CanTex Buys Dallas-Area Industrial Campus

February 13, 2023

2701 E. Grauwyler Road. Image courtesy of CanTex Capital

CanTex Capital adds to its portfolio of infill industrial assets in the Lone Star State with the acquisition of 2701 E. Grauwyler Road, an approximately 313,600-square-foot campus on more than 50 acres in Irving, Texas. CanTex, which partnered with Nicola Wealth Real Estate on the purchase, bought the fully leased property from an affiliate of Broadstone Net Lease Inc., according to Dallas County records.

CanTex relied on Chase Miller of NAI Robert Lynn for representation in the acquisition of the Irving asset, which marks the largest transaction in the Brookhollow submarket in the last few years. “This is a critical piece of the urban fabric in the Brookhollow submarket in terms of size, location and future flexibility,” Romit Cheema, CEO & principal of CanTex Capital, told Commercial Property Executive.

READ ALSO: Industrial Sector to Maintain Winning Streak in 2023

The complex features three buildings developed between 1970 and 1980, and it is one of the largest infill industrial land sites in the Dallas-Fort Worth market. BancTec, a subsidiary of Exela Technologies, occupies the property under a long-term lease agreement. The property sits along the well-traveled Highway 183 and is less than 6 miles from Dallas Love Field Airport.

Submarket stability

In terms of inventory, West Brookhollow is among the Metroplex’s largest submarkets, and vacancy rates have historically remained low as a result of the scarcity of new product and the existence of stable tenants, as noted in a fourth quarter 2022 report by commercial real estate services firm Bradford Cos. The majority of the inventory in West Brookhollow was developed in the 1980s, and in this case, age is an advantage.

“Most buildings lack the specifications necessary for modern distribution or e-commerce operations. Therefore, manufacturers, suppliers, or local distributors will continue to drive demand,” according to the Bradford report.

The industrial market in the Greater Irving area in general is faring well, with no signs of distress. The supply-constrained city has little room for new development, and its proximity to Dallas and Las Colinas is a notable advantage, as both areas are experiencing substantial growth, Cheema noted. “Demand for infill industrial space will increase as more companies move to Dallas and as companies prioritize last-mile delivery locations,” he added.

CanTex is in growth mode; the company enhanced its portfolio by 2.3 million square feet in 2022 with the acquisition of 50 buildings. However, the firm has also been reaping the rewards of its repositioning and redevelopment skills. In January, CanTex sold five industrial properties totaling approximately 690,000 square feet in Dallas to Shopoff Realty Investments, which had secured more than $67 million in acquisition financing for the deal.

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