Fort Worth Lands Another U.S. Headquarters: This Time A Korean Tobacco Company Is Setting Up Shop
Korea-based conglomerate KT&G USA Corp. inked a 10-year lease to plant its U.S. headquarters and distribution center in North Fort Worth.
Known as the fifth-largest tobacco firm in the world, KT&G will be the first tenant to move into the Fossil Creek Crossing industrial development at 5501 Sandshell Drive in Fort Worth.
The new development fronts Interstate 35W and offers 213K SF of Class-A project space. KT&G leased 73K SF to house its U.S. headquarters and distribution center; 71K SF will be used for a distribution center and approximately 2K SF will be reserved for headquarters offices.
The U.S. hub for KT&G in Fort Worth is expected to be operational within six weeks. KT&G previously operated out of a Plano office. The company’s chief financial officer plans to continue leasing a small Plano office, while the rest of the U.S. headquarters and distribution center will operate out of the new Fort Worth location.
CBRE’s Scott Moore, Bob Scully and Brice Wells represented the landlord, Fossil Creek Owner LLC. The tenant hired Bradford Commercial Real Estate Services’ Nick Talley to locate its U.S. headquarters site.
Multiple factors, including the need for space within Foreign Trade Zone-designated properties, drove the Korean company’s decision to ink a deal with Fossil Creek Crossing.
By securing space at Fossil Creek, the firm gains signage on a major highway, as well as access to a cross-dock warehouse offering 32-foot clear height, sprinkler systems, 44 dock-high doors, two drive-in bays, 130 parking spaces and 30 truck stalls. The tobacco company will have direct access to freeways, allowing the firm easy access to distribution routes and Dallas-Fort Worth International Airport.
“Fossil Creek Crossing’s freeway exposure was a big deal for my client,” Tally said. “It also fit KT&G’s distribution plan better than the FTZ projects closer to DFW International Airport.”
Founded in 1899 as an imperial agency for cigarette and ginseng production, KT&G is known for developing and distributing ginseng plant seeds and tobacco products, including e-cigarettes.
This is the second time in a month Fort Worth has landed a major corporate relocation.
Last month a $6.5B farm store retailer, Mid-States Distributing Co., signed a deal to move its headquarters from Minneapolis to the Mercantile Center in North Fort Worth.
