Urban Industrial Park with Development Potential for Sale in Dallas, Texas

Thursday, May 16, 2019

 

HFF, on behalf of the owner, is marketing a 38-acre, 738,198-square-foot infill business park for sale within the urban core of Dallas, Texas. Ideally positioned at the intersection of Inwood Road and Irving Boulevard along the east bank of the Trinity River, Inwood Center comprises 14 buildings which are collectively 92% leased to a diverse mix of high-quality, last-mile distribution users and showroom retailers. Inwood Center’s premier location in the Brookhollow / North Trinity submarket is highly coveted due to its exceptional access and unmatched infill position adjacent to Downtown Dallas, Uptown, the Design District and many of the top residential neighborhoods in DFW.

Inwood Center’s strong operating performance and excellent position within the market provides a reliable income stream with significant upside potential. In the near term, there is opportunity to substantially increase NOI by rolling existing leases to market rental rates. Over the longer term, Inwood Center’s flexible mixed-use zoning provides the opportunity to increase density to a total of 3.3 million square feet through vertical redevelopment. It also offers excellent long-term redevelopment potential that allows for multifamily, hospitality, office and retail uses. With a maximum height of 270 feet, current zoning gives an investor the ability to increase density at the property by 4.5 times.

Investment Highlights

  • Stable In-Place Cash Flow with Significant Upside in Rents:  Inwood Center is 92% leased to 67 tenants with in-place rental rates averaging 42% below market. The property’s outstanding leasing demand, coupled with an average remaining lease term of 2.4 years, provides an investor the opportunity to significantly increase net operating income in the near-term.
  • Unprecedented Rental Rate Growth Environment:  Rental rates in the North Trinity Industrial submarket have experienced explosive growth in recent years, increasing more than 175% since 2012. As a result of this massive growth, in-place rental rates are currently 42% below market.
  • Large Land Assemblage in an Evolving Submarket with Extremely High Barriers to Entry:  Inwood Center presents the rare opportunity to acquire 38 acres in an extremely high-barrier-to-entry submarket with little to no developable land and unprecedented leasing demand. The submarket’s coveted infill location, highly limited supply and rapidly evolving mixed-use landscape are expected to continue to drive rental rate growth and property appreciation.
  • Highly-Coveted Urban Infill Location and Dominant Industrial Submarket with Explosive Rent Growth:  The industrial property for sale’s strategic position near Dallas’ Design District represents the most infill location in the DFW industrial market. Inwood Center is two miles from Uptown Dallas, 2.4 miles from downtown and 2.3 miles from Dallas Love Field Aiport, making it an ideal last-mile location that can easily access the city’s most affluent and densely populated areas. The property is also strategically located in the North Trinity Industrial submarket, a coveted last-mile industrial submarket that has consistently achieved some of the highest rental rates and occupancy levels in Dallas-Fort Worth. Currently, the average warehouse rental rate within the submarket is an astounding $10.21 NNN, and occupancy sits steady at 95%.

For more information on this Dallas commercial real estate listing, please contact Adam Herrin or Stephen Bailey in HFF’s Dallas office or click here to view the web listing where you can download and fill out a CA form.

To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

Holliday GP Corp. ("HFF") is a Texas licensed real estate broker.

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