News Article | 8/27/2007

Hillwood Builds 790,000 SF of Flex Space in Dallas Suburb

Fueled by growth in one of the suburbs surrounding DFW International Airport, Hillwood Investment Properties has begun construction on two buildings totaling 790,000 square feet within the Lakeside Trade Center in the Dallas suburb of Flower Mound, Texas. Plans call new buildings to house flex-office and/or flex-warehouse facilities. Financials on the project were not disclosed.The 137-acre Lakeside Trade Center development currently includes three buildings totaling 1.4 million square feet that are 100 percent occupied. The development has attracted nine companies that employ approximately 400 workers. Tenants include Best Buy, Maytag, Stacy Furniture and Exel Logistics. Hillwood began developing Lakeside Trade Center in 2002.

The two new speculative buildings, which are located just north of the intersection of Lakeside Parkway and Enterprise Drive in Flower Mound, will be completed in December. Lakeside Trade Center is the first Class A industrial space for the town of Flower Mound. The town’s new industrial market is a natural progression of the robust markets of neighboring communities, Coppell and Grapevine. With the incentives provided by the town of Flower Mound and Denton County, the two new buildings at Lakeside Trade Center offer the lowest combined tax rate in North Texas, according to Hillwood information. The development also features the advantages of Triple Freeport, easy access to major highways and proximity to DFW Airport. “These buildings are a continuation of developments we’ve been working on in Flower Mound for several years now,” Dan Tatsch, senior vice president of Hillwood Investment Properties, told CPN. “When we planted our flag in Flower Mound, we did so because it is a great location just three miles north of DFW International Airport and centrally located in the Metroplex.”Tatsch said the town has viewed this project as a sensible diversification of its property tax base and offered Hillwood good incentive packages.“For Phase II of our development, you’ll see the same kinds of users that Phase I saw,” Tatsch said. “We have several proposals out, but nothing signed yet.”Lakeside Trade Center profited from 379,700 square feet of black ink as locally-based Stacy Furniture filled the recently-delivered Building 2 located at 709 Enterprise Drive, according to the second quarter Dallas/Fort Worth Industrial Market Trends newsletter published by Grubb & Ellis Co. Mark Miller and Adam Curran of Robert Lynn Company will market the buildings for Hillwood. Hillwood, a Perot company, is ranked as one of the top commercial real estate developers in the country and the top residential developer in Dallas-Fort Worth. The company’s developments currently house facilities for 85 companies listed on either the Fortune 500, Global 500 or Forbes list of top private firms. In addition to Lakeside Trade Center, Hillwood is best known for its development of the 17,000-acre AllianceTexas development, located 15 miles northwest of DFW Airport; the $420-million American Airlines Center and Victory district near downtown Dallas; and AllianceCalifornia, the 2,000-acre logistics center near Los Angeles.