PGIM, Creation Land $66M for 600 KSF Dallas Project
Two banks co-originated the debt.
Creation Equity and PGIM Real Estate have secured construction financing for a 595,688-square-foot industrial development in Dallas. A syndication between Veritex Bank and Comerica Bank issued the note in a deal arranged by JLL. The duo co-originated $65.5 million, public records show.
The project, dubbed 635 Exchange, is slated for completion in October 2026. Creation revealed its plans for this endeavor last December, along with another 137,000-square-foot development in Fort Worth, Texas.
Situated on a former city of Dallas landfill at 11645 Newberry St., the roughly 36-acre development site is less than 1 mile from the interchange between interstates 35E and 635. Dallas Fort Worth International Airport operates some 10 miles west, while the downtown area is about 13 miles southeast.
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The property will comprise three rear-load facilities ranging between 144,216 and 243,472 square feet. Clear heights are on track to measure from 32 to 36 feet, while the truck courts will range from 130 to 185 feet. Combined, the trio will feature 100 dock and six drive-in doors, as well as parking arrangements for 498 cars and 132 trailers.
JLL Managing Director Greg Napper and Associate Luke Rogers, together with Analyst Charlie Mossy, represented the borrowers in the debt acquisition proceedings.
Creation Equity valued its industrial development pipeline at $1.8 billion, according to the company’s website. Earlier this year, it acquired a 38-acre site in the Metroplex to develop another 451,032-square-foot project, also consisting of three industrial facilities.
Dallas industrial completions taper off as rents go up
Dallas-Fort Worth’s industrial pipeline encompassed 30.6 million square feet in July, leading the nation, according to the latest Yardi Matrix report. Yet, that figure accounted for 3.0 percent of the market’s stock, below Phoenix (3.9 percent) and Memphis (4.1 percent). The national index stood at 1.7 percent.
Industrial completions eased throughout the metro, with developers bringing online 13.7 million square feet of space during the first eight months, marking a 35.3 percent decrease compared to the same period of last year, Yardi Research Data shows.
Meanwhile, as less product hit the market, industrial rents across the Metroplex grew 8.1 percent year-over-year through July, landing at $6.56, yet still substantially below the U.S. average of $8.63, the report shows. The market’s vacancy rate clocked in at 10.2 percent, 110 basis points above the national figure.
The Metroplex’s pipeline is set to expand further as Hillwood plans to break ground on two speculative facilities encompassing more than 1.1 million square feet at the 27,000-acre Alliance Texas master-planned development.
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