Stonelake Capital Partners, a real estate private equity firm based in Texas is planning on developing its Georgetown Logistics Park, which will be a 625,000-square-foot warehouse and distribution center, built on a 50 acre site in the Austin suburb. This project will be financed through the Stonelakes’s sixth opportunist real estate fund, which has raised a total of $550 million, exceeding the company’s original goal of $500 million. Boston-based Goodwin Procter LLP served as fund formation counsel for Stonelake.
According to Stonelake, the Georgetown Logistics Park is being built on a speculative basis and the project scope covers three industrial buildings, which will be built along Aviation Drive, eastward of Georgetown Municipal Airport, at the southwest corner of interstate I-35 and Texas 130.
Phase I of the development has been revealed to be a 431,360-square-foot cross-dock building. Construction is expected to commence by the first quarter of 2022, with the completion time of the first delivery space, set for the third quarter of 2022; while the entire construction is to be completed by the first quarter of 2023. Eikehorst and Stonelake’s John Detamore will be in charge of the leasing contracts after the industrial park is completed.
The developer believes the Georgetown Logistics Park is more suited to larger warehouse/distribution and manufacturing tenants in the greater Central Texas region and also said that this project will bring the total industrial portfolio of Stonelake, to 1.5 million square feet in Austin.
Travis Eickenhorst, the Stonelake partner behind the development, pointed out that the Georgetown Logistics Park needs to be built on a speculative basis which will be determined by Stonelake’s financial strength.
Eickenhorst also explained that building on a speculative basis will enable the company to capitalize on the increasing demand for larger tenant warehouse space as a result of various e-commerce, last mile delivery and manufacturing tenants that are in need of such spaces.