The M2G Ventures real estate investment and development company of Fort Worth and Pennybacker Capital LLC real estate private equity firm on Tuesday announced they purchased the 1.19 million square-foot industrial distribution center and corporate store formerly owned by Tuesday Morning in Farmers Branch.
The center is at 14303, 14621, 14601, 14639 Inwood Road and 4404 S. Beltwood Pkwy in Farmers Branch. The agreement includes Tuesday Morning’s 105,000 square-foot headquarters, at 6250 Lyndon B Johnson Freeway in Dallas. Tuesday Morning earlier in January exited bankruptcy.
“We are pleased to partner with Pennybacker to unlock value for Tuesday Morning, while significantly growing our urban industrial portfolio,” Jessica Miller Essl, co-founder of M2G Ventures, said in a release. “This transaction is an important milestone in M2G’s history, for Tuesday Morning, and the industrial market, collectively.”
The 46.7 acres are located along Inwood Road within the 95% occupied Metropolitan Addison submarket, M2G and Pennybacker said.
"M2G and Pennybacker intend to deploy an innovative, value-add approach to investing in urban infill industrial properties in top DFW submarkets," the release said. "DFW is the overall fourth largest industrial market nationwide. With this acquisition, M2G has doubled down on its portfolio of urban industrial assets."
M2G said it's looking for more industrial deals.
"M2G is diving into the new year with a strong ability to be nimble, agile and strategic in deal flows with many more deals to come," the release said. "Specializing in mixed-use, urban and Class A light industrial, and strategic partnerships with legacy asset owners, M2G anticipates continuous growth and success in 2021."
“There is more to come in 2021, but this is certainly a historic moment for all and the market as a whole,” Miller Essl said.
Stephen Williamson and Adam Graham of Lee & Associates represented the partnership on this transaction.
M2G said in the release its investment portfolio is now at $220 million. The company is widely known in Fort Worth for its adaptive reuse projects, including the creation of The Foundry District on the West Side, and several on the Near Southside. But it got its start in industrial, and has been making more acquisitions in the segment.
It's also the exclusive retail partner of the $200 million redevelopment of Mule Alley in the historic Fort Worth Stockyards.
Pennybacker Capital is an alternative investment manager focused on real estate private equity and credit investments. "Pennybacker pursues value, credit, and income and growth strategies across all real estate asset classes and has a proven 12-year investment track record of investing in and/or operating more than $3.2 billion of real estate throughout the United States," the firm said in the release.
Pennybacker's headquarters are in Austin, and the firm has offices in Denver, New York, and Nashville.