PlaceMKR Acquires Industrial Boulevard Portfolio in Rockwall

“This acquisition marks PlaceMKR's first investment in the Dallas-Fort Worth region, which stands as arguably the most important commercial real estate market in the country today,” said Jesse Weber, co-founder and managing principal of PlaceMKR. “Rockwall's exceptional industrial performance and constrained shallow-bay supply create a unique opportunity to add value and serve the needs of growing businesses.”

 The Industrial Boulevard portfolio, at 2005 and 2020 Industrial Blvd. in Rockwall, was constructed between 1976 and 1993. It spans 21 acres and comprises 10 buildings, ranging in size from 10,000 to 163,000 square feet. Building tenants include local and national occupiers with an average time at the property of more than 10 years.

PlaceMKR plans to immediately implement an extensive capital improvement plan to enhance the tenant experience and performance of the assets. They have completed similar projects in Austin and New Braunfels that have enhanced industrial and IOS properties through aesthetic, utility, paving and wayfinding improvements.

Strategically located about 25 miles east of Downtown Dallas along I-30, the portfolio features outdoor storage, drive-in and dock-high loading, heavy power, HVAC and clear heights of 16'-24'. The property is near some of Rockwall's major employers, including Channell Commercial Corporation, Graham Packaging Company, SPR Packaging and IKEA.

Additionally, the portfolio is in a highly desirable location, just 2.5 miles from the 550-acre Rockwall Technology Park industrial hub. Overseen by the Rockwall Economic Development Corporation, it is home to many of the city's largest manufacturers and industrial job creators.

“The combination of accessibility to the wealthiest county in Texas, along with the usability of this shallow bay product, provides tenants with the operational efficiency they require to serve the fast-growing eastern DFW corridor,” said Christopher Cortese, PlaceMKR co-founder and managing principal.

Rockwall’s industrial inventory of 7.1 million square feet represents about .6% of the Metroplex’s total market of 1.2 billion square feet. Despite its small size, Rockwall has consistently out performed the broader region in occupancy, Cortese said. The submarket's net absorption has remained strong with 197k SF absorbed within the previous 12 months, despite inventory expanding 20.5% in that same period.

Historically, new development in Rockwall has focused on big-box, tilt-wall construction where spaces are not easily demised for service industrial tenancy. This has resulted in a lack of available vacancies of less than 20,000 square feet,which in turn has led to asking rates achieving all-time highs. Furthermore, rising construction costs mixed with high land values make ground-up construction of small bay product unfeasible. The Industrial Boulevard portfolio benefits from this imbalance by offering functionality and existing availability, which is becoming increasingly scarce in Rockwall.

“This transaction is representative of PlaceMKR’s commitment to acquiring highly functional industrial and IOS assets in well-performing, growth submarkets throughout Texas,” Cortese said.