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Several real estate companies are teaming up to redevelop a failed retailer’s distribution campus north of Dallas.
In April, longtime Dallas-based retailer Tuesday Morning Corp. said it was closing all its stores and liquidating its merchandise. The off-price retailer had filed for bankruptcy earlier this year.
Now real estate developers plan to revamp Tuesday Morning’s huge distribution complex on Inwood Road north of LBJ Freeway.
Austin-based investor Pennybacker Capital Management and Fort Worth-based M2G Ventures bought the almost 1.2-million-square-foot office and industrial campus in Farmers Branch in 2021.
The companies are now working with Lee and Associates and Rich Young Co. to make “significant capital improvements” in the buildings, which date to the 1970s. About a half dozen large office-warehouse buildings are included in the 47-acre campus on Inwood and Beltwood Parkway.
Lee and Associates and Young Co. are hunting new tenants to fill the properties.
“The size of this portfolio offers multi-tenant optionality and serves as one of the largest infill urban industrial plays in recent news,” Adam Graham, principal at Lee and Associates, said in a message. He said the redevelopment is “creating optimal value for future occupants.”
The property firms are rebranding the campus as Inbound on Inwood. The former distribution buildings are located north of the Galleria Dallas in an area seeing redevelopment with new apartment and retail construction.
The Tuesday Morning campus is one of the largest blocks of commercial space in that area.
“We believe this project will significantly contribute to the vibrant economic landscape in North Dallas,” Young Co. president Rich Young Jr. said.
Building owners Pennybacker Capital and M2G Ventures have previously partnered on industrial redevelopments in Dallas. The companies redeveloped a nine-acre office and showroom complex northwest of downtown Dallas in the Brookhollow district into an urban industrial project called Proto Park. Last year, M2G Ventures bought the six-building Commonwealth Business Park near Stemmons Freeway in Dallas for a redevelopment.
While the warehouse district around Tuesday Morning’s Inwood campus is one of the Dallas-area’s older industrial sectors, buildings there are still in demand.
Nearby warehouse and office properties are 95% leased, according to Lee and Associates and Young Co.
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