Texas

Since its founding in 2000, Westcore has acquired, managed and sold more than more than 1,000 buildings totaling over 100 million square feet. In Texas, the firm has acquired nearly 6 million square feet of industrial space in less than 3 years.

In one of the more recent transactions, Westcore acquired three of the four buildings at North Quarter 35 in Fort Worth from the park’s developer, M2G Ventures. The three buildings, totaling 485,330 square feet, were fully leased at the time of sale.

Earlier this year, Westcore purchased Denton Point I & II, a two-building, 242,320-square-foot Class A industrial property in Denton, Texas. A joint venture of TA Associates and Holt Lundsford sold for about $32 million.

An affordable industrial market

Dallas-Fort Worth’s industrial market is both solid and active right now. The metro’s vacancy rate clocked in at 5.8 percent as of May, according to a recent CommercialEdge report, while rents recorded a 7 percent growth over the year. Despite that surge in rents, the Metroplex remained affordable compared with most logistics markets nationwide, the report shows.

The region’s industrial development pipeline amounted to 53.8 million square feet, or 6.0 percent of the total inventory, second in the U.S. after Phoenix. On a national level, the pipeline accounted for only 3.4 percent of total stock.