Incentives Pave Way For Former Transamerica Building To Be Rebuilt As 2-Building Distribution Facility
Work is set to begin in early September on a new multibuilding distribution facility in Plano, following a $750K incentive agreement approved by the city in June.
Per filings with the Texas Department of Licensing and Regulation, Orlando-based firm Foundry Commercial plans to build two buildings of nearly 227K SF and 96K SF at the former location of financial services company Transamerica at 2700 W. Plano Parkway. The spec buildings are expected to cost $10.7M and $5.3M, respectively.
“As a city like Plano that is nearing build out capacity, we're looking at areas that may need to change because of ongoing vacancies,” Plano Economic Development Director Doug McDonald told Bisnow of the 41-year-old office building. “On the flip side, we have a very strong industrial manufacturing, high-tech market here in North Texas, and it's driving a lot of land use deals around the region.”
The city’s incentive agreement states Foundry will demolish the existing office building as part of the redevelopment. The grant requires Foundry to make improvements to the property of at least $21M before the end of 2026, but the firm’s state filing lists an expected completion date of February of that year.
To draw technology companies, the city has designated an 800-acre industrial park in southeast Plano as the Research/Technology Crossroads.
“When we have projects come in and big companies looking for space, we don't have space for them here in Plano, but we continue to get the demand that people want to be in Plano,” McDonald said. “We saw this opportunity to work with Foundry and be creative on our new economic development program for building modernization. We think this is an asset that probably needs to change from an office use to another use.”
Taiwanese technology company Sysgration America Corp. is in the midst of a $20M project for its new advanced manufacturing facility just down the street from the Foundry property. Plano City Council approved a $2.4M economic incentive package for Sysgration in February, and construction is expected to wrap up in Q1 of next year.
Plano City Council also approved $6.2M in incentives over a 15 years earlier this month for Raising Cane’s expansion at its new home base at 5320 Legacy Drive. Cane’s plans to create up to 1,020 full-time equivalent jobs and make $20M in building improvements. The company plans to move into its new campus sometime in 2025, following a remodel.
