Traffic World

Allen Group Picks Builders

24 July 2007

Dallas Logistics Hub developer The Allen Group selected two Dallas-area contractors to build the first two speculative warehouse-distribution facilities at the 6,000 acre park.

3i Construction will build the 192,850 square foot DLH Building 2 and will provide construction services on DLH Building 1, a 635,000 square foot cross-docking facility to be built by Mycon General Contractors of McKinney, Texas.

3i Construction is a minority-owned business. Its selection partially fulfills a pledge by The Allen Group to achieve at least 25 percent minority participation on both public and private projects.

Construction of Buildings 1 and 2 will start in late July and should be complete by February 2008.

The Dallas Logistics Hub will eventually incorporate 60 million square feet of distribution, manufacturing, office and retail development. It is located adjacent to Union Pacific’s Southern Dallas Intermodal Terminal, a proposed intermodal project by BNSF, four major highway connections and Lancaster Airport in south Dallas County. It is planned to be a component of the NAFTA infrastructure and as an inland port serving U.S. West Coast and developing Mexican seaports.

Dallas Business Journal

Dallas Logistics Hub –the New Buzz in Southern Dallas

19 July 2007

As most industry experts will acknowledge, the three most important success factors in real estate are “location, location, location.” This statement is especially true in the context of global trade and transportation trends, all taking place around Dallas, Lancaster, Wilmer and Hutchins –home to the new Dallas Logistics Hub (“The Hub”).

The Allen Group, one of the nations’ fastest growing privately held real estate firms, is responsible for the creation of one of the most sophisticated logistics parks in North America, with over 6,000 acres master-planned for the development of more than 60million square feet of distribution, manufacturing, office and retail uses.

The Dallas Logistics Hubs’ unique infrastructure access includes: Union Pacific’s Southern Dallas Intermodal Terminal, a planned BNSF Intermodal facility, four major highways and the possibility of a future air-cargo facility at Lancaster Airport. The Hub will position Southern Dallas County ad the premier trade hub in the United States and will serve as the gateway for the distribution of goods to the major population centers throughout the Central and Eastern United States.

Slated to be one of the biggest economic engines in North Texas, the Dallas Logistics Hub, at full-out, will create approximately 31,000 direct and 32,000 indirect jobs and have a $68.5 billion economic impact to the Dallas/Fort Worth Metroplex.

“Transfers to inland ports are becoming more frequent, driving demand for larger, exceptionally well-located distribution and logistics facilities such as the Dallas Logistics Hub,” said Edward Romanov, President & Chief of The Allen Group. “This is due o the fact that the sheer volumes of goods that flow through our nation’s seaports have overwhelmed the port’s capacity to process the goods.”

Because of their structural limitations or technological shortcomings, many of the facilities at surrounding ports are too aged, outmoded and illequipped to meet the challenges of the 21st century. Additionally, the cost of land and lease rates around the major sea port markets have increased dramatically, creating an over-developed and overpriced market.

The Dallas Logistics Hub is a key component of the NAFTA infrastructure and will serve as a major “inland port” bringing products form the Ports of L.A./Long Beach and Huston, as well as the western deep water ports in Mexico for regional and national distribution. This prime location in the southern sector of Dallas has very little congestion issues; thereby preventing additional distributions in the supply chain process.

Just days after the successful Dallas Logistics Hub opening in April 2007, with over 1,000 people in attendance, The Allen Group announced they had executed an agreement granting BNSF Railway Company the right to purchase the land within The Hub as the next step in elevating the possibility of a new intermodal facility at this location.

“Under the agreement, BNSF has the right to purchase a minimum of 387 up to a maximum of 530 acres of land within The Hub for construction of an intermodal facility,” explained Daniel McAuliffe, President of Allen Development of Texas. “The site under option fronts 8,000 feet of BNSF track in the Cities of Dallas and Lancaster and represents a portion of the 2.5 miles of BNSF track frontage located within The Hub.”

Additionally, in early June, INVITE, an entity of the State of Nuevo Leon, Mexico, signed a historic Memorandum of Understanding (MOU) to increase the competitiveness of the Interpuerto and the Dallas Logistics Hub. INVITE is simultaneously developing an inland port and manufacturing facility of their own, and the new international  partnership will focus on improving the security, speed and efficiency of moving goods between these two major logistics centers –thus creating an efficient new trade corridor between Mexico and the United States.

Furthermore, the MOU establishes a collaborative of the parties on several issues, including the designation of a customs pre-clearance zone for the development of integrated logistics systems connecting the Interpuerto in Monterrey –Saltillo, Mexico and the Dallas Logistics Hub in Southern Dallas County, Texas. INVITE has also initiated the creation of improved logistics systems between the states of North Eastern Mexico and Texas, designated as NEMEX-TEX, including the development of Monterrey as a Logistics Gateway.

“The objectives on both sides of the boarder are to improve the competitiveness of enterprises established at both locations, as well as to bring the goods movement through the area,” said Leslie Jutzi, Director of Government Affairs and Community Relations for Allen Development of Texas.

The Allen Group anticipates that this proprietary transportation system and formalized relationship with INVITE will result in better delivery times and an increase of competitiveness with Mexican goods being delivered to the Dallas Logistics Hub.

In addition to the MOU signing, The Allen Group has begun construction on two spec warehouse/distribution buildings –192,500 and 633,500 square feet respectively. Commencing this summer, the first two spec buildings are slated for completion in February 2008.

As inland port locations are quickly becoming huge markets for the regional distribution of goods to population centers throughout the U.S. it is important that companies undergo due diligence when searching for industrial , office, warehouse and/or build to suit options and select locations that offer multiple transportation options such as the Dallas Logistics Hub.

Notably, there are only a few prime locations in this country that can accommodate true inland ports. Highway systems have largely been built out and large land positions are limited, expensive and difficult to assemble. Those who are successful at distribution and logistics in the decades to come will be companies that capitalize on identifying large logistical sites, strategically at the nexus of our interstate highway systems.

The Allen Group specializes in the development of high-end industrial, office, retail and mixed-use properties throughout the United Sates. The company’s major focus is the development of logistics parks –“inland ports” –that are strategically situated adjacent to some of the most sophisticated rail, intermodal and highway infrastructure in the country. The Allen Group has developed over one billion dollars in project, ranging in size up to 1.7 million square feet and currently has over 8,000 acres under development across the United States.

For more information about The Allen Group, please log on towww.allengroup.com or for more information about the Dallas Logistics Hub, visitwww.dallashub.com.

Dallas Business Journal

Southern Dallas County: Living the Dream

19 July 2007

Thanks to an ideal geographic location and excellent transportation infrastructure, Cedar Hill, Desoto, Duncanville and Lancaster together known as Southern Dallas County, are among the newest cities in DFW that stand to benefit excessively from current logistic trends which are being driven by global trade.

Due to the proximity to major interstates, the Union Pacific Intermodal and the new Dallas Logistics Hub, a 6,000-acre logistics hub being developed by The Allen Group, these cities have opportunities available that may have dreamed about 20 years ago, but never thought would actually come to fruition – and certainly not this quickly.

Each city is hustling to prepare for the quick growth they are beginning to see with new industrial, housing, retail and office space.

City Growth

Between 1990 and 2004, the population in Southern Dallas County, also known as “SoDoCo,” grew by nearly 28% – a healthy growth rate among suburban areas nationwide. From a population of 108,385 people in 1990, the area has grown to over 148,919. That population growth is expected to increase as the wave of new development continues to gain
momentum.

Experts say that when the Dallas Logistics Hub is fully complete in the next 30 to 40 years, it is expected to employ about 30,000 workers in as much as 60 million square feet of distribution, manufacturing, office and retail facilities. About 65 percent of the land will be set aside for industrial and distribution space, with offices and other commercial development on the rest.

The hub is expected to create a property tax base of $2.5billion. Company officials predict that the direct economic impact of construction and employment at the facility through 2035 will be $68.8 billion.

Development and Construction

To support the global trade demands of new ports off of Mexico that will drive traffic through North Texas, there are a number of large industrial projects underway and that have just been completed. As mentioned above, The Allen Group has broken ground on the Dallas Logistics Hub which is a 6,000-acre development that is almost equally
located in Dallas, Lancaster, Wilmer and Hutchins.

Duke Realty Corp. has had some early success with their phase one project adjacent to the Union pacific Intermodal in Hutchins. Proctor & Gamble signed a short-term lease for the new 626,100 sq.ft. property. Also, underway form Duke is the 872,000 sq. ft. Unilever built-to-suit project which should be completed in lat 2007. First, Industrial, Courtland Development, and Industrial Works Investment Fund all have large projects under way, all of which are currently scheduled for completion in late 2007.

In the planning stages, there are currently 19 industrial projects totaling more than 8.7 million sq. ft. of space on the horizon.

And with industrial growth of this size, the retail and office markets are not lagging behind. Each of the Southern Dallas Counties are preparing for this growth by revitalizing or creating a more active downtown for their cities, which has historically been lacking. Plans are set to develop mixed-use areas in order to remain economically wealthy and to retain young professionals which some suburbs are dramatically losing.

One example is Desoto where they are currently developing a town square in hope to drive more growth within the city, improve its image, and increase involvement with residents in their town. Cedar Hill will bring to market the 800,000 square foot Uptown Village at Cedar Hill that will include two department stores and room for more than 80-
shops and restaurants, which is set to open March 2008. This is the biggest retail project in the southern sector has seen in about 30 years. On the residential front, the Southern Dallas County are has had over 1,000 annual closing of new homes.

With all roads leading to Southern Dallas County, only opportunities lie ahead for the area to be the home of the new “it” industry in North Texas –the “it” being global logistics. Many believe Southern Dallas County could become the largest economic engines in the region, generating billions of dollars in investment and tens of thousands of new jobs.

The Dallas Morning News

Economic Growth May be in Store for DeSoto

13 July 2007

Attracting new business to DeSoto has been a talking point in the city for years. Scott D. Livingston, director of the DeSoto Economic Development Corp., projects that DeSoto’s population could increase from the current 47,600 to 70,000 or 80,000 in the next few decades as the Dallas Logistics Hub takes shape.

Most recently, in the May City Council election, every candidate recognized the need for commercial and industrial growth to keep pace with residential growth in the bedroom community.

In years to come, however, that talking point could become moot as the Dallas Logistics Hub and the Union Pacific Corp.’s Dallas Intermodal Terminal take shape.

Both are expected to be a boon to the economy in southern Dallas County, specifically in Lancaster, Dallas, Wilmer and Hutchins. Outlying towns in southern Dallas County, such as Mesquite, Balch Springs and DeSoto, and Ferris and Red Oak in northern Ellis County expect the ripple effect.

Because of its proximity to Interstate 35E and Interstate 20, businesses are recognizing DeSoto as one of the region’s hot spots for growth.

The development hub – when completed in 30 to 40 years – is expected to employ about 30,000 workers in as much as 60 million square feet of distribution,
manufacturing, office and retail facilities.

“We fully recognize we’re not going to be an immediate or direct beneficiary of the inland port because it’s farther from us,” said DeSoto Economic Development Corp. director Scott D. Livingston. “But we anticipate, and we’ve already seen proof, that we probably will be indirect beneficiaries of the
spillover effect.”

He also said he didn’t expect the effect to happen as quickly as it has. Before April’s groundbreaking on the 6,000-acre logistics facility, Mr. Livingston was getting calls from developers wanting to be part of the development, but not in it.

“I think people realize this is a real deal and it’s moving pretty quickly,” Mr. Livingston said.

Developer Hillwood broke ground in March 2006 on a 113-acre site near I-35E and Danieldale Road and plans to build a 1.8 million-square-foot distribution
center. The company recently released plans for a 550,000-square-foot building to be constructed at the site.

Six hotels are also scheduled to open or start construction within six months to a year, Mr. Livingston said.

DeSoto’s population stands at about 47,600. With the general growth in southern Dallas County, and DeSoto attracting the development’s workers, Mr. Livingston projects the city’s population could reach as high as 70,000 to 80,000 in the next couple of decades.

Former DEDC president and current council member Sandy Respess said DeSoto’s growth is in need of change. In the last few years, residential growth has hovered around 10 percent, with retail and commercial at a 2 percent and 3 percent clip, respectively, he said.

“We’re becoming a city of residences without a proper balance of tax base and job base,” Mr. Respess said.

An April 2006 study by the University of North Texas Center for Economic Development and Research shows that DeSoto has a large pool of employees who regularly commute more than 30 minutes to work. New businesses will help keep that money in DeSoto and create jobs closer to home, said Dr. Terry Clower, associate director at the center and co-author of the study.

“Of course the advantage DeSoto has is they already have workers who are looking to find jobs closer to home. In that sense it’s a good, positive gain for
them,” he said. “Working three miles down the road as opposed to 23 makes a lot of sense.”

Commercial Property News

Construction Starts on River Plaza Corporate Center in Sacramento

July 10, 2007

Construction on the first six buildings of the12-building Class A River Plaza Corporate Center in Sacramento’s South Natomas market has begun, according to The Allen Group and the California Farm Bureau Federation, co-developers of the project.

The two-story buildings in the 175,000-square-foot office park will be sold rather than leased. Ranging in size from 11,000 square feet to 17,000 square feet, each building can be sold individually or divided up.

Office sizes as small as 4,500 square feet will be available for sale, according to a release from San Diego-based Allen Group. Each building will have garage and surface-level parking, private elevator access and 24-foot vaulted ceilings on the second floor.

The first six buildings should be available by early 2008. The 11-acre site is located at 2500 River Plaza Drive, adjacent to the California Farm Bureau Federation’s headquarters. The property has access to Interstates 5 and 80 and is close to downtown Sacramento and the airport.

A construction timetable for the remaining six buildings was not available by press time today.

The Allen Group, a developer of industrial and office properties across the western United States, announced the joint venture with the California Farm Bureau Federation nearly two years ago. The architect is Smith Consulting Inc. and the general contractor is Brown Construction. CB Richard Ellis Inc. of Sacramento, led by senior vice president Greg Levi, is marketing the buildings. Bank of America is proving the construction funding.

Meridian Plaza, a 12-story Class A office building near the California State Capitol in Sacramento was also developed by The Allen Group. The firm sold it to Angelo Tsakopoulos’ AKT Development in 2004, according to a report by Jon Ortiz in today’s Sacramento Bee. The Allen Group has also developed Diamante Del Mar, a Class A office building in San Diego and Kelly Corporate Center IV, an office complex in Carlsbad, Calif.

CPN reported April 19 that The Allen Group and BNSF Railway Co. reached a deal to build an intermodal facility at the Dallas Logistics Hub, a 6,000-acre master-planned logistics park in southern Dallas County in Texas. Under the terms of the agreement, BNSF would buy between 387 and 530 acres at the hub, which would serve as an inland port for distributing goods to the Central and Eastern U.S. The Allen Group announced in April that it was going to build two speculative industrial buildings, one totaling 640,000 square feet and the other about 210,000 square feet, in the logistics hub.

The Sacramento Bee

Natomas Office Park Afoot

July 10, 2007

The San Diego-based development firm that built Meridian Plaza in downtown Sacramento has started construction on a 175,000-square-foot office park in South Natomas.

The Allen Group is selling space in its 12-building River Plaza Corporate Center instead of leasing it. The plan calls for the two-story office buildings to range from 11,000 square feet to 17,000 square feet at the 2500 River Plaza Drive site. CB Richard Ellis, the developer’s broker, is offering units for sale down to 4,500 square feet.

The Allen Group plans to finish River Plaza’s first six buildings on the 11-acre site in early 2008. The company built the 4-year-old Meridian Plaza on L Street before selling it to Angelo Tsakopoulos’ AKT Development in 2004.

Central Valley Business Times

New Office Project Underway in Central Valley

July 10, 2007

The Allen Group, a developer of commercial properties across the United States, says it has started building River Plaza Corporate Center, a 175,000 square foot “for sale” office park development in Sacramento.

If built out as now planned, it will have 12 separate two-story office buildings, ranging in size from 11,000 square feet to 17,000 square feet. Each building will be available for sale individually or can be divided into first and second floor units, allowing buyers to purchase unit sizes as small as 4,500 square feet. Each building will have its own private “residential style” garage, surface level parking, private elevator access, and 24-foot vaulted ceilings on the second floor.

Located at 2500 River Plaza Dr., the project is situated on 11 acres along the Sacramento River, directly adjacent to the California Farm Bureau headquarters in South Natomas. Phase one will consist of six buildings to be constructed and available by the first quarter of next year.

River Plaza is a joint development between The Allen Group and the California Farm Bureau Federation. The project architect is Smith Consulting Inc. and the general contractor is Brown Construction. The project’s construction lender is Bank of America and the marketing brokers are CB Richard Ellis Inc.

dBusinessNews.com

The Allen Group Starts Construction on For Sale Office Project in Sacramento

Class A Office Design Elements First of its Kind in the Sacramento Market

July 10, 2007

SACRAMENTO — The Allen Group, a major developer of commercial properties across the United States, announced the start of construction on The River Plaza Corporate Center, a 175,000 square foot “for sale” office park development located in Sacramento, Calif.

The River Plaza master-plan details 12 separate two story office buildings, ranging in size from 11,000 square feet to 17,000 square feet. Each building will be available for sale individually or can be divided into first and second floor units, allowing buyers to purchase unit sizes as small as 4,500 square feet.

Each building will have its own private “residential style” garage, surface level parking, private elevator access, and 24-foot vaulted ceilings on the second floor. The site will also include extensive landscaping with outdoor eating areas and water features.

Located at 2500 River Plaza Drive, the project is situated on 11 acres along the Sacramento River, directly adjacent to the California Farm Bureau headquarters in South Natomas. River Plaza has immediate access to Interstates 5 and 80 and is only minutes from downtown Sacramento and the international airport.

Phase one will consist of six buildings to be constructed and available by 1st Quarter 2008. One of the first six buildings will be constructed as a model with full tenant improvements, available to view by appointment.

River Plaza is a joint development between The Allen Group and the California Farm Bureau Federation. The project architect is Smith Consulting Inc. and the general contractor is Brown Construction. The project’s construction lender is Bank of America and the marketing brokers are CB Richard Ellis Inc.

For more information on the River Plaza Corporate Center or to inquire regarding purchasing office space please contact Greg Levi, Senior Vice President, CB Richard Ellis of Sacramento at 916-446-8285 .

Editor’s Note: Site plans & building design photos are available upon request.

The Allen Group The Allen Group, one the nation’s fastest growing privately held commercial development firms, specializes in the development of high-end industrial, office, retail and mixed-use properties throughout the United States. The Allen Group developed over one billion dollars in projects ranging in size up to 1.7 million square feet and currently has more than 8,000 acres under development across the United States.

The Allen Group is based in San Diego with regional offices in Visalia, Bakersfield (Calif.), Dallas and Kansas City. For more information about the Company, please visitwww.allengroup.com.

Sacramento Business Journal

Allen Group Building Natomas Office Park

July 9, 2007

San Diego-based The Allen Group has started construction of a 175,000-square-foot office park on 11 acres in South Natomas at 2500 River Plaza Drive, adjacent to the California Farm Bureau headquarters.

The office park is a joint effort between The Allen Group and The Farm Bureau Federation.

The development consists of 12 buildings of 11,000 to 17,000 square feet each, being built by Sacramento’s Brown Construction and marketed for sale by CB Richard Ellis.

The Allen Group is a private developer of industrial, office and retail property.

Logistics Today

Improving Texas-Mexico Logistics

01 July 2007

Two entities-one commercial, one governmentalagree to establish an efficient new trade corridor between the countries.

Signing a Memorandum of Understanding (MOU) were US-based Allen Group which is developing the 6,000 acre Dallas Logistics Hub and the State of Nuevo Leon Mexico’s INVITE, which is developing the Interpuerto, an inland port and manufacturing facility. The aim is to improve logistics systems between the southern sector of Dallas County and Monterrey-Saltillo in Mexico.

An important point covered in the MOU is establishment of a collaborative Customs preclearance zone. “Customs pre-clearance is important for both parties,” notes Nuevo Leon’s executive coordinator for INVITE, Ambassador Francisco Javier-Alejo. “It will expedite the flow of goods between Nuevo Leon and Texas and provide additional security for enterprises operating within the facilities.”

Motivation for both entities signing the MOU is their perception that “inefficient logistics systems in the movement of goods between Mexico and the US is a major impediment to the ability to compete with products imported from other parts of the world.” The developers seek to create a new and proprietary transportation system to combat these issues.

Dan McAuliffe, Allen Group president, says, “This proprietary transportation system will result in better delivery times and increased competitiveness of Mexican goods being delivered to the Dallas Logistics Hub.

Besides developing Monterrey as a Logistics Gateway, INVITE is working on several projects to improve the logistics systems between Texas and the states within Northeastern Mexico. The initiative is being called NEMEX-TEX.