North Central Texas North Central Texas

Development NewsDevelopment News 4th Quarter 2006 Volume 3 Number 4

Summary The Research and Information Services Department of the North Central Texas Council of Governments (NCTCOG) tracks major developments for the 16-county region as part of the Development Monitoring Program. The fourth quarter summary is an overview of office, retail, and industrial projects over 80,000 square feet (sq ft) and hotels over 80 rooms that were announced, began construction, or were completed between October 1 and Dec. 31, 2006. Also included is a summary of quarterly activity by type and location within the region. At the end of the fourth quarter, 369 commercial developments were being tracked. In addition to commercial developments, NCTCOG’s website includes data on residential developments, schools, and institutions (hospitals, government, etc.). Go to the Development Monitoring page at http://development.nctcog.org/ to access a tool that creates maps and reports by address, zip code and city, in addition to past issues of Development News. Development Monitoring information can also be mapped at http://www.dfwmaps.com/devmon.

Three mixed-use developments opened during the quarter. In Rockwall, the first 120,000 sq ft of retail space opened at The Harbor, located at the southwest corner of I-30 and Lakefront Trail on the shores of Lake Ray Hubbard. A Cinemark theater opened there last July. The development will eventually include a 230-room Hilton

Mixed-Use

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Hotel and condominiums, which are under construction, and an additional 100,000 sq ft of retail that is planned. Two mixed-use developments opened in Dallas. Village on the Green at 5301 Alpha

4th Quarter Snapshot Completed Projects

Office Lincoln R&D II

Methodist Mansfield Professional Bldg. Retail

Prestonwood Town Center Lowe’s Home Improvement

SuperTarget (2) Bass Pro Shops Outdoor World

Pinnacle Point West Shops at Preston Ridge The Shops at Southlake

Marketplace at Highland Village Industrial

Duke Intermodal I Lakeside Trade Center Building II

Lakeside Ranch Business Park 30 & 31 1011 N 28th Ave

Kysor Panel Systems Mouser Electronics

DFW Trade Center Building H Freeport Corporate Center IV

DFW Logistics Center I Skyline Trade Center Building C

SYNSIL Products Began Construction

Office One Victory Park Rosewood Court

One Legacy Circle Stream Realty Data Center

Torchmark HQ Heritage Commons II

Cedar Ridge Office Park Alliance Data Systems

Retail Weatherford Ridge Shopping Center

Burleson Commons Little Elm Towne Crossing Lowe’s Home Improvement

Industrial Trade Center II, III & V

DFW Airport I Coppell Trade Center Building D

Vista Point South Phase II KFS Inc.

Con-way Freight ConAgra

4851 Mountain Creek Parkway National Envelope Corporation

(Cont’d on page 8)

The Harbor mixed-use development in Rockwall opened on the shores of Lake Ray Hubbard.

Road contains 202 apartments and 90,000 sq ft of retail. Cypress Equities developed the retail component and Columbus Realty Partners developed the multi-family units. The Hotel Palomar development at the southeast corner of Central Expressway and Mockingbird Lane includes the renovation of 198 rooms in an existing hotel, 72 condos in the Residences at Hotel Palomar, and 25,000 sq ft of retail in the Shops at Palomar. Phase II of the Residences at Hotel Palomar will add an additional 150 condos.

Mixed-use retail completed - 235,000 sq ft Mixed-use hotel completed - 198 rooms Mixed-use multi-family completed - 274 units

Construction began on two mixed-

use developments. Phase I of Eastside, located at the southeast corner of Central Expressway and Campbell Road in Richardson, includes 435 apartments over 36,000 sq ft of retail space. An additional 65,000 sq ft of retail is planned in the development, which also includes an existing office building. Greenway Investments and Fobare Commercial are developing the commercial component of the project and Post Properties is developing the apartments. Also under construction is The House by Starck and YOO at Victory Park. The 28-story mixed-use project will contain 150 residential units and 30,000 sq ft of retail space.

Mixed-use retail new construction – 66,000 sq ft Mixed-use multi-family new construction – 585 units

There were six mixed-use announcements during the quarter. In Las Colinas, two new mixed-use developments were announced in addition to the Water Street project announced earlier in the year. Palazzo Las Colinas, on 65 acres at the southwest corner of SH 161 and Las Colinas Blvd., will contain 680,000 sq ft of retail, 130,000 sq ft of office and a hotel/condo component. Woodmont Co. is developing the project. Construction is to

begin in the fall of 2007 with delivery in the spring of 2009. Las Colinas Live! is a planned entertainment venue being developed by Billy Bob Thornton and the City of Irving. Located near a planned light-rail station, the development will include 215,000 sq ft of shops and restaurants and a 142-room Watermark Hotel and Spa with 36 condos. Also included in the development will be a convention center, a 7000-person concert showroom, and a 2000-seat equestrian arena. Construction is scheduled to begin August 2007 and to be completed in the fall of 2009. Two developments were announced in Fort Worth. The Boardwalk is a mixed-use development planned by El Mercado Group at the southwest corner of I-35W and Northside Drive. The development will include 80,000 sq ft of retail under second- and third-story townhomes, 98,000 sq ft of office space and a

112-room hotel. South of downtown, Diversified Capital purchased the old St. Joseph Hospital building at 1401 S. Main St. and plans to convert it into a mixed-use project called Joseph’s Garden. The project will contain 100,000 sq ft of office space, apartments on floors six through twelve, and shops and restaurants on the ground floor. In Frisco, Champion Partners has announced a development at the southeast corner of the Dallas North Tollway and

Warren Parkway called Sierra Frisco. Post Properties has purchased 10 acres for 500 apartments and 50,000 sq ft of retail space. Also included in the development will be 400,000 sq ft of office space and a hotel. The sixth project announced during the quarter is by Carrollton Crossing Development at the northeast corner of I-35E and Beltline Road. Plans call for 500,000 sq ft of development that includes residential, retail, office and a hotel.

Mixed-use retail announced – 1,025,000 sq ft Mixed-use office announced – 728,000 sq ft Mixed-use hotel announced – 254 rooms Mixed-use multi-family announced – 536 units

Village on the Green has 202 apartments and 90,000 sq ft of retail.

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Shops and restaurants at The Harbor began opening in the quarter.

Twelve industrial projects totaling over 3.2 million sq ft were completed during the fourth quarter. The largest project completed was Duke Intermodal I in Hutchins. Proctor & Gamble has leased the entire 626,100 sq ft building. Three buildings were completed in Flower Mound. Hillwood developed the 379,700 sq ft Lakeside Trade Center Building II at 709 Enterprise Drive. Nearby, LNR Property Corp. finished the first two buildings in their Lakeside Ranch Business Park. Building 31 at 701 Lakeside Parkway contains 277,000 sq ft and Building 30 at 801 Lakeside Parkway contains 66,000 sq ft. Just to the east in Coppell, work wrapped up on DFW Trade Center Building H, a 170,000 sq ft building located at 4521 SH 121. The building is the last development in the park, which was developed by IDI. Three projects with a combined 433,000 sq ft of space were completed near D/FW airport. Bandera Ventures and Crow Holdings developed the 205,000 sq ft Ten Eleven 28th Avenue. Nearby, Prologis completed Freeport Corporate Center IV. The 114,600 sq ft building is located at 9250 Royal Lane. On the north side of the airport is the 113,640 sq ft DFW Logistics Center I. AMB Property Corporation developed the project, which sits at

the northwest corner of Airfield Dr. and Minters Chapel. In Fort Worth, Kysor Panel Systems opened a manufacturing plant at 4201 Beach Street. The company manufactures walk-in coolers and freezers in the new 182,482 sq ft facility. Bob Moore Construction was the general contractor. Also in Tarrant County, Mouser Electronics completed work on a 259,000 sq ft expansion at their headquarters in Mansfield, bringing the total space to 432,000 sq ft. Mouser, a catalog distributor of electrical components, will add 300 jobs at the location. In Mesquite, work was wrapping up at the end of the quarter on Skyline Trade Center Building C at the southwest corner of Skyline

Drive and Peachtree Road. The 492,000 sq ft Building C is the second building completed in the four building center being developed by IDI. Lastly, Mineral Technologies completed work on a new $19 million plant in Cleburne at

3202 Windmill Road. The plant will produce 200,000 tons annually of SYNSIL Products, a new composite material for the glass industry.

Lakeside Ranch Business Park Building 31 in Flower Mound.

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Hillwood developed Lakeside Trade Center Building II in Flower Mound.

Proctor & Gamble has leased all of Duke Intermodal I in Hutchins.

Industrial

DFW Trade Center Building H at 4521 SH 121 in Coppell.

Construction began on eleven industrial projects totaling over 3.2 million sq ft. The largest development is just to the north of D/FW Airport on Esters Blvd., where

Trammell Crow has broken ground on three buildings totaling over one million sq ft. Trade Center II at International Commerce Park will be the largest of the three buildings at 554,500 sq ft. Trade Center III and Trade Center V will be 205,945 sq ft and 279,200 sq ft, respectively. Completion is scheduled for the summer of 2007. Construction of Trade Center IV will follow the other three buildings by four months. Adjacent to the Trammell Crow development, Duke Realty has begun construction of DFW Airport I, a 527,000 sq ft project located at 1040 Trade Avenue. Completion of that project is scheduled for May. Two projects are underway in Coppell. Holt Lunsford has begun work on the 117,737 sq ft Coppell Trade Center Bldg. D at 820 W. Sandy Lake Rd. and Jackson Shaw has started Vista Point South Phase II at 621-645 SH 121, which consists of three flex buildings totaling 114,405 sq ft. At Alliance Texas, site work has begun on a 140,000 sq ft warehouse for KFS Inc. and an 80-door service terminal for Con-way Freight at the southwest corner of Intermodal Parkway and Tradewind Drive. Underway in Fort Worth is a new

facility for ConAgra, a producer of packaged and frozen foods. The 550,000 sq ft facility, which is located at 4601 Gold Spike Dr. in the Railhead development, will employ

400 people at capacity. Completion is scheduled for July. In Dallas, Panattoni has broken ground on a distribution center at 4851 Mountain Creek Parkway. The 441,000 sq ft project is expected to be ready for occupancy in the second quarter of 2007. The last project under construction in the quarter is a new 315,000 sq ft manufacturing plant in Ennis for National Envelope Corporation. The facility, which is located at 4401 Sterilite, will employ 297 people in

the first year of operation. Existing facilities in Grand Prairie and Corsicana will close and operations will be consolidated into the new plant when it opens in July 2007.

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Prologis built Freeport Corporate Center IV at 9250 Royal Lane.

Skyline Trade Center Building C in Mesquite is a 492,000 sq ft building by IDI.

Mouser Electronics added 259,000 sq ft at their headquarters and distribution center in Mansfield.

The 205,000 sq ft Ten Eleven 28th Avenue is near D/FW Airport.

Over 3.7 million sq ft of industrial space in eight projects was announced. Three of the projects are near the Union Pacific Intermodal facility in the Wilmer-Hutchins area. Duke Realty announced an 872,000 sq ft build-to-suit project for Unilever on Wintergreen Road in Hutchins. In Wilmer, Industrial Works Investment Funds announced plans to build the first building in the Sunridge Business Park, a 433-acre development at I-45 and Pleasant Run. Work on the 520,000 sq ft warehouse, called I-45 Transport I, will begin in April. Also in Wilmer, First Industrial Realty Trust announced a 475,000 sq ft warehouse that will be the first building in the Dalport Business Park at I-45 and Beltline. Construction on that project is scheduled to be completed June 2007. In Lewisville, Majestic Realty Co. announced plans to begin Majestic Airport Center DFW on 160 acres at the northwest corner of SH 121 and Edmonds Lane. The first phase will consist of three buildings totaling 1,342,500 sq ft, with completion scheduled for the second quarter of 2007. The center will contain 2.8 million sq ft at full build-out. Trammell Crow announced Trade Center IV at International Commerce Park at 2520 Esters near D/FW Airport. Work on the 243,500 building will trail the three buildings under construction (see above) by four months. Xebec Realty Partners announced that they would add 200,000 sq ft at Northpoint Trade Center on Eight-Twenty Blvd. in Fort Worth. Also announced during the quarter was

a 225,000 sq ft manufacturing plant for Eagle Roofing Products at the Railport industrial park in Midlothian that will employ 200 people in the first year. Construction is scheduled to begin late 2007. And in Denton, United

Copper Industries plans to add 100,000 sq ft of space to their manufacturing and distribution facility at 2727 Geesling Road. Construction on the expansion will be completed by late 2007.

Ten retail projects totaling over 1.4 million sq ft were completed during the fourth quarter. Three of the new developments are in Dallas County, three are in Collin County, and Tarrant and Denton Counties each got two. The largest project completed is Prestonwood Town Center in Dallas at the northeast corner of Montfort Dr. and Beltline Road. Tenants in the 450,000 sq ft center include Barnes & Noble, Office Depot and Circuit City. A Wal-Mart Supercenter opened there in January 2006. Also opening in Dallas was Pinnacle Pointe West at the northwest corner of I-30 and Cockrell Hill Road. Staples and Conn’s anchor the 100,000 sq ft center. Future plans

Page 5

Kysor Panel Systems moved into a new 182,482 sq ft facility.

DFW Logistics Center I was developed by AMB Property Corp. SYNSIL Products completed a new facility in Cleburne.

Retail

Additional stores opened in Prestonwood Town Center.

Mercantile Distribution Center III in Fort Worth was completed in June.

for the site include a 500,000 sq ft warehouse and an additional warehouse or retail space. Holt Lunsford Commercial is the developer. The third project opening in Dallas County was the 120,000 sq ft Bass Pro Shops Outdoor World at the Harbor Point development in Garland. Harvest Partners is developing the project, which is located at the southeast corner of I-30 and Chaha on the shore of Lake Ray Hubbard. Also planned for the site are 16,000 sq ft of additional retail space, restaurants and a hotel. In Collin County, a 173,890 sq ft SuperTarget opened at McKinney Towne Crossing at the northeast corner of SH 121 and Custer Road. Construction continues on the center, which will contain 544,528 sq ft when it is completed. Nearby in Frisco, work was wrapping up at the end of the quarter on Shops at Preston Ridge, a 93,480 sq ft center at the northwest corner of SH 121 and Parkwood. The center is anchored by a 40,000 sq ft Ashley Furniture and a 38,000 sq ft Rooms To Go, which opened in July. Also opening in Collin County was Central Legacy Plaza at the southeast corner of Legacy Dr. and Chase Oaks Blvd. in Plano. A 46,000 sq ft Asian World Market anchors the 91,250 sq ft center. In Tarrant County, The Shops of

Southlake opened at the southeast corner of Carroll and Southlake Blvd. across the street from Southlake Town Center. The 180,000 sq ft first phase is anchored by a 62,252 sq ft Central Market. Phase II will add another 50,000 sq ft of space in 2007. Cencor Realty Services is the developer. In Euless, a new 117,000 sq ft Lowe’s Home Improvement opened in Vineyard Village, which is

being developed by Burk Collins & Co. at the southeast corner of SH 121 and Glade Road. The center will contain 400,000 sq ft upon completion. In Denton County, the first 130,000 sq ft of space opened at Marketplace at Highland Village. Anchors in the first phase of the center include LA Fitness,

Office Depot, Homegoods, TJ Maxx

and Petco. A 203,000 sq ft Wal-Mart Supercenter will follow at the 450,000 sq ft center, which is located at the northeast corner of FM 2499 and FM 407. Opus West is developing the project. The final project completed during the quarter was in Denton at the southwest corner of Loop 288 and Brinker Road. A SuperTarget opened at the 300,000 sq ft Denton Towne Crossing, replacing a smaller store on the other side of Loop 288. A Home Depot opened in the center in May.

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Bass Pro Shops Outdoor World opened a new store in Garland.

SuperTarget in McKinney Towne Crossing at SH 121 and Custer.

Pinnacle Pointe West is anchored by Staples and Conn’s.

SuperTarget in Denton Towne Crossing at Loop 288 and Brinker.

Central Market opened a 62,252 sq ft store in The Shops at Southlake.

Construction began on four projects totaling

861,000 sq ft. The largest development is in Weatherford at the northeast corner of I-20 and S. Main Street. The Weatherford Ridge Shopping Center will contain 300,000 sq ft and is expected to open in October 2007. The Retail Connection is developing the center. In Burleson, work is underway on a new 245,000 sq ft center at the southeast corner of Texas 174 and FM 714. Burleson Commons will include a 42,000 sq ft Screenworks theater that is scheduled to open September 2007. Construction is also underway on Little Elm Towne Crossing at the southwest corner of Eldorado Parkway and FM 423. The 170,000 center will include a Hobby Lobby, a 24 Hour Fitness and a Dollar Tree. And in Dallas, a 146,000 sq ft Lowe’s Home Improvement is under construction at 6011 Lemmon Ave. on the former site of a Coca-Cola building.

Announced during the quarter were seven projects

totaling over 2.6 million sq ft. Centerville Marketplace West will be constructed on the former site of the Eastgate apartments at the northwest corner of LBJ Freeway and Saturn Road. A Wal-Mart Supercenter will anchor the project, which will include 400,000 sq ft to be built in several phases. Another Wal-Mart Supercenter was

announced for the intersection of US 287 and Avondale-Haslet Road near the Sendera Ranch subdivision in north Fort Worth. To the north in Denton County, Trophy Design & Development Associates announced a 1.6 million sq ft lifestyle center called Northlake Town Center at the northeast corner of I-35W and FM 1171. The open-air center will include office space and a hotel in addition to

shops and restaurants. Construction is scheduled to begin in the spring or summer of 2007. Also announced in Denton County is The Shops at Prestonwood in Carrollton. Holigan Investment Group is developing the 125,000 sq ft center, which will be located at the northwest corner of Hebron Parkway and Marsh Lane. Construction is scheduled to begin in March on the 150,000 sq ft Grapevine Mills Crossing at the southwest corner of SH 121 and Grapevine Mills Boulevard. Brytar

Cos. is the developer. The final two projects announced are being developed by Underwood Financial in Collin County. At Celina Town Center, a 48,000 sq ft second phase will be added next to an existing Brookshire’s Grocery, with plans calling for a 150,000 sq ft third phase to be added on an adjacent lot. Anna Town Center will also be anchored by a Brookshire’s Grocery and will total 100,000 sq ft.

Page 7

Ashley Furniture and Rooms To Go anchor the 93,480 sq ft Shops at Preston Ridge at the corner of SH 121 and Parkwood in Frisco.

Asian Market at Central Legacy Plaza in Plano.

Marketplace at Highland Village opened at FM 2499 and FM 407. The new Lowe’s Home Improvement at Vineyard Village in Euless.

Two office projects were completed during the quarter. In Plano, Lincoln R&D II is a three-building development with a total of 118,000 sq ft. Lincoln Property Co. developed the project, which sits at the southeast corner of Tennyson Parkway and Pinecrest. And in Mansfield, the 90,000 sq ft Professional Building I opened at Methodist Mansfield Medical Center, located at 2700 E. Broad Street.

Construction began on almost 1.7 million sq ft of office space in eight projects. The largest two projects underway are in the Dallas Uptown area. Hillwood has started work on the 456,000 sq ft One Victory Park at 2200 Victory

Avenue. Completion of the 20-story building is scheduled for July 2008. At Cedar Springs and Pearl Street, CarrAmerica Realty Corp. and Rosewood Property Co. broke ground in October on the 19-story Rosewood Court. The 400,000 sq ft project is scheduled to be completed in the spring of 2008. Three projects are underway in Collin County. In Plano, Trammell Crow Co. is constructing the 213,000 sq ft One Legacy Circle at the northeast corner of the Dallas North Tollway and Legacy Drive in Plano that will be completed December 2007 and Stream Realty is building a 150,000 sq ft data center at the northwest corner of Spring Creek and Pinecrest. Also in Collin County, Torchmark is building a new 150,000 headquarters in

McKinney at 3700 S. Stonebridge that will employ 500 people. At Alliance Texas in north Fort Worth, Hillwood has started work on the 120,000 sq ft Heritage Commons II at the northwest corner of I-35W and Legacy Crossing. In Southlake, Panattoni has broken ground on a three-story, 101,500 sq ft building at Cedar Ridge Office Park, located at the northwest corner of SH 114 and Carroll Avenue. A 30,000 sq ft, two-story building and five smaller buildings have already been completed in the park. Finally, Alliance Data Systems is building a 77,000 sq ft call center on Sterilite Drive in Ennis. The center will open in April 2007 with 546 employees.

The biggest office announcement of the quarter was a new headquarters for Blue Cross Blue Shield of Texas (BCBSTX) in Richardson. Koll Development Company will build the one million sq ft facility at the northeast corner of North Central Expressway and Lookout Drive. BCBSTX will consolidate 2700 employees from four locations into the new headquarters in 2010. Another large announcement in Richardson is the renovation and expansion of the 109-acre Alcatel site at Collins Blvd. and International Parkway into a two million sq ft data center. Tod Fobare is developing the project, which is called Collins Technology Park. In Frisco, Cousins Properties and Hicks Holdings are developing One Champions Park at the southeast corner of Gaylord Parkway and the Dallas North Tollway. An eight-story, 150,000 sq ft building is planned, but the size could go up to ten stories and 200,000 sq ft if demand warrants. Construction is scheduled to begin by the summer of 2007. And in Irving, Opus West Development announced a two-building project at the northeast corner of SH 114 and Longhorn Drive. The first of the two 112,000 sq ft buildings is scheduled to be completed by October 2007.

Construction began on seven hotels in the fourth quarter. In Frisco, the 120-room Holiday Inn Starcenter is going up at the northeast corner of Parkwood Blvd. and Warren Pkwy., and a 112-room Homewood Suites is under construction just to the south at 3240 Parkwood Boulevard. The Holiday Inn is expected to open in June and the Homewood Suites will open in August or September 2007. Also in Collin County, work on the 176-room Nylo Hotel at Legacy Business Park is underway at the northwest corner of Preston Rd. and Headquarters Drive in Plano. Construction will take about a year. Three hotels are underway in Tarrant County. A 126-room Holiday Inn is being built in Fort Worth at 4635 Gemini Place near I-35W and Meacham Boulevard. Completion is scheduled for the end of 2007. In Mansfield, a Holiday Inn Express with around 80 rooms is under construction at the northwest corner of US 287 and Broad Street. And in Arlington, a 97-room Hampton Inn & Suites is under construction at the southeast corner of I-20 and Collins. The seventh hotel under construction is a 230-room Hilton at The Harbor mixed-use project in Rockwall on Lake Ray Hubbard.

Announced during the quarter was an Element

Hotel at the southwest corner of I-635 and Beltline in Irving that will be open in 2008.

Page 8

Hotel

Lincoln R&D II has 118,000 sq ft in 3 bldgs.

Professional Bldg. I at Methodist Mansfield.

4th Quarter Snapshot (cont’d from page 1)

Announced

Office Granite Properties

The Carnegie Duke Realty Office

Retail

Centerville Marketplace West Wal-Mart Supercenter

Northlake Town Center The Shops at Prestonwood Grapevine Mills Crossing

Celina Town Center Anna Town Center

Industrial Unilever

I-45 Transport I Dalport Business Park Building I

Majestic Airport Center DFW Trade Center IV

Northpoint Trade Center Eagle Roofing Products

United Copper Industries

Office

Quarterly Activity Summary

Page 9

All Projects Under Development by Type (Includes Conceptual, Announced and Under Construction)

110 107113 111

95106

97 98

87 90

7163 62

6672

35 3844

53

68

0

20

40

60

80

100

120

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Retail Industrial Off ice Mixed-Use

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1

1.5

2

2.5

3

3.5

4

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4th05 1st06 2nd06 3rd06 4th06

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Retail Off ice Industrial

Square Footage of Construction That Began Each Quarter

Number of Projects Under Development at the End of the Quarter

(Includes Conceptual, Announced and Under Construction)