DENISON, Texas — Editor's note: This article was originally published in the Dallas Business Journal here.
A Southlake-based land investor earlier this year secured dozens of acres in a fast-growing part of Grayson County, as global companies pour billions of dollars into chipmaking plants nearby.
The buyer, Investment Catalysts LLC, said it plans to hold onto the 75.9 acres of land in Denison until the "market matures," said Kevin Eldridge, who represents the company and works for its affiliate, Cadence Capital Partners LP.
The strategy exemplifies how companies and investors are lining up to put money into the region known as Texoma — which spans eight lightly populated counties across Texas and Oklahoma but is poised for explosive growth.
Investment Catalysts closed on the land in February but the deal was just announced April 10. The commercial real estate group invests primarily in Dallas-Fort Worth and has a diverse portfolio, including multifamily developments, mixed-use developments and master-planned communities. Terrin Bertholf represented the investment company and Younger Partners represented the seller, which was the estate of Douglas Lee Shankles.
The purchase price was not disclosed but Tyler Hemenway, executive vice president at Younger, said in a statement the buyer paid a "good price for the land."
"They’re placing money in the path of growth and have an outstanding exit strategy," Hemenway said.
Richardson-based Texas Instruments Inc. and Taiwanese-owned GlobiTech are building massive semiconductor manufacturing plants in Sherman, roughly 12 miles north of Denison. As those come online in the next few years, and attract suppliers and other companies to Grayson County, land prices are expected to increase along with demand for new commercial developments.
"Those international companies that are expanding up there — we're taking advantage of that bright future for them,” Eldridge said.
Developments taking shape along Lake Texoma, including David Craig’s $6 billion Preston Harbor project, will transform the area's economic landscape. Preston Harbor alone could bring 20,000 residents and 15,000 jobs to the region.
"As a result of that, they may need offices, they may need warehouse space, they may need a variety of things closer to home instead of having to come into the Dallas market," Eldridge said. "So we feel that this land gives us the ability to address and meet those needs."
But Investment Catalysts likely won’t decide on what to do with the land for at least 12 months.
Younger Partners Executive Managing Director John St. Clair and Associate Davis Willoughby, who represented the seller, said many buyers had expressed interest. Some land is still for sale by the estate.
It took about three months for brokers to come together and close the deal. Initially, the Shankles family was looking to hold the land and leave it to heirs but later decided to change plans.
This specific parcel along Farm-to-Market Road 1417 represents a "major thoroughfare" that will later merge into the extension of the Dallas North Tollway, Willoughby said. The land is next to the North Texas Regional Airport, which is a county-owned airport that accommodates private carriers.
"It’s just private flights at the moment," Eldridge said. "However, we believe that there's going to be a lot of commerce that takes place there as a result of it being the closest airport to Sherman and Denison, with all of the big manufacturers that are there."
Furthermore, the parcel is also directly south of Caterpillar’s mining division at 3501 FM 1417. The construction and industrial equipment manufacturer recently said it plans to expand its office space in Irving.
"I don’t think the growth really has even started yet," St. Clair said. "Sherman and Denison are really going to grow up."
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