January 7, 2023
Industrial Developer Begins Construction On Buildings To Extend Dallas Area ExpansionReturn to Blog
A newly formed Dallas-based industrial real estate firm has begun construction on two industrial buildings in North Texas with plans to continue its expansion in the region.
The Dallas-Fort Worth area, home to the nation's largest pipeline of industrial space, is where Box Investment Group has decided to focus its efforts with the development of Skyway Logistics Center near Dallas-Fort Worth International Airport in Irving and a four-building industrial park, called M380 Business Park, in Denton.
The real estate investment firm, which focuses on shallow-bay industrial projects, recently broke ground on Skyway Logistics Center, an 84,406-square-foot industrial building at 3260 Skyway Circle North, marking its first project since it was founded by seasoned real estate executive Todd Marchesani earlier this year. Prior to starting his own firm, Marchesani worked at The Staubach Company, Sealy & Company and Holt Lunsford Commercial Investments.
"Historically, this kind of product focused on a niche building catering to a smaller tenant hasn't been built in the market," Marchesani told CoStar News. "Smaller tenants have had limited options for 30,000 to 50,000 square feet of Class A brand new industrial space. We see an increased demand for this project and the limited supply in the market."
In Marchesani's prior role as vice president of development at Holt Lunsford Commercial, he oversaw 14 industrial projects totaling more than 2.7 million square feet of space with a market value of more than $450 million. Having worked throughout the Dallas-Fort Worth market, he has formed strong broker relationships. He is currently serving as president of the North Texas Commercial Association of Realtors and Real Estate Professionals.
The firm plans to keep to its wheelhouse, he said, with a focus on shallow-bay industrial development in the northern growth markets of the Dallas-Fort Worth area with proximity to population density, highway infrastructure and key decision-makers.
Along with Skyway Logistics Center, the firm also plans to begin construction on M380 Business Park, a four-building, 156,090-square-foot park at 1801 N. Masch Branch Road in Denton, in early 2023. The building is expected to be completed by early 2024.
Both projects are being developed on a speculative basis. Box Investment focuses on projects priced between $10 million and $40 million, Marchesani said, which is the firm's "sweet spot," for investment.
"On the Irving project, we have two RFPs, which isn't typical," he added. "Typically, you might begin to see tenant interest when the project is almost done, but the fact we have two RFPs this early shows the high demand there is for this limited space."
Potential tenants range from fulfillment companies, heating and air conditioning companies, pharmaceutical firms and other companies looking to be in close proximity to serve population growth in the region, he said.
The real estate developer is actively seeking additional development opportunities north of Interstate 30 in the Dallas-Fort Worth market. Box Investment plans to continue focusing on shallow-bay projects with buildings totaling 250,000 square feet or less with the ability to lease to even smaller industrial tenants.