$130M McKinney development, office tower auction and other real estate news

A Dallas developer plans to build a $130 million logistics park at the northeast corner of U.S. 75 and Laud Howell Parkway in McKinney.

Formation Interests purchased the 118-acre property last week to build The Gateway at Formation Park, a 715,000-square-foot logistics and distribution park. Construction is expected to start on the first phase of the project this summer, said Adam Herrin, the company’s CEO.

The site’s location is a big part of its appeal, he said. It’s located near the planned $1.3 billion Long Branch development and close to the region’s fastest-growing cities.

“The future [U.S. Highway] 380 bypass is going to be going through this location,” Herrin said. “What we’re trying to do is capture a lot of the advanced manufacturing businesses that are showing up to support data center use — as well as Texas Instruments and [chip manufacturing].”

The six-building campus is expected to finish in two or three years once construction starts. It will be built in two phases, Herrin said.

The seller was a partnership that included Rex Glendenning’s One Longhorn Corp. and North Texas Natural Select Materials led by Barry Rich and Bill Penz. Glendenning owned the land for over 35 years.

Matthew Kiran of REX Real Estate represented both parties in the transaction.

Josh Barnes and Blake Troiani with Holt Lunsford will handle leasing for the development. 

“This development is strategically located to meet the increasing demand for modern logistics and distribution facilities in one of the fastest-growing regions in Texas,” Kiran said. “We are excited to see Formation bringing a next-generation business park and logistics center to McKinney and contribute to the area’s ongoing economic expansion.”

A 15-story office tower near Love Field will soon hit the auction block.

Younger Partners listed the 1111 W. Mockingbird Lane property on the online platform LoopNet. The auction will go from June 22 to June 24. Bids start at $2.75 million.

The nearly 269,000-square-foot tower is about half-leased and was once home to Regions Bank’s Dallas office. The building was built in 1973.

The property has been owned by Dallas-based Ricchi Group since 2012. The Dallas Central Appraisal District values the 6-acre property at nearly $15 million for tax purposes.

Dallas-Fort Worth home prices decreased 1.7% in March compared with the previous year, according to an index tracking home price changes. 

The S&P Cotality Case-Schiller U.S. National Home Price NSA Index is designed to track the price path of typical single-family homes across different metropolitan areas and aims to provide a more accurate picture of market trends.

The metro area had one of the larger declines among the 20 largest U.S. cities monitored by the index. North Texas was also behind the national average — which increased 0.7% in March from a year earlier — but below February’s 0.8% rise.

“More than half of the 20 major U.S. housing markets recorded year-over-year price declines in March, reflecting a broadening and deepening housing slowdown,” Nicholas Godec, head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices, said in the report.

Inflation outpaced national home price appreciation for the 10th consecutive month, Godec said. 

The median price for a D-FW home in April is about $390,000, down 2.3% from last year, according to the MetroTex Association of Realtors.