A 169,700 square foot industrial property in Irving, TX, has been acquired by Dalfen Industrial, a commercial real estate investor.
“This is a location play as it relates to the overall market on that side of the Metroplex and so you’re able to serve a heck of a lot of households from that location very quickly, which is really critical for us from an eCommerce focused last-mile platform,” said Sean Dalfen, president and chief investment officer at Dalfen Industrial.
The seven-year-old Century Center building, located just east of Dallas Fort Worth International Airport, was sold to Dalfen Industrial by Project Services Group (PSG) for an undisclosed sum.
“In a place like Dallas, you have all the right fundamentals that are driving people and businesses here, not to mention the weather is pretty good,” Dalfen told The Dallas Express. “If you believe in the US, then you want to invest in the best locations within the US, and what happens over the next few years isn’t, per se, reflective in why we make an investment. Things go up and down but from a longer-term standpoint, we believe Dallas is one of the best markets in the entire nation. We’re banking on that.”
The building is also 100% occupied by PSG and two other tenants.
“The asset will appreciate, and we can increase the rent,” Dalfen said in an interview. “We don’t do anything to not make money. Over time, we adjust the rents to whatever the market is, and, in a market like Dallas, you have double-digit rental rate appreciation annually. So, it’s just based on supply and demand.”
Although the Dallas Fort Worth International Airport played a role in acquisition analysis, it was not the primary driver underlying the purchase, according to Dalfen, who has lived in Preston Hollow in North Dallas for seven years.
“Its proximity to DFW airport is great, too, but this is an infill property where you have very few parcels of land around and so it’s difficult to create this asset in a very dense location that gives you access to both workforce as well as a higher net worth demographic,” he said. “You have everything one needs to be a very good last-mile fulfillment center. That’s really why we went and acquired the asset.”
With this purchase, Dalfen Industrial owns some 3 million square feet in Dallas Fort Worth, with more than 2 million square feet of new properties in development.
“We’ve closed literally half a billion dollars over the past few weeks,” Dalfen added.
Other tenants in the area include FedEx, UPS, PepsiCo, Dr. Pepper, Frito Lay, and Southwest Airlines.
“Dallas remains one of our preferred markets in the nation and it’s not only because I live here,” said Dalfen, who previously lived in Montreal. “It’s because of all the fundamentals of Dallas. There’s a reason for investing here and that’s because others are as well, meaning companies are coming down here and the population is growing. That’s everything we look for when we select a city that we’re going to expand our footprints in.”