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3401 Innovative Way. Image courtesy of Arden Logistics Parks
Arden Logistics Parks continues to increase its holdings with the addition of one sizeable portfolio at a time. The company has acquired a total of 764,100 square feet in the Dallas-Fort Worth metro. ALP purchased a 14-property group of industrial assets, totaling 19 buildings, from MoxieBridge.
The DFW Infill Portfolio is not a cutting-edge logistics collection. With an average vintage of 1982, it consists of facilities built between 1965 and 2018. Still, given the state of the Dallas-Fort Worth industrial market, it is anything but remarkable that this group of properties is 96 percent leased.
“Even with record new construction, tenants continue to compete for available space meeting their size and timing requirements as demand for every size range remains strong,” according to a first quarter 2022 report by JLL. ALP sourced the transaction through JLL.
Single- and multi-tenant facilities
Among the properties in the DFW Infill Portfolio are the 22,400-square-foot building at 545 Commerce St. in Southlake, the 29,000-square-foot asset at 2120 Vanco Drive in Irving, and the 44,600-square-foot property at 15301-15323 Midway Road in Addison. The 57,400-square-foot facility at 902-910 Fountain Parkway in Grand Prairie is also part of the group, as are the 60,000-square-foot building at 1705 John Connally Drive in Carrollton, the 69,000-square-foot building at 3609 Marquis Drive in Garland and 12400 Ford Road, a property that encompasses 75,700 square feet in Farmers Branch.
Two larger assets, the 112,000-square-foot facility at 3325-3441 Halifax St. in Dallas and the 134,800-square-foot property at 3301-3401 Innovative Way in Mesquite, are also part of the collection.
A total of 29 tenants call the DFW Infill Portfolio home and benefit from the properties’ locations within close proximity to major transportation arteries and key infrastructure, which allow for ease of access to the most densely populated residential areas and primary commercial hubs in the metro.
The parties involved are not talking transaction financials, but ALP did acquire the DFW Infill Portfolio at a discount to replacement cost.
“Replacement costs for new light industrial product has increased dramatically over the last 24 months as construction costs have increased and developable land sites in DFW’s top infill submarkets are virtually nonexistent. In addition, there is limited supply of competing shallow bay product in the market. Both factors make the portfolio a meaningful discount to replacement cost with an irreplaceable position within the market,” JLL wrote in the marketing memo for the portfolio.
Adding up the square footage
ALP acquired the DFW Infill Portfolio on behalf of Philadelphia-based Arden Group and Bahrain-based Arcapita, two investment firms that formed a joint venture in November 2021 with the goal of acquiring a portfolio of industrial properties with a gross asset value of as much as $2 billion in urban centers across the U.S. On the heels of the formation of the joint venture, Arden Group and Arcapita announced the launch of ALP in late 2021 as a real estate operating platform that would serve as the consumer-facing brand for the joint venture. ALP has been on a buying binge ever since.
ALP’s recent acquisitions include an approximately 1.3 million-square-foot portfolio in the Boston Metro South industrial market. The group of eight buildings, which is 98 percent leased, marked the company’s first major purchase in metropolitan Boston.
With the completion of the DFW Infill Portfolio, ALP’s footprint in the Dallas-Fort Worth area is now nearing 2 million square feet.
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