VOLUME VII H 2007

A DEVELOPMENT OF HILLWOOD

How, When and Yen Alliance Global Logistics Hub: The Core for Asian Imports

PLUS Alliance Town Center Monterra Village Excitement is Building

CONTENTS

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VOLUME VII H 2007

10

Dear Friends,

6 For Information On:

14

Features

8 Excitement is Building 10 How, When and Yen 14 Alliance Town Center 16 Monterra Village

Departments 1 Welcome Letter 2 In The ZONE! 4 Shifting into High Gear 6 Air Quality 18 Expectations are Sky High 20 Featured Building

Welcome New Corporate Residents INDUSTRIAL Bell Army Program Center Con-Way Freight HDL International KFS, Inc. LEGO/Exel Metro Active Warehouse Mission Foods Weir Bros. Inc. RETAIL 7-Eleven Allstate Insurance, Ken Lo Animal Health Center AquaKids Art Nails and Spa II Bank of Texas Best Buy Dr. Alton Bishop Dr. Anjonette Colvin Cingular Wireless Compass Bank

Dana’s Studio of Dance Envision Imaging Family Healthcare Associates Farmers Insurance, Rudy Martinez Fitness 2000 Dr. Robert Harla HCA Health Care Heritage Cleaners Heritage Pharmacy Heritage Studios Photography Dr. Frank Hoang Hobby Lobby Dr. Aaron Horton Dr. Debra Krieg Paradise Tan Pissa’s Pizzeria Dr. S Preece Premier Rehab RE/MAX Heritage Dr. Larry Spradley Subway Wells Fargo

Congratulations on Your Renewal or Expansion! Andersen Windows Digisource DynCorp International Foxconn IDC

LG Electronics Premium Waters Ryder Integrated Logistics Select Remedy Intelligent Staffing Textron, Inc.

Industrial, commercial and retail development at AllianceHTexas Contact: Bill Burton, Steve Aldrich or Tony Creme 817.224.6000 [email protected] Residential development Contact: Fred Balda 972.201.2800 Foreign-Trade Zone services/CES/air cargo and temporary industrial space Contact: Steve Boecking or Tom Harris 817.224.6000 [email protected] [email protected] Ground support services and hangar space at Fort Worth Alliance Airport Contact: Alliance Aviation Services 800.318.9268 [email protected] Property management services Contact: Frances Broussard 817.224.6000 [email protected] Employee recruitment services Contact: Alliance Opportunity Center 817.399.7570 Employee Retention Services Contact: Kay Lee 817.515.7484 AllianceHTexas customer relations Contact: Judy Franco 817.224.6089 [email protected]

Alliance HTexas magazine is published in the United States by: Hillwood Development Company, LLC 13600 Heritage Parkway, Suite 200 Fort Worth, TX 76177 817.224.6000 © Copyright 2007 Hillwood Development Company, LLC. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Hillwood, AllianceHTexas, Victory Park, Alliance, Heritage, Circle T Ranch, Lone Star Crossing, Alliance Town Center, Monterra Village and certain other marks are service marks of Hillwood Development Company, LLC, or its affiliated companies. Other proprietary designations appearing in this publication are the marks of third parties, as indicated.

“The Alliance Global Logistics Hub is a thriving mecca for distribution activity with 26 million square feet; 25,000 workers; and value-added, cost-savings programs already in place.”

If imitation is the sincerest form of flattery, then the Alliance Global Logistics Hub has been well complimented. Often imitated but never duplicated, the Alliance Global Logistics Hub is the proven,time-tested connection for import goods flowing to North Texas and the central part of the United States. The proof is evident in many forms, but the two most illuminating are the quality of the customers at the Alliance Global Logistics Hub and the legacy the development has generated across the country. Of the more than 150 companies doing business at the Alliance Global Logistics Hub, 66 are listed on either the Fortune 500, Global 500 or Forbes list of top private companies. The names on the buildings are a virtual who’s who of global industry leaders, including General Motors, Ford, Kraft, Philips Electronics, Ryder, UPS, FedEx, Exel Logistics, Motorola, JCPenney, Texas Instruments, Volkswagen, Nestle, LG Electronics and SC Johnson. For many years the Alliance Global Logistics Hub has been a fact-finding destination for economic development officials and political leaders from across the country and around the world who are looking to create a similar economic development engine in their communities. The development

is also the prototype for the Burlington Northern Santa Fe Logistics Park concept that has been built in Chicago and Northern California. What customers already know and visitors learn is that the Alliance Global Logistics Hub isn’t just pretty renderings on paper like some other developments, or, as we say in Texas,“all hat and no cattle.” The Alliance Global Logistics Hub is a thriving mecca for distribution activity with 26 million square feet; 25,000 workers; and value-added, costsavings programs already in place. What visitors also learn is that Hillwood is more partner than developer, constantly seeking innovative ways to make customers’ operations and the supply chain less costly and more efficient. New planning initiatives include container storage yards, through-thefence facilities at the BNSF intermodal yard, a collective effort to improve highway infrastructure, the runway extension at Fort Worth Alliance Airport, and the construction of 2 million square feet of speculative space for new customers and for accommodating future growth of existing customers. As the proud home of many global leading companies, the legacy of Alliance is well deserved, but the challenge for Hillwood is to make the best even better. n

Sincerely,

Michael K. Berry President, Hillwood Properties

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COMMERCE

“ The value of foreign product processed within FTZ #196 at Alliance jumped from $302 million in 2005 to $3.8 billion in 2006.”

In The ZONE!

— Steve Boecking, vice president of Hillwood Properties

Increased use of foreign-trade zone benefits economy at Alliance and in the region

Products exported, no U.S. duty paid

Products imported, held in zone duty free

CHINA SEA PORTS

> Defer/Reduce/Eliminate Duty > Reduce Inventory Tax > Lower Costs of Importing > Reduce Supply Chain Time

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ALLIANCE FOREIGNTRADE ZONE #196

Domestic shipment, deferred duty payments

One of the many UNIQUE ways the Alliance Global Logistics Hub forwards economic development in the region is through Foreign-Trade Zone (FTZ) #196, which has created 3,800 jobs as well as increased ability on the part of North Texas companies to do business at home instead of abroad. “The purpose of the Foreign-Trade Zone is to generate economic development, and job creation is a key element of that,” said Steve Boecking, vice president of Hillwood Properties, developer of AllianceTexas. “A cell phone manufacturer, for example, could easily manufacture cell phones offshore and import them duty free. But because of the Foreign-Trade Zone program, they can add value here in the United States.” And with the continually increasing number of imports into the area from Asian countries (see cover story, page 10), the FTZ is becoming a stronger economic tool for companies than ever before. The federal government granted permission in August 1993 to Alliance Corridor Inc. to designate 9,600 acres available for the Foreign-Trade Zone. For many years, companies at Alliance did not utilize the benefit. Since changes to the federal FTZ laws were implemented in 2000, four companies within the development have opted to take advantage of the status. Hillwood officials predict that number could double in 2007. As a result, the value of foreign product processed within FTZ #196 at Alliance jumped from $302 million in 2005 to $3.8 billion in 2006, one of the highest in the nation. Companies that currently utilize FTZ #196 at Alliance include automobile manufacturer Hyundai, Honeywell, cell phone manufacturer Motorola and Alliance Operating Services. Boecking said that the zone benefits companies by reducing the cost of importing products into the United States.

“It speeds up the supply chain and makes it more agile,” he said. “ForeignTrade Zones allow companies to delay, reduce or eliminate the payment of duties. Other ways it helps reduce costs are the reduction of merchandise processing fees, a clerical fee importers pay, as well as the elimination of inventory tax on imported products.” He said the zone also helps when companies engage in inverted duty — a process by which they import a dutiable item, such as a cell phone battery, into the FTZ and use it in the assembly of a nondutiable item, such as a fully functioning cell phone. This eliminates the duty the company would have paid on the battery outside of the FTZ. Alliance Operating Services helps companies utilize the zone as a public FTZ. This means that it supports the Alliance Global Logistics Hub, so corporate residents can use it as needed for distribution, assembly and problem shipments. “With the heightened security since 9/11, U.S. Customs and Border Protection is extremely strict on importing items into the country,” Boecking said. “If you don’t have a Foreign-Trade Zone and you have a problem with your shipment, you commonly have three options: you can ship it back to the country of origin, fix the problem and bring it back — which is extremely expensive and slow; you can destroy the shipment — also expensive; or you can admit that shipment into a Foreign-Trade Zone (for a fee) where the problem can be fixed, and you can continue on with your shipment.” This means that the FTZ is a problemsolver for many Metroplex companies. “It just makes the Alliance Global Logistics Hub a more convenient place to perform your importing operations,” he said. “The Foreign-Trade Zone enables importers to be both agile and cost effective.” n

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35W

COMMERCE 114

FORT WORTH ALLIANCE AIRPORT 114

121

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635

114

35W

DFW AIRPORT 161 114

IRVING

360

820

820

Meacham Blvd.

MEACHAM AIRPORT 820

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820 30

The colored sections in the map to the left depict the different phases of construction for the North 35E Tarrant Express. 635The first segment to be completed, shown in light blue, is Loop 820 from I-35W to the Northeast Interchange. This segment of the project 35E could be complete as soon as 2011. DALLAS 30

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ARLINGTON

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Shifting into High Gear 35W Coalition makes great strides in first year Just a year after its formation was officially announced in early 2006, the 35W Coalition made headway on both of its major goals — encouraging the Texas Department of Transportation (TxDOT) to move the start date for major improvements to I-35W and Loop 820 from 2015 to 2008 and working toward development guidelines for the I-35W corridor. “In just one year, that accomplishment is remarkable,” said Mac Churchill, the group’s chairman and owner of Mac Churchill Acura, a business affected by traffic congestion along I-35W. “We’ve made unbelievable progress.” Fort Worth Mayor Mike Moncrief congratulated the coalition at its winter 2006 meeting on its first year of advocacy

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and its role as “the nucleus of what’s taking place in the region.” “Since our region is a major player in national and international trade,” Moncrief noted, “transportation is the most pressing challenge, and the 35W Coalition and other organizations, businesses and individuals need to continue to push for increased investment in transportation improvements.” He underscored the importance of unity, through organizations like the coalition, in moving forward on transportation goals. The coalition is a public-private partnership founded to help improve transportation along the I-35W north corridor, the stretch of interstate between downtown Fort Worth and Texas Highway 114. According to TxDOT estimates, more than

200,000 drivers pass by the Loop 820/ I-35W interchange every day — this is more than three times the amount of traffic the roads were designed to support when they were built three decades ago. TxDOT received qualifications and conceptual proposals through March 2007 from private sector teams interested in competing for the North Tarrant Express project. The North Tarrant Express is a 36-mile project along the I-35W / Loop 820 / SH 121 / SH 183 corridor. The improvements, estimated at $2 billion, will reconstruct and add lanes to this corridor, including express toll-managed lanes. The public-private partnership calls for developing, financing, constructing, operating and maintaining the first segment at Loop 820 from I-35W

360

to the Northeast Interchange, which will anywhere else in the country. We’re not try820 include a new multilevel interchange at I- ing to make it homogenous. We just want 820 20 35W. This first 6.4 mile segment will in- some character of development without clude the addition of four toll-managed affecting the ability for private landowners express lanes plus one nontoll lane in each to develop their property.” direction. The private sector proposals will With Hillwood’s AllianceTexas ocinclude development and financing for the re- cupying a sizeable amount of land on the maining segments as well. The first segment of corridor (the development encompasses the project could be complete as soon as 2011. 17,000 acres), it has a substantial stake The coalition also made strides in its in both mobility issues and development first year to establish a set of guidelines for standards. business and landowners along the corri- “Every piece of property we own has dor that puts restrictions on what signage, restrictive covenants on it that reflect these setbacks, lighting, landscaping and other standards, and we have proven that the aspects will look like. market will reward quality development,” The Fort Worth City Council is expected Laughlin said. “It might cost more up front, to vote on the development standards in but if everyone adheres, the market will the summer. accept it. Our 25,000 jobs and $6 billion in Russell Laughlin, president of the investment here prove that.” coalition and a senior vice president at AllianceTexas also takes great interest Hillwood, said the two main goals of in the coalition’s initiatives because of the the group are to improve mobility and profound effect improvements will have on quality of life in the area while facilitating the development’s workers and thousands sustainable development in the corridor. more who live here — or will live here in “That is a broad way of talking about the coming years. economic development for Fort Worth, “Any benefit that goes to the people Haslet, Roanoke, Northlake and all the cit- who drive to and from Alliance to work ies that touch or are near I-35W along this every day can be extended right over into all corridor,” Laughlin said. “Business own- of the homes,” Laughlin said. “The direct ership in the area has long felt that there benefits for residents are less congestion, was an opportunity before development more predictable transportation, more concame along to define the stretch between sistent travel times and therefore a better downtown Fort Worth and 114, and long quality of life. Long-term benefits are better term through Denton. We’re addressing road safety and better air quality.” development standards so that the quality Laughlin also said the better transof development is noticeably different than portation system will provide for more

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35E

sustainable economic growth, which translates into more jobs and a bigger tax base. More tax revenue means that cities and counties will have more money to 20 invest in better infrastructure items, such as fire stations and sewage treatment facilities. The victory with TxDOT, though widely attributed to the coalition, was a collaborative effort of several organizations. “It really was a combination of the coalition, local governmental entities, the Tarrant Regional Transportation Coalition, the Texas Department of Transportation and the North Central Texas Council of Governments,” Laughlin noted. He said the coalition’s role in the matter was bringing much-needed private sector involvement into the mix. “What those groups had historically been lacking was having the private sector really stand up and support transportation initiatives in a broad, open manner,” he said. “The cry for the last 10 years from the department of transportation and from city and county officials is that the private sector never shows up to support; it only shows up to oppose. We need private business owners to get engaged and help us advance improvements being planned. That’s what the 35W Coalition has done. It has organized the thoughts and ideas of all of these organizations and has provided direct support in facilitating conversations between elected officials and the private sector.” n A l l i a n c e HTe x a s

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COMMERCE

Air Quality New technology reduces diesel emissions at AllianceHTexas

The technology, delivered to the cabins of trucks, provides electrical outlets, air conditioning, and an array of entertainment and communications options such as satellite television and Internet access, all while saving the environment from millions of pounds of diesel emissions.

Top left: Trucks hooked up to the IdleAire system, which allows drivers all the comforts of home with the engine turned off. Bottom left: IdleAire’s “advanced truck stop electrification” system is used from within the cab. A remote control quickly helps the driver set the temperature, access the Internet and watch television.

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A relatively new company, the 2000 start-up IdleAire Technologies Corporation, has developed innovative technology that saves millions of pounds of diesel emissions from being released into the environment by long-haul trucks idling on overnight breaks at truck stops. The company’s recent arrival at the Pilot Travel Center, located within the Alliance Global Logistics Hub, eliminated 1,464,000 pounds — 664 metric tons — within its first six months of operations. That’s 23.4 pounds per hour, per truck, based on Environmental Protection Agency estimates. The site has the capability to accommodate 68 trucks. “IdleAire is tremendously proud to have developed and deployed a system that not only helps long-haul drivers rest better and breathe cleaner, healthier air, but also makes immediate, substantial and quantifiable improvements in a community’s overall air quality,” said company spokesperson John Doty. “IdleAire truly is a win for every affected constituency, from truck owners and truck drivers, to truck stops and the motoring public … and everyone who draws a breath in the community.” The company uses its patented “advanced truck stop electrification” system to help truckers heat and cool the cabins of their trucks without using expensive plugin equipment. “We go wherever long-haul trucks congregate and idle for long periods of time,” said Doty. “Traditional truck stop electrification is simply plug-ins. To be able to use them to heat or cool the cabin of the truck — which is the primary reason truckers idle — each truck had to have

several thousands of dollars worth of electrical heating and cooling equipment. Our technology is installed into the parking lot and provides filtered central heating and air conditioning.” The technology, delivered to the cabins of trucks via a long yellow hose installed in the parking space, also provides electrical outlets inside and outside the cab and delivers an array of entertainment and communications options, such as movieson-demand, satellite television, Internet access and a telephone jack with free local calling access. The service module, which is at the end of the hose, requires a $10 window adapter but no other retrofitting. Truckers slide a payment card into a slot on the module, which powers up the touchscreen interface. Since its first truck stop installation in 2002, IdleAire has signed up more than 1,900 fleets to use its services at $1.85 per hour. Individual drivers can also sign up and pay for additional $10, six-month memberships. The systems, which are installed at 108 sites, are tied into a national network monitored from IdleAire’s headquarters in Knoxville, Tennessee. The use of IdleAire Technologies within AllianceTexas truly offers a win-win situation for the community. The large corporate base of distribution, logistics and freightforwarding operations within AllianceTexas provides tremendous economic development for the area. IdleAire Technologies allows this growth to continue while sustaining and enhancing good air quality. As a result, the overall standard of living for those working and living within AllianceTexas is improved. n A l l i a n c e HTe x a s

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FEATURE STORY

Below: Tilt walls are raised at Alliance Gateway 72, which will offer 472,000 square feet of industrial space.

Excitement is Building Hillwood starts construction on new office and industrial space with anticipation of market demand

Hillwood unveils its largest rollout of speculative products in the company’s history. Two million square feet will be under construction within the next 12 months. The six speculative buildings will offer diverse product types, including office, industrial and flex space.

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With the market for industrial and office space at AllianceTexas booming, Hillwood officials anticipate an increase in demand and have begun development on six speculative buildings totaling nearly 2 million square feet to satisfy it. “There is real market demand and growth,” said Hillwood Senior Vice President Bill Burton. “We’ve seen it internally from our existing customer base as well as from new customers. We’ve effectively leased all of our existing space — 11 million square feet in our portfolio — so we need to create new space and availability. The continued increase in volumes at BNSF Railway’s Intermodal Facility has definitely heightened the need for warehouse space. Also, FedEx has increased its volumes, including flights to Asia through Anchorage, which also could spur demand.” Industrial Hillwood is starting construction on five buildings, including nearly 1.9 million square feet (SF) of new industrial product within the next 12 months. Four of the buildings, including Alliance Gateway 72 (472,000 SF), Alliance Gateway 18 (399,000 SF), Alliance Gateway 52 (268,750 SF) and Alliance Gateway 23 (142,500 SF), will be located in the eastern sector of the project near Texas Highway 170. The fifth

facility, Westport 20, will provide 562,500 square feet of industrial space located at the doorstep of BNSF Railway’s Alliance Intermodal Facility. All five of the new industrial buildings will have additional trailer parking with the ability to secure their truck courts. Four of the five buildings are located on hard corners to enhance visibility and access to the site. Speed-to-market is a competitive advantage for Hillwood. Ground was broken for Alliance Gateway 23 in January and for Alliance Gateway 72 in March. Completion dates are expected in June and September, respectively. An aggressive construction schedule will see the remaining buildings start throughout the year. Westport 20 and Alliance Gateway 18 and 72 will be cross-dock warehouse and distribution facilities. Alliance Gateway 52 will be a front-park, front-load warehouse distribution building, while Alliance Gateway 23 will be constructed as a front-park, rear-load flex facility. Gateway 23 also offers additional land that is available either for trailer parking for industrial residents or employee parking for high-finish office users.

Heritage Commons office complex, will offer 114,710 square feet of Class A office product when complete in June 2007. The facility has frontage on Interstate 35W and will also include many LEEDcertified building features. Heritage Commons I and III are currently home to DynCorp International, Bell Helicopter Textron and Hillwood. Together, the three buildings will feature outdoor pedestrian connectivity and courtyards. “These three buildings will work together,” Burton said. “There will be flexibility and growth opportunities from one building to the next. We have a growing office community with more than 2 million square feet existing within the development. The office market at AllianceTexas is maturing and we are taking the necessary steps to meet the growing demand.” Additional office residents within the development include AT&T, DaimlerChrysler Services, Fidelity Investments, Galderma and TD Ameritrade to name a few. For more information on Hillwood’s building program, please contact Bill Burton, Tony Creme or Steve Aldrich at 817.224.6000. n

Office Heritage Commons II, which is the third building of the 300,000-square-foot A l l i a n c e HTe x a s

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COVER STORY

< Canada

Mexico >

Fort Worth Alliance Airport

How, When and Yen

BNSF Railway’s Alliance Intermodal Facility

ALLIANCE GLOBAL LOGISTICS HUB: the core for Asian imports

“The Alliance Global Logistics Hub is a one-of-a-kind supply chain port not found in any other place in the world. When you add up the unparalleled multimodal program, economic benefits and logistics services we’ve added, we definitely differentiate ourselves from other industrial centers.” — Tom Harris, senior vice president of Hillwood Properties

Imports from Asian countries have seen a substantial increase in recent years. Much of this growth is coming to the United States on ships via the Port of Los Angeles/Long Beach, where containers are then transferred to intermodal trains for distribution throughout the country. Imported containerized trade grew 10.2 percent in 2005 with an additional 8.9 percent increase in 2006. Projections from the Journal of Commerce reflect an anticipated 6.6 percent increase in 2007. Primary growth for the import traffic will be seen on the U.S. West Coast. However, logistics companies seeking to integrate this enhanced growth into their business stream should not focus on the West Coast port of entry. Rather, the value proposition for logistics providers lies in the container’s final destination point. Companies should consider keeping their imports within a

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Foreign-Trade Zone (see story, page 2) and moving to an inland port that offers an intermodal yard, multimodal transportation options and supply chain services. “Distribution centers that are located closer to the intermodal center have a competitive advantage because of significantly lower drayage (trucking) costs and less dwell time between the rail center and distribution center,” said Steve Boecking, vice president at Hillwood. “That’s what the Alliance Global Logistics Hub fulfills.” One of the key points of success for the Alliance Global Logistics Hub is the connection between BNSF Railway’s Alliance Intermodal Facility and distribution centers within the development. This arrangement can reap huge economic benefits for companies importing products from China, as well as other countries. In 2007, officials estimate that the intermodal yard

will complete 670,000 lifts (lifting a container of product either off a train and onto a truck chassis or vice versa). By 2010, that number is expected to nearly double. What this means for Alliance is that the development is a lower-cost choice than other inland port options because of the intermodal yard’s close proximity to a substantial amount of industrially zoned real estate. Curtis Spencer, president of IMS Worldwide, Foreign-Trade Zone and strategic development consultants, said costs at Alliance can be $100 to $200 cheaper for each container that travels from the intermodal rail hub to the distribution centers — one of the last legs of the supply chain journey — with through-the-fence logistics. This means that after containers come into the United States on ships from Asia and are loaded onto trains at the Port of

Opposite page: BNSF Railway’s Alliance Intermodal Facility lifts containers of product off trains and onto a truck chassis to be shipped to its destination. This page: (Top) BNSF Railway’s Alliance Intermodal Facility. (Below) Fort Worth Alliance Airport, the world’s first 100 percent industrial airport, provides full ground handling services for air cargo. (Top right) The Alliance Global Logistics Hub provides access to intermodal, rail, air and highway within a five-minute distance.

Los Angeles/Long Beach, they come to BNSF’s intermodal yard at Alliance and can be fed directly into distribution facilities located next to the yard. “Alliance will soon have an immediately adjacent, through-the-fence procedure while maintaining ultra-high security that meets or exceeds the Department of Homeland Security’s best-practice requirements, while at the same time, cutting the cost of drayage for similar locations in the Metroplex,” Spencer said. “If you’re importing around 5,000 containers per year and are comparing warehousing costs, the Alliance facility could save you between $500,000 and $1 million per year in just that component.” In response to the logistics industry’s need for “postponement logistics,” Alliance has planned transload facilities that will allow containers from Asia with inland destinations to arrive at Alliance and be cleared by

U.S. Customs and broken down into a facility directly adjacent to the intermodal yard. “So a company’s logistics activity can happen right here instead of processing on the West Coast,” commented Boecking. “The efficiency you get from that is a lower cost structure and an avoidance of the congestion at Los Angeles that can be very cumbersome. If it’s going to come as far as Dallas/Fort Worth, and the distribution point is reachable with a one-or one-and-a-half day truck trip, it makes sense to have it move inland and process the container at Alliance. This is especially true for overweight capacities since the development provides access to private roads between the intermodal yard and the transload facilities.” But the superior connectivity of the intermodal yard doesn’t end at being near distribution centers — there is direct access to Interstate Highway 35W (connecting to A l l i a n c e HTe x a s

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Mexico and Canada), Texas Highways 170 and 114, Fort Worth Alliance Airport and the Alliance Air Trade Center, as well as the FedEx Southwest Regional Sort Hub, now offering daily flights to Asia. Alliance also offers on-site U.S. Customs inspection, a Centralized Examination Station and Triple Freeport Inventory Tax Exemption as well as 9,600 acres available for the Foreign-Trade Zone — the only one in North Texas with combined air, rail and highway access. “The Alliance Global Logistics Hub is a one-of-a-kind supply chain port not found in any other place in the world,” said Tom Harris, senior vice president at Hillwood. “When you add up the unparalleled multimodal program, economic

benefits and logistics services we’ve added, we definitely differentiate ourselves from other industrial centers.” Alliance is also working on developing container yard services and facilities on the west side of the development, recently selling an 81-acre plot to Dallas company Weir Bros. Inc. The land will be used to build a container facility with a capacity for 3,000 containers. The facility will enhance efficiency at the intermodal yard by increasing the throughput of containers. Another improvement to the hub involves Fort Worth Alliance Airport’s impending extension of both of its runways to 11,000 feet, which Harris says gives the hub the ability to have wide-body aircraft land and take off (fully loaded and fully

fueled) at the airport and reach points in Asia and Europe on nonstop trips (trips to Asia can already be made with a stop in Anchorage). The 17-year-old airport handled 250,479 metric tons of cargo in 2006, a 14 percent increase over 2005. “FedEx at Alliance currently operates daily service from Alliance to and from Asia, which provides our customers with a faster option to move goods between Texas and China,” Harris said. “The ability to move large volumes of cargo by air, as well as rail and highway, is what makes Alliance a complete global logistics hub.” U.S. Transportation Secretary Mary Peters made a February visit to Fort Worth Alliance Airport to tour the FedEx regional hub. She told reporters that she is working

With trade from Asia at an all-time high and increasing, the Alliance Global Logistics Hub is positioned to keep North Texas a leader in global trade. The Foreign-Trade Zone, capacity for intermodal growth and low drayage costs combine with superior connectivity to attract business to the area.

Opposite page: The shipping yard is vast and boasts fast connectivity via train, truck, air and highway. This page: Trucks make their way in and out of the logistics hub, picking up containers of product that have arrived by train from the West Coast.

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on negotiating an open-skies agreement with China that could boost the number of passenger and cargo flights between the United States and China. She said she thinks, “such an agreement would benefit the Alliance area, specifically in the number of jobs increased cargo flights could create.” Harris pointed out that with all of these improvements and capabilities, the Alliance Global Logistics Hub is the most logical solution for importers who need to come inland to distribute their product. “Our country’s trade with Asia will only get bigger, and we have positioned ourselves as the logistics hub for China

and other parts of Asia that have a need to distribute goods and products within the U.S. Because of growth in the DFW region and the movement of the U.S. population southward, it makes sense for them to be here.” For an industry where pennies affect the bottom line, the Alliance Global Logistics Hub offers logistics companies the opportunity to achieve substantial savings. No other inland port offers the same level of service, economic benefits and multimodal transportation options. For more information, please contact Steve Boecking or Tom Harris at 817.224.6000. n A l l i a n c e HTe x a s

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FEATURE STORY

The total square footage of the retail portion of Alliance Town Center will be between 1.2 million and 1.5 million square feet. Additionally, Alliance Town Center will include a major hospital campus operated by HCA and the unique multifamily community of Monterra Village.

Alliance Town Center, a 300-acre, $800 million retail, office and residential development, is poised to transform the face of AllianceTexas. Bill Burton, senior vice president of Hillwood Properties, developer of AllianceTexas, says the influx of “best in class” retailers to sign up for the first phase of the project signifies that the development will be a success and regional in scope. “We tried to put together a project that is something customers will enjoy coming back to time and time again,” he said. “We want to be the dominant regional shopping center on I-35W.” So far, JCPenney, Best Buy, Belk Department Store, Sam Moon, Hobby Lobby, Cheddar’s Casual Cafe, Wells Fargo and

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Bank of Texas have signed on for the “power center” portion of the retail project. Negotiations are currently under way with a major book store, sporting goods retailer, a movie theater and additional stores and restaurants. These, Burton said, will mix with the boutique tenants to form a lifestyle center second to none in the area. “This project is a hybrid with big box retailers and specialty lifestyle retailers,” Burton said. “The key is to combine power center tenants and lifestyle center merchants together to provide an environment that customers will feel comfortable in.” To achieve this, Burton said that a lot of time has been spent designing the architecture and walking connectivity of the development.

“Our partner Trademark conducted several focus groups with the primary customer base. The groups’ feedback on desired features has been incorporated into Alliance Town Center with additional shading, public spaces, walking connectivity and architecture that is appealing.” Shoppers will enjoy an enhanced experience provided through master-planned store fronts, signage and landscaping. Nearby residents will find plentiful park features and open space with multiple trail heads leading to the regional hike and bike system. Tony Chron, executive vice president at Trademark Property Company, Hillwood’s development partner for the project, said the lineup of retailers is

Above: An artist’s rendering of the Alliance Town Center development. It will include a “power center” with large retailers along with many smaller boutique shopping options.

looking great and that without them, attracting many smaller boutique merchants would be more difficult. He said he is seeking more restaurants, a theater and some furniture retailers as well. “Then we’ll bring in specialty retailers to fill the rest of the shop space,” Chron said. “That and the anchors we already have will make this a very regional shopping place. The trade area here will extend several miles in either direction and will offer the people in the northwest edge of Tarrant County a place to shop unlike the other shopping opportunities they have at this point.” The total square footage of the retail portion of Alliance Town Center will be between 1.2 million and 1.5 million

square feet. Additionally, Alliance Town Center will include a major hospital campus operated by HCA and the unique multifamily community of Monterra Village (see story, page 16), also developed by Hillwood. The goal for operation is to have most of the power center portion leased and open by the spring of 2008. The lifestyle portion of the center is slated to open in the spring of 2009. For more information on leasing opportunities within Alliance Town Center, please contact United Commercial Realty at 214.526.6262, or visit www.AllianceTownCenter.com. n

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FEATURE STORY

Monterra Village Innovative new housing and retail includes mixed-use areas, big retailers

This page: (Top) An artist’s rendering of the unique residential component at Monterra Village, Hillwood‘s newest mixed-use development in the works. (Bottom) The site plan for Monterra Village.

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The mixed-use village concept is making a splash at AllianceTexas, with Monterra Village, a planned 1,000-apartment home development with office, retail and medical spaces within walking distance from the homes. “Monterra Village represents Hillwood’s expansion into multifamily and mixed-use developments,” said Joe Peterson, managing director of Insight Real Estate Strategies and consultant for the project. “It will really set a new standard. And I won’t be surprised at all if it receives national accolades and attention.” Peterson said the 130-acre site at the southeast corner of North Tarrant Parkway and I-35W represents the southernmost gateway to the 17,000-acre AllianceTexas development. There will be a large open green space buffering Monterra Village from the freeway, which will be part of the open prairie grassland incorporated into the project. Developers will also keep as many trees and natural waterways intact as possible, providing winding walking paths through the natural areas. “The site is so beautiful,” Peterson said. “It has water features, rolling hills and wonderful views of downtown Fort Worth. It has streams and natural ponds that have been on the site since God made it, and when you have features like that, you absolutely must preserve them. Hillwood does a great job of developing responsibly.” The project includes such interesting features as live-work designed homes for professionals who work and see clients from home. The homes have dedicated office space and signage as well as convenient parking areas for customers. “What we’ve found is such a huge percentage of people keep home offices, and we saw the opportunity to expand on that and develop spaces specifically designed for home offices,” Peterson said. He also said that Monterra Village as a whole is not a typical apartment-living development and is especially new and different to the north Fort Worth market. Every apartment home has a private first-floor entry and an attached single or double garage, making the design much

like town homes. There will be one-, twoand three-bedroom homes. All of the apartments will be leased, and the first 288-unit phase of construction started in March. The first homes will be ready for residents in the spring of 2008. The project will consist of four or five phases of development, beginning with the first residential piece and ending with the medical office spaces. “There’s not really another offering like this in northeast Tarrant County,” said Mike Berry, president of Hillwood Properties, developer of AllianceTexas. “The location is so fantastic in that it is convenient to Alliance, downtown Fort Worth and DFW Airport. It is part of Alliance Town Center, which is home to JCPenney, Best Buy,

Sam Moon and more. And the community is also located within the top-rated Keller school system.” Peterson said that Monterra Village is the first apartment community the Keller Independent School District has ever supported in a zoning case, and is the first multifamily zoning project that received unanimous support from the Fort Worth City Council. “Typical multifamily zoning is something everyone tries to avoid, but Fort Worth and Keller supported it,” he said. “They understood the mixed-use nature and supported the product.” The development has a Web site, www.monterrabyhillwood.com, with a VIP registration area that allows people to stay abreast of the development. VIP entrants will have priority location selection when leasing starts in the fall of 2007. n A l l i a n c e HTe x a s

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COMMUNITY

This year’s show will feature the U.S. Navy Blue Angels, who will demonstrate their fast-paced, high-performance aerobatics, and the U.S. Army Golden Knights parachute team.

Expectations are

Sky High

U.S. Navy Blue Angels Featured in 2007 Fort Worth Alliance Air Show This year’s only jet team performance in North Texas

Daring aerobatics, graceful maneuvers and bold stunts will fill the sky over North Texas October 20-21 at the Air Show. With a highly successful 2006 event and a stand-out lineup of performers, this year‘s event will be just as amazing.

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Opposite page: (Top) The U.S. Navy Blue Angels can be seen at the 2007 Fort Worth Alliance Air Show. (Below) The Air Show features tour guides educating guests about their aircraft. This page: (Above) Static airplanes on display; thousands of attendees enjoyed the 2006 Air Show. (Far right) The U.S. Army Golden Knights parachute team and the U.S. Navy Blue Angels.

W i th m o r e tha n 1 8 0 , 0 0 0 attendees and dozens of airplanes filling the sky at the successful 2006 Fort Worth Alliance Air Show, this year’s event promises to fly just as high. Scheduled for October 20 and 21, this year’s show will feature the U.S. Navy Blue Angels, who will demonstrate their graceful and daring aerobatics, and the U.S. Army Golden Knights parachute team, among many other aviation acts. The theme, like last year, will be “Spirit of Freedom.” Tim Ward, president of Alliance Air Productions, said that he expects an even better turnout this year as the Air Show welcomes the only jet team performance in North Texas. “The Fort Worth Alliance Air Show will be the one opportunity for North Texans to see the fast-paced, high-performance maneuvers of a United States jet team in 2007. Plus, the show continues with a long list of dynamic aviation acts, including the U.S. Army Golden Knights, Red Baron

Squadron, Breitling, the Mig-17 and many more.” The 2006 Air Show raised nearly $85,000 for local nonprofits that helped provide some of the 400 volunteers the event needs. Groups the show benefited include the Naval Air Station Joint Reserve Base’s Morale, Welfare and Recreation; the Fort Worth Boys Choir; the Civil Air Patrol; and local Girl and Boy Scout troops, among many others. In its 18th year, the event is made possible by generous corporate sponsors. Sponsorships range from $2,500 and up for branding, $3,500 and up for exhibit space and $15,000 and up for corporate hospitality villas at the event. The primary beneficiary for this year’s show is the United Service Organizations (USO) of Dallas/Fort Worth. With its mission to extend a touch of home to the military, the USO of DFW provides snacks, care packages and a caring hand to members of the armed forces and their dependents. Additionally, the organiza-

tion offers our men and women in uniform an opportunity to send a message home with its new program, United Through Reading. The program records soldiers reading a children’s book in a child-friendly environment. Then, the new book and DVD are mailed to his or her family along with a written message. “The program mails out some 200 books a week and enables families to have a personal video message from the soldiers just before they leave for duty,” said Marcy Sherman, sponsorship director for Alliance Air Productions. “It is a truly humbling experience to see our men and women recording a message that may be a legacy for their family members back home.” For more information on sponsoring or exhibiting at the Fort Worth Alliance Air Show, contact Sherman at 972.621.0400, ext. 108, or [email protected]. Details on schedules, directions and more for the Air Show can be found at www.AllianceAirShow.com. n A l l i a n c e HTe x a s

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Available Properties

Featured Building

AVIATION Alliance Air Trade Center 99,000 SF Fort Worth, Tarrant County

HERITAGE COMMONS II

Alliance FBO Hangar 30,400 SF Fort Worth, Tarrant County

Available Now Available First Quarter 2008

INDUSTRIAL Alliance Gateway 23 142,500 SF Available Summer 2007 Fort Worth, Tarrant County Alliance Gateway 72 Roanoke, Denton County

472,000 SF Available Fall 2007

Alliance Gateway 18 399,000 SF Under Development Fort Worth, Tarrant County Alliance Gateway 52 268,750 SF Under Development Fort Worth, Tarrant County

RETAIL Alliance Town Center – 300-acre community retail center with diverse lifestyle retailers. Anchored by JCPenney, Best Buy, Belk and Sam Moon. Interstate 35W and Heritage Trace Parkway. Developed by Hillwood and Trademark Property Company. Lone Star Crossing – 980 acres with destination retail, dining and entertainment, anchored by Cabela’s. Five minutes south of Texas Motor Speedway. Interstate 35W and Texas Highway 170. Developed by Hillwood. Circle T Ranch Retail Resort – 1.2 million SF retail resort with openair lifestyle plaza and pedestrian promenade. Texas Highway 114 and Westlake Parkway. Developed by Hillwood and General Growth Properties.

Westport 20 562,500 SF Under Development Fort Worth, Tarrant County

The Shops at Circle T Ranch – 1.1 million SF power center across the highway from the Circle T Ranch Retail Resort. Northeast corner of U.S. Highway 377 and Texas Highway 170. Developed by Hillwood and General Growth Properties.

OFFICE Heritage Commons II 114,710 RSF Available Summer 2007 Fort Worth, Tarrant County

Alliance Crossing – Retail and small office space serving Alliance corporate residents. Interstate 35W and Westport Parkway. Developed by Hillwood.

Westlake Corporate Center Class A office and corporate campus Westlake, Tarrant County Build-to-suit availability

HERITAGE COMMONS II Building Features • 114,710 SF available • 7.6-acre site • Single and multitenant floor layout availability • Energy-efficient and environmentally friendly building features • High-finish lobby includes wood and stone attributes • 4/1,000 SF parking ratio • Fiber optic/copper telecom available • Local redundant fiber ring, multiple providers • Heavily landscaped courtyard with grounds • Security system with keyless entry and after-hours card access

Location Advantages •F  reeway frontage to Interstate 35W • Texas Highways 114 and 170 within 5 minutes • 20 minutes to DFW Airport • Direct access to FedEx Southwest Regional Sort Hub with one of the latest drop-off times in North Texas Service Advantages • On-site property management 24/7/365 • Corporate aviation facilities • Multiple child care programs • Recruitment and retention services • Numerous staffing agencies

Choose Hillwood, A Perot Company

AllianceHTexas Top 10

1. Master planner and single developer of AllianceTexas

1. World-class, 17,000-acre master-planned, mixeduse development

6. O  n-site U.S. Customs and Border Protection and CES

2. The Alliance Global Logistics Hub anchored by BNSF Railway’s Alliance Intermodal Facility and Fort Worth Alliance Airport

7. FedEx Southwest Regional Sort Hub with daily service to Asia 8. Access to a strong labor pool – 3 million in DFW workforce

3. Bordered by two Class I rail lines and intersected by Interstate 35W



2. Financially strong with long-term commitment 3. Land and building development expertise 4. Hillwood Construction Services 5. Hillwood Property Services on-site 24/7/365

February 2007

6. Extensive land management/ landscape program 7. Top-ranked aviation services company 8. Foreign-Trade Zone analysis and services 9. Employee recruitment and retention services

April 2007

10. Promotes community lifestyle with special events and customer appreciation

4. Central location in the U.S. – 20 minutes from DFW Airport 5. Foreign-Trade Zone #196 and Triple Freeport Inventory Tax Exemption

(Source: U.S. Bureau of Labor Statistics)

9. Critical redundancy and reliability from dual power and telecom feeds 10. Superior quality of life with abundant, affordable housing

For more information, please contact Steve Aldrich, Bill Burton or Tony Creme at 817.224.6000.

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A l l i a n c e HTe x a s

Hillwood 13600 Heritage Parkway, Suite 200 Fort Worth, TX 76177

Return Service Requested

Hubba. Hubba. Hubba. Premiering as the world’s first 100% industrial airport, the 17,000-acre AllianceTexas development has grown into an international trade and logistics complex. Centrally located in the United States, AllianceTexas is anchored by the Alliance Global Logistics Hub offering multimodal transport options – airport, rail lines, intermodal yard and interstate highway – all within five minutes. With Triple Freeport, the ForeignTrade Zone, U.S. Customs, CES, 3PL services and more, the

benefits are unlimited. A hub to more than 150 companies — 66 from the Fortune 500, Global 500 and Forbes Top List of Private Firms — AllianceTexas attracts a talented workforce. Worldclass office, industrial, retail, residential, recreational and entertainment centers have made a $28.5 billion impact on the local economy — hubba, hubba, hubba. Transport your company to The Hub — AllianceTexas.

F o r m o r e i n f o r m a t i o n , p l e a s e c o n t a c t B i l l B u r t o n , To ny C r e m e o r S t e ve A l d r i c h . 13 6 0 0 H e ri t age Park way, Sui te 20 0 | For t Wor t h, T X 76177 | 817. 2 24.6 0 0 0 | Al l ianc eTexa s .c om