Ridgeline Property Group and Stockbridge Capital Group just sold Eagle Park 20/35, their 454K SF Class-A DeSoto distribution center on 29.5 acres, to an undisclosed institutional investor looking to break into the South Dallas market. JLL’s Dustin Volz and John Huguenard represented both sides of the transaction.

This sale is indicative of healthy interest in the submarket, according to Volz.

“I think what [this transaction] shows is continued investor interest in the South Dallas market even after what we could consider a bit of a slow second quarter from an absorption standpoint,” Volz said.

According to Volz, capital investors feel good about the South Dallas submarket. He cited five key factors in the submarket that influenced the buyer’s decision to purchase the property:

• Limited building competition for full buildings that can accommodate a 400K SF to 500K SF tenant.

• Substantial tenant demand in the 200K SF to 500K SF range.

• Roughly 2M SF of active deals for tenants in the 200K SF to 500K SF range targeting the South Dallas submarket.

• Great ingress/egress to both Interstate 20 and I-35.

• Limited number of available land sites that can directly compete in the future for new development.

The buyer was intent on breaking into this submarket, and the deal was done quickly after an off-market conversation with the developer (Ridgeline). According to Volz, the buyer shook on the deal with an eye on the future and is looking to hold the property long term.

“Everybody feels very good about the market on a long-term basis. This was a long-term acquisition for the institutional owner, so they were very comfortable buying [the property] at the basis they bought it at, and they feel good about their basis over a 10- or 15-year hold,” Volz said.