Real Estate

Hillwood Refinances $88.3M Fully Leased DFW Warehouse

Hillwood refinances fully leased 1.2 million-square-foot AllianceTexas warehouse, signaling strong investment in DFW's industrial growth.

By Doug Elli

5/16, 11:43 EDT

Key Takeaway

  • Hillwood refinanced Alliance Westport 25, a 1.2 million-square-foot fully leased warehouse, appraised at $88.3 million.
  • The loan from Thrivent Financial matures in June 2031, highlighting long-term investment in the booming DFW industrial market.
  • AllianceTexas development has attracted over $14 billion in investments across its office, retail, and industrial spaces over 35 years.

Revitalizing AllianceTexas with Fresh Financing

In a significant financial move, Dallas-based developer Hillwood has successfully refinanced its loan for Alliance Westport 25, a sprawling 1.2 million-square-foot building located at 14800 Blue Mound Road in north Fort Worth. This refinancing, facilitated by a loan from Thrivent Financial set to mature in June 2031, underscores the ongoing vitality and investment appeal of the AllianceTexas development. The building, appraised at $88.3 million according to the Denton County Appraisal District, represents a key component of Hillwood’s 27,000-acre master-planned development, which has seen over $14 billion in private investment over its 35-year history.

AllianceTexas: A Hub of Industrial Growth

AllianceTexas is not just any development; it's a testament to the vision of Hillwood and its leader, Ross Perot Jr., transforming 13,000 acres of farmland into a bustling industrial, office, and retail hub. The development's strategic importance is highlighted by its tenant, Southwire, a leading cable and wire manufacturer, which occupies Alliance Westport 25. This move is part of Hillwood's aggressive strategy to build spec industrial space, including recent announcements of a 760,000-square-foot development and another half a million square feet of spec industrial projects within AllianceTexas. The industrial vacancy rate in the Dallas-Fort Worth (DFW) area, which reached 9.8 percent last quarter, reflects the high demand and rapid growth of the industrial sector in the region.

The Strategic Significance of North Fort Worth

North Fort Worth, as the second-largest industrial submarket in the metroplex, plays a crucial role in the DFW area's industrial landscape. Nearly 90 percent of the 151 million square feet of industrial space in this area is dedicated to warehouse or distribution purposes, highlighting the strategic importance of developments like AllianceTexas. The area's growth is further supported by Hillwood's diverse portfolio of developments and investments across Dallas-Fort Worth, including recent acquisitions in Irving’s Las Colinas and expansions in Frisco Station and Celina. This broad engagement across various sectors underscores Hillwood's commitment to fostering economic growth and development in the region.

A Vision for the Future

The refinancing of Alliance Westport 25 is more than just a financial transaction; it represents a continued belief in the potential of AllianceTexas and the broader DFW industrial market. As Hillwood continues to expand its footprint with speculative developments and strategic acquisitions, the impact of its investments is felt across the entire metroplex. The success of AllianceTexas as a master-planned development highlights the effectiveness of visionary planning and investment in creating dynamic, thriving economic hubs.