First Citizens Provides $24.5 Million in Financing for Texas Industrial Project

Rhea-AI Summary

First Citizens Bank has announced a $24.5 million construction financing deal for the 121 Commerce Center, a new industrial property in Grapevine, Texas. The project, owned by an affiliate of GTIS Partners, will cover over 272,000 square feet and feature 36-foot ceilings, 54 truck doors, and more than 350 parking spaces. Strategically located near major highways and the Dallas-Fort Worth airport, construction has already begun, with completion expected by the end of the year. The project aims to support regional distribution needs, highlighting the collaborative efforts and expertise of both First Citizens and GTIS Partners.

Positive

• First Citizens secured a $24.5 million financing deal, indicating strong business capability.
• The project covers over 272,000 square feet, demonstrating significant scale and potential impact.
• Strategic location near major highways and Dallas-Fort Worth airport adds logistical advantages.
• Partnership with GTIS Partners, a well-known developer, enhances credibility and future collaboration prospects.

Negative

• The completion date is set before year-end, presenting a tight deadline and potential risk of delays.
• Construction projects inherently carry risks including cost overruns and market demand fluctuations.

News Market Reaction

-0.93%

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-0.93% News Effect

On the day this news was published, FCNCA declined 0.93%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, May 15, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Commercial Real Estate business provided $24.5 million in construction financing for 121 Commerce Center, a large new industrial property in Grapevine, Texas.

The facility will cover more than 272,000 square feet and feature 36-foot ceilings, 54 truck doors and more than 350 parking spaces. The 16-acre site is strategically located near Highway 121, Interstate 635 and Dallas-Fort Worth airport.

Construction has begun on the facility, which is owned by an affiliate of GTIS Partners, and is expected to be completed before year end.

"This new logistics center features modern facilities and a strategic location that is ideal for supporting the distribution needs of the region," said Gaurav Sahay, Managing Director of Industrial and Logistics of GTIS Partners. "We appreciated the insights and agility of the First Citizens Commercial Real Estate team in arranging financing to help move this project forward."

"GTIS Partners is well-known throughout the industry for their skill in developing and operating top-tier commercial properties," said Chris Niederpruem, group head for Commercial Real Estate. "We have worked closely with GTIS before and look forward to supporting their financing needs in the future."

"It was a pleasure to work with the GTIS organization to craft this financing for an outstanding new project in the busy Dallas-Fort Worth region," said Juan Vives, a managing director with First Citizens Commercial Real Estate who originated the transaction.

First Citizens Commercial Real Estate originates and underwrites senior secured real estate financing for single properties, property portfolios and loan portfolios.

About First Citizens Bank

First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

About GTIS Partners

GTIS Partners is a global real estate investment firm in the Americas, headquartered in New York with offices in São Paulo, San Francisco, Los Angeles, Atlanta, Charlotte, Phoenix, Dallas, Houston and Munich. The firm was founded in 2005 and is managed by President and Founder Tom Shapiro and seven other partners. The firm manages $4.5 billion in gross assets and is active across a wide range of real estate sectors including single family and multifamily housing, office, industrial/logistics and hospitality as well as opportunity zone investments. The firm invests at various points in the capital structure including credit, common equity and structured equity. In the US, GTIS has invested in over 215 assets across 45 unique markets including growth areas such as Miami, Phoenix, Dallas, Houston, Denver, Atlanta, Tampa and Charlotte. In Brazil, GTIS is among the largest real estate private equity firms with holdings including office, residential, logistics, and hospitality investments. Marquee assets developed by GTIS Partners in São Paulo include the Infinity office building and Palácio Tangará, a five-star resort style hotel. For more information, please visit www.gtispartners.com.

MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com

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SOURCE First Citizens Bank

FAQ

What is the amount of financing provided by First Citizens for the Texas industrial project?

First Citizens provided $24.5 million in construction financing for the 121 Commerce Center project.

When is the 121 Commerce Center expected to be completed?

The 121 Commerce Center is expected to be completed before the end of the year.

What are the features of the 121 Commerce Center?

The 121 Commerce Center will feature 36-foot ceilings, 54 truck doors, and more than 350 parking spaces.

Who owns the 121 Commerce Center project?

The project is owned by an affiliate of GTIS Partners.

Where is the 121 Commerce Center located?

The 121 Commerce Center is located in Grapevine, Texas, near Highway 121, Interstate 635, and Dallas-Fort Worth airport.