News Article | 3/28/2007

Stylecraft Taps 251,053 SF in Hillwood Park

SOUTHAVEN, MS-Stylecraft Home Collection is expanding its presence by leasing 251,053 sf in DeSoto Trade Center building 3, one of two spec structures that delivered last year. The tenant will move in on or around May 1 from a headquarters location in Hernando.

According to T. Preston Herold, vice president for Fort Worth-based Hillwood Investment Properties, Stylecraft wanted to relocate to a state-of-the-art, clear-height building, which prompted the long-term lease for the 552,106-sf spec at 4325 Executive Dr. He says other tenants are looking at the remaining space, but no letters of intent or contracts have been signed.

Preston tells that the asking rate is $2.95 per sf, triple net, with $3 per sf in tenant-improvement allowance. “They had a few more in TIs than the normal tenant would,” he says about the Stylecraft deal.

The 675-acre DeSoto Trade Center is located along Interstate 55 between Church and Star Landing roads. Herold says the office and industrial development at full build-out could have as much as 11 million sf. To date, more than three million sf of spec and build-to-suit space have come out, with 400 acres still left to develop. In addition to the balance of building 3, there is 260,000 sf open in the 301,053-sf building 4, also built last year along with a 865,120-sf build-to-suit for Switzerland-based logistics firm, Kuehne + Nagel.

Herold says dirt work has started on two sites for more spec space. “One will be large enough for 1.3 million sf and the other will be for a 330,000-sf building,” he adds. “Once we get closer to leasing up buildings 3 and 4, we’ll go vertical on those.”

Herold worked with Dan Wilkinson of Colliers Wilkinson Snowden in Memphis and Richard Burnette of the Burnette Co. in Hernando. The tenant had CFO Dan Shear bargaining its terms.