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Low-coverage Industrial Portfolio in DFW Sold to CIP Real Estate

Dallas.citybizlist.com, January 25, 2021

JLL Capital markets announced today that it has closed the sale of and secured acquisition financing for an institutional quality industrial portfolio made up of three low-coverage industrial service facilities totaling 168,600 square feet in three of Dallas-Fort Worth’s most infill submarkets.
JLL represented MoxieBridge, the seller, in the sale of the portfolio to the new owner, CIP Real Estate. Additionally, JLL worked on behalf of the new owner to secure the five-year, fixed-rate, non-recourse acquisition financing.

Fully leased at the time of close, the portfolio consists of three low-coverage, multi-tenant truck service facilities with a significant trailer parking component that generates approximately 30 percent of the portfolio’s total revenue. Situated on 35.3 total acres, the properties are located on large land sites in coveted last-mile locations within the Upper GSW, West Hines North and Meacham / Fossil Creek Industrial submarkets and are at 1830 and 1840 High Prairie Rd. in Grand Prairie, 2202 Manana Dr. in Dallas and 5309 Superior Pkwy. in Fort Worth. Constructed between 2006 and 2009,
the portfolio features clear heights ranging from 20 to 22 feet, cross-dock configuration, concrete tilt-wall construction and 15 percent average office finish-out.

In recent years, the portfolio has achieved outstanding absorption and rental rate growth as the trucking industry has flourished, and a lack of comparable supply within the market has continued to drive performance at the property level. With in-place rental rates still averaging more than 15 percent below market, the portfolio provided the buyer with the rare opportunity to acquire a high-quality portfolio of scale with strong in-place cash flow and highly compelling upside.

“We are very pleased to have an opportunity to purchase these rare truck service and storage properties in the DFW market,” said Eric Smyth, CEO of CIP Real Estate. “This type of industrial real estate cannot be duplicated in infill locations in the Dallas metro due to high land prices and zoning requirements, which makes the deal particularly compelling for our program. This portfolio is our first acquisition in DFW, so it’s great to plant a flag with these assets.”

The JLL Capital Markets Investment Advisory team representing the seller was led by Senior Director Stephen Bailey, Managing Director Dustin Volz, and Associate Adam Roossien.

The JLL Capital Markets Debt Placement team securing the financing on behalf of the new owner included Director Jarrod McCabe and Executive Managing Director Kevin MacKenzie. JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

About MoxieBridge

MoxieBridge invests primarily through the acquisition of industrial and other commercial real estate assets. The company’s disciplined and efficient process of sourcing, evaluating and executing each investment both drives investor returns and creates better places for the communities it serves.

About CIP Real Estate

CIP Real Estate is a full-service real estate investment and management company focused on the acquisition, development, repositioning and management of industrial and business parks. Founded in 1995, CIP Real Estate has completed more than $1 billion in real estate transactions and owns and manages over 6.7 million square feet of quality real estate throughout California, Nevada, Georgia, North and South Carolina.
About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.