KTR buys DeSoto tract for massive 1.6M SF speculative distribution hub

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The new facility will be located in the South Dallas market. The developer is looking to land some major distribution tenants.

Candace Carlisle

Staff Writer- Dallas Business Journal

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A large 96-acre tract has been bought by an affiliate of New York City-based KTR Capital Partners, which plans to develop a massive 1.6 million-square-foot speculative distribution hub.

Terms of the sale were undisclosed.

The new distribution hub could land with one single tenant, or be broken up into two smaller distribution hubs, Antoine Long, the economic development specialist with the DeSoto Economic Development Corporation, told the Dallas Business Journal.

Long said the economic corporation is prepared to offer economic incentives to potential new tenants ranging from property tax abatements and a potential skills development fund grant.

Once complete, the new distribution hub will be configured to handle bulk movement with 200-foot truck bays and an abundance of excess trailer storage.

The land deal was an excellent opportunity to capture the build-to-suit business eyeing South Dallas for its distribution proximity, said Mace McClatchy, KTR's vice president of investments.

"We feel that this is a large flexible piece of land in the Metroplex that can accommodate various building sizes and excess trailer parking needs, allowing us to address the needs of a wide variety of tenant requirements," McClatchy said in a statement.

KTR has already begun site work on the property, with hopes of finishing the project by the end of the third quarter of 2015.

This project would be one of the largest distribution projects to be developed in North Texas. Earlier this fall, P&G finished a 1.4 million-square-foot distribution hub in Hutchins. This spring, Georgia-Pacific LLC was eyeing Hillwood's 1.6 million-square-foot warehouse in Hutchins.

Candace covers commercial and residential real estate and sports business.