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Sep 18, 2023, 10:02 AM

Subtitle : Mckinney, Texas

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SIOR members close big deals in a big way. Select transaction case studies are featured in the SIOR Report so readers can learn both about and from the expertise of our members.

 

TRANSACTION TYPE & DETAILS Date: April 4, 2023 Transaction Type: Sale Property Type: Industrial Size: 279,180 sq. ft. on 16.3 acres Sale Price: $32,000,000 USD Buyer: United Pacific Industries (UPI) Seller: Core5 Industrial Partners

Client Objectives:

• Expansion. UPI needed to expand its services and one of its biggest clients is located in Dallas-Fort Worth (DFW.)
• UPI sought a central location within the U.S. DFW is just a three-hour flight from either coast and an 8- to 12-hour drive to either coast with a port within a 4-hour drive in Houston.
• UPI wanted to add a new location with proximity to an educated workforce.
• Cost-effective solutions were important to UPI and land in North Texas is less expensive than the East Coast or West Coast.
• Specifications UPI needed were addressed through a build-to-suit project that included cross-dock 32-foot clear heights and approximately 11ksquare-foot of office across two pods.

Transaction Profile:

• Spika met Lara in New York in 2016 at an SIOR Conference and the duo chatted about a potential partnership with a client of Lara’s (UPI). In 2017, Lara and UPI flew into DFW International Airport and toured the Dallas industrial market for almost two days looking at industrial sites. About a year later, UPI returned to North Texas where Spika re-introduced them to the McKinney location and shared the details about the educated workforce, growth in population, the McKinney commercial airport, and the great central location.
• Spika reached out to Jessen to inquire about the Core5 Logistics Center at McKinney because he had a client interested in cross-dock space. Jessen responded that Core5 could do a build-to-suit to UPI’s requirements in that location. This benefited both the buyer and seller.

Solution:

• UPI and Core5 both had the good fortune that this deal was started before the land rush got too heated in North Texas. UPI is an early occupier in the McKinney industrial market and thus benefitted from being the trendsetter.
• UPI saw the appeal of the Dallas-Fort Worth Metroplex as a base of operations and the UPI design-build project is one of the first cross-dock buildings of this size built in McKinney during this cycle to serve a growing tenant base. Most industrial users didn’t consider this market before. There were smaller projects under 50,000 square feet. Core5 demonstrated that McKinney is a great place to be with a strong talent base and corporate tax incentives that make it an attractive option to meet UPI’s evolving business goals.
• Logistically, McKinney is ideally suited to support the warehousing and freight needs of UPI, which supplies its’ U.S.-assembled parts and accessories to high-profile customers such as Freightliner, Kenworth, Peterbilt, and Volvo. The Core5 Logistics Center offers a cross-dock configuration and 32-foot clear height to help UPI streamline its warehouse operations, as well as convenient access to nearby airports and key traveling corridors such as State Highway 121, U.S. Highway 75 and U.S. Highway 380.

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PARTICIPANTS & INFORMATION PROVIDED BY

• Scott Jessen, SIOR
• Andy Goldston
• Dan Spika, SIOR
• Andrew Lara, SIOR

Categories :

• Behind the Deal
• SIOR Report

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