Stonelake Capital Partners threw in the towel on an industrial project in Oak Cliff in light of a lawsuit from a neighboring church.
The Dallas-based firm scrapped its plan for a 200,000-square-foot warehouse development spanning 20 acres on Wheatland Road, weeks after a judge granted a temporary injunction filed by Friendship-West Baptist Church, Bisnow reported.
The church, led by Pastor Frederick Haynes III, was a leader in seeking justice for residents affected by the South Dallas environmental hazard known as Shingle Mountain. While Stonelake’s project wasn’t a heavy industrial use like the one in that case, which shone a light on Dallas’ patterns of environmental racism, the church took a stand against it.
By agreeing to cancel the development, all litigation will be dismissed. Even though Stonelake has the property rights to build a warehouse, the company “does not desire to be in conflict with the community,” according to a joint statement by Haynes and Stonelake’s Kenneth Aboussie Jr.
“As leaders for our respective organizations, sharing a common Christian faith, we have kept the lines of communication open in the hopes of resolution and collaboration, and we both concluded that we could accomplish more by working together than by working in conflict with each other,” the statement reads.
Stonelake bought the property, which was already zoned for industrial use, in 2021. The site also borders a government facility and is across the street from a high school and residential community.
Friendship-West’s injunction claimed that the project would affect the livelihood of residents, churchgoers and students, while prolonging a trend of environmental racism plaguing minority communities across Dallas-Fort Worth, the outlet said.
It’s unclear if Stonelake will sell the property or retain it for a different use. Regardless, Stonelake and the church are working toward a solution that’s “both beneficial and agreeable to the community.”
Separately, Stonelake recently closed a $746 million investment fund, much of which will be used to target industrial assets across the Sun Belt. The firm raised the equity from roughly 50 investors, including college endowments, hospital systems, public pensions, insurance companies and wealthy private companies.
—Quinn Donoghue
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