Urban Logistics Realty has cashed out on an industrial development in Denton that it completed last year.
The Dallas-based firm sold Urban District 35, a four-building complex totaling more than 440,000 square feet, to Massachusetts-based High Street Logistics Properties, the Dallas Morning News reported. The price was not disclosed.
Urban District 35, spanning 31 acres, at the southeast corner of Interstate 35 E and U.S. Route 377, is valued at just over $60 million for tax purposes. The complex is adjacent to the historic Acme Brick Company plant.
Austin investment firm Pennybacker Capital signed on as an equity partner in the development, while First United Bank provided financing. Urban District 35 was completed in January 2023, with GSR Andrade Architects handling design.
High Street Logistics Properties has amassed a $5.1 billion industrial portfolio through acquisition and development since it was founded in 2022.
Urban Logistics, meanwhile, has projects in the DFW suburbs Mesquite and Euless, as well as Houston.
Industrial developments have permeated Dallas-Fort Worth since the pandemic sparked an increase of e-commerce. In October 2022, DFW led the nation with nearly 67 million square feet of industrial projects under construction. The region had nearly 40 million square feet of warehouse space under construction by the end of lasat year, making it one of the fastest-growing industrial markets in the country.
However, demand, while still strong, has started to wane, leading to oversupply. Over 14 million square feet of industrial space flooded North Texas’ sublease market last year, according to Newmark Group. And 69 million square feet of DFW warehouse space was vacant at year end, and vacancy sat at 9.6 percent in the first quarter, as deliveries outpace demand.
—Quinn Donoghue
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