FORT WORTH, Texas — Editor's note: The video at the top of this article aired on January 18, 2024. The below article was initially published by WFAA's content partners at the Dallas Business Journal. Read the original article here.
A three-building industrial complex on more than 30 acres in northwest Fort Worth has changed hands.
Dallas-based Creation Equity and institutional investors advised by J.P. Morgan Asset Management sold the 531,601 square-foot industrial complex called the Fort West Commerce Center to Boston-based private equity real estate investment firm High Street Logistics Properties LLC, Creation announced July 25. Financial terms weren't disclosed.
Dallas-based Holt Lunsford Commercial handles leasing of the business park at 3101 NW Centre Dr. Defense giant Lockheed Martin (NYSE: LMT) in January leased 136,165 square feet in the building, primarily for storage. Fan maker Big Ass Fans also has space in the building. George Jennings at Holt Lunsford did not respond to Dallas Business Journal's questions about the building's current occupancy. But Taylor Mitcham, Creation’s principal of Texas, said the leasing activity in the building helped with the sale.
"With this sale, which marks our third significant project in the area, we continue to demonstrate our strong belief in the fundamentals of this market and look forward to announcing the acquisition of another nearby site soon," Mitcham said in a statement.
Creation was founded in 2018 by David Sellers and Bob Agahi and now has a $4.5 billion portfolio across Arizona, Texas, California, Tennessee, New York and New Jersey. Las year, the company opened a $17 million headquarters in Dallas' Design District, surpassing $1 billion in its Texas portfolio.
The Dallas-Fort Worth industrial market is experiencing a slowdown. From April to June, the construction pipeline decreased for a fifth consecutive quarter to 21.8 million square feet — the lowest construction activity since the fourth quarter of 2015, according to a recent JLL report. However, leasing was up 25% from the first quarter and at the highest level since the first quarter of 2023. Vacancy continues to climb but at a slower rate.
Many still hold confidence in the market. Hillwood, for example, is planning another large industrial building in AllianceTexas. Preston Meyer, managing director and portfolio manager at J.P. Morgan Asset Management, said there's still strong demand in the industrial sector and the Fort West Commercial Center transaction is an example.
"This transaction underscores investor confidence and demand for high-quality, strategically located industrial assets," Meyer said in a statement.