Global investor KKR has been a big buyer of North Texas industrial buildings. Now the New York-based firm is ready to build its own business park in North Fort Worth.
KKR plans to develop the three-building, 600,000-square-foot industrial project on Bonds Ranch Road near Interstate 35W, planning documents filed with the state show.
The more than $42 million project will be constructed southwest of Alliance Airport and was designed by Atlanta-based architect ADB Design Services.
Work on the business park will begin in October, with the first buildings available in late 2023.
Construction of the industrial project follows KKR’s recent purchase of three industrial buildings in the nearby AllianceTexas development. The Alliance Northport warehouse and distribution buildings contain more than 900,000 square feet of space and were built in 2020 by AllianceTexas developer Hillwood.
KKR acquired the first phase of the Urban District 30 industrial park in Mesquite in late 2021.
And at the end of 2020, KKR bought a 1 million-square-foot Amazon distribution center in southern Dallas County.
Along with buying industrial properties, KKR recently announced it would begin “ground-up development of Class A industrial logistics properties.”
The investor said it plans to build eight warehouse projects with 1.8 million square feet of space in Atlanta, Dallas-Fort Worth, Denver and Orlando, Fla.
“The addition of ground-up development capabilities enhance our ability to assemble diversified portfolios of high-quality industrial real estate and increase our presence in growth markets where we believe the supply-demand fundamentals remain dynamic,” Ben Brudney, a director in the real estate group at KKR, said in a statement. “Our extensive experience acquiring approximately $7 billion of industrial real estate in the U.S. over the last four years positions us to identify attractive opportunities and development is a natural extension of our strategy.”
Funding for the warehouse projects is being provided by a KKR opportunistic equity real estate fund.
Square Mile Capital and BMO Harris Bank are providing $200 million in construction loans.
KKR already owns more than 45 million square feet of industrial real estate.
The D-FW area is the country’s top industrial building market, with more than 70 million square feet of warehouse projects on the way.