GTIS Partners LP, a real estate investment firm with $4.7 billion in gross assets, has acquired a 26-acre site in the Dallas-Fort Worth area. The company plans to develop a 442,000-square-foot Class A industrial facility on the property, which is located in a high-demand submarket with limited available land for new construction.
Key Takeaways
- GTIS Partners acquired a 26-acre industrial site in the Great Southwest (GSW) submarket of Dallas-Fort Worth.
- The firm will develop a 442,000-square-foot Class A cross-dock logistics facility named Remington 30.
- The project targets a market segment where new buildings delivered since 2018 have a 0% vacancy rate.
- The development is located in a Qualified Opportunity Zone and is capitalized by a dedicated GTIS fund.
New Industrial Project in a Prime DFW Location
GTIS Partners has announced a significant new project in the Dallas-Fort Worth industrial market. The firm has secured a 26-acre parcel of land in the Great Southwest (GSW) submarket, a strategically important logistics corridor situated south of the Dallas-Fort Worth International Airport.
The development, named Remington 30, will feature a modern, 442,000-square-foot cross-dock facility. This design is highly sought after by logistics and distribution companies for its efficiency in moving goods. The building will also be demisable, offering leasing flexibility to accommodate one or multiple tenants.
Strategic Connectivity
The Remington 30 site offers excellent access to major transportation arteries. It is located near Interstate 30, the primary east-west highway connecting Dallas and Fort Worth, and the President George Bush Turnpike (PGBT), a crucial north-south toll road. This connectivity provides direct routes to residential markets and other key highways like Interstate 20.
Addressing High Demand in a Tight Market
The GSW industrial submarket is one of the most established in the Dallas-Fort Worth metroplex. Due to its age and the presence of wetlands, there is a scarcity of land available for new large-scale industrial projects, creating high barriers to entry for developers.
Demand for modern industrial space in this area remains exceptionally strong. According to market data, the bulk industrial segment, which includes buildings between 250,000 and 500,000 square feet, is performing very well. This segment has seen positive net absorption over the past 12 months.
Zero Percent Vacancy for New Construction
A key indicator of the market's strength is the vacancy rate for new facilities. The eight bulk buildings delivered in the GSW submarket between 2018 and 2023, totaling 2.8 million square feet, currently have a 0% vacancy rate. This demonstrates the pent-up demand that Remington 30 aims to satisfy.
Gaurav Sahay, a managing director at GTIS Partners, commented on the market dynamics.
“GTIS is excited to introduce new, Class A product in a premier industrial market with high barriers to entry given the lack of developable land, further illustrated by a limited construction pipeline equal to 1.3% increase to existing inventory,” Sahay stated.
Investment Through Opportunity Zone Fund
The Remington 30 project is notable for its funding structure. The site is located within a federally designated Qualified Opportunity Zone (QOZ), which is designed to encourage long-term investments in economically undercapitalized communities by providing tax incentives to investors.
The development is capitalized by the GTIS Opportunity Zone Fund I. This is a $630 million investment vehicle raised by GTIS specifically for developing projects in these designated areas across the United States. This approach aligns the firm's investment strategy with federal initiatives aimed at stimulating local economic growth.
A Hub for Major Corporations
The strategic value of the GSW submarket is underscored by the presence of numerous major corporations. The area is home to large-scale operations for companies including:
- FedEx
- PepsiCo
- Office Depot
- Penske
- GE Appliances
These companies are attracted to the location because of its logistical advantages and its access to the deep and skilled labor pool of the Dallas-Fort Worth metroplex. The addition of Remington 30 is expected to further solidify the area's reputation as a top-tier industrial and distribution hub in the United States.
