Dallas-based private equity real estate fund manager Velocis and KBC Advisors have finished two speculative industrial buildings in Mercantile Business Park in Fort Worth.
Totaling a combined 851,033 square feet of Class A space, Mercantile Logistics Station sits near both Interstate 35W and Interstate 820 with direct pedestrian access to the TEXRail commuter train line. One of the buildings can also accommodate outside storage.
The development effort is part of a $250 million fund Velocis raised for ground-up industrial real estate across Texas. KBC has acted as a development partner on most of Velocis’ nine deals to date tied to the fund.
It was the Mercantile area’s access to labor that was a key point of attraction for the project. The other piece was the existing institutional ownership at Mercantile Business Park, according to Paul Smith, a Velocis partner and head of the firm’s industrial practice.
“You have a real blue chip list of owners in the park, and that’s a pretty good indicator,” he said.
There is already good interest in the buildings, Smith said, noting the draw is for corporate users.
He said that, from a big-picture standpoint, Velocis continues to like Texas with deals already planted in D-FW, Houston, Austin and Temple.
“We’ve looked at and underwritten deals in border markets, like El Paso and Laredo, but we haven’t placed any money there. That may be for Fund II.”
The newly completed Fort Worth properties, located near the corner of Meacham Boulevard and N. Beach Street, are being leased by KBC’s Whit Maddox, Krista Raymond, and Nathan Lawrence.
The buildings, 459,805 square feet and 391,228 square feet, are divisible to 150,000 square feet and 200,000 square feet.
Bob Moore Construction served as the general contractor on the project, with architecture services coming from Ware Malcomb and engineering from Westwood. Hillcrest Bank provided debt financing for the development.
The project team is working with Velocis and KBC on another speculative project, Mercantile 820 Logistics Park. The four-building, 650,000-square-foot park is set to be completed in early 2025.
