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Hillwood doubles down on industrial, plans million-square-foot facility at AllianceTexas

It’s part of Dallas developer’s plan to build millions of square feet of industrial space

Dallas developer Hillwood is pushing forward with plans to build millions of square feet of industrial facilities at its AllianceTexas development. The newest addition will be a more than 1.1 million square foot building in southern Denton County.

The company announced Tuesday plans for Alliance Westport 24, a class A speculative industrial building that will have direct access to FM 156 and the BNSF Railway Alliance Intermodal Facility. Hillwood plans to break ground on the more than 1.1-million-square-foot facility this month. It is slated for completion near the end of 2025.

Hillwood plans to lease the facility to a single tenant. Estimated construction costs are nearly $51 million, according to a filing with the Texas Department of Licensing and Regulation.

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“Over the past year, AllianceTexas has experienced unprecedented industrial demand as one of the best-performing submarkets in the entire country by measure of net absorption — even outperforming the entire Chicago market by nearly 20%,” Reid Goetz, senior vice president of Hillwood, said in a statement. “With Westport 24, Hillwood is doubling down on our industrial growth strategy within AllianceTexas and remains committed to attracting best-in-class logistics and manufacturing companies requiring facilities over 1 million square feet.”

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Alliance Westport 24, a cross-dock facility, will be designed with additional land to provide the highest amount of on-site trailer parking spots in the Dallas-Fort Worth market, the company said. There will be up to 704 on-site trailer parking spots with the expansion of up to four total onsite truck courts.

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The site will also have infrastructure for future electric car and truck charging stations. Speculative tenant improvements will be constructed with the shell building, including 2,700 square feet of main office space, LED warehouse lighting, 3,000 amps of power and 20 full dock packages. This allows tenants to occupy and operate in the building as soon as construction is complete, Hillwood said.

The building will be designed by RGA Architects. Westwood is the civil engineering design firm. Hillwood Construction Services will serve as the general contractor for the project.

The news comes months after Hillwood announced it was building Alliance Westport 14, a 766,994-square-foot Class A industrial space with the ability to have multiple tenants. Construction on Alliance Westport 14 is already underway and is expected to be finished in June 2025.

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The projects are part of Hillwood’s plan to develop 3.5 million square feet of industrial facilities across AllianceTexas — its master-planned, mixed-use facility in North Fort Worth and southern Denton County.

At the end of 2023, AllianceTexas was valued at $15.3 billion.

D-FW leads the U.S. in net absorption for industrial real estate through the third quarter of 2024 and has exceeded 1 billion square feet of inventory overall, according to a report by commercial real estate firm Cushman & Wakefield.

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