Commercial Real Estate

Kroger Acquires 56-Acre Site in South Dallas for Future Distribution Center

Dallas-Based commercial real estate company JLL completed the acquisition on behalf of the grocer.

The Kroger Co. has acquired a 56-acre site in southern Dallas.

The site, located along Interstate 20 at the northwest corner of Telephone and Bonnie View roads, is expected to serve as the location for Kroger’s new 360,000-square-foot, state-of-the-art automated distribution center that will service direct-to-consumer home deliveries.

The development of the project is expected to take 24 months to complete, once construction begins.

In August, Dallas City Council members unanimously approved $5.7 million in property, business tax abatements, and bond funds for the new Kroger warehouse, which will fill online orders of fresh groceries with robotic and digital technology.

The Cincinnati-based grocer expects the new warehouse to employ about 400 people and suggests it will help solve food desert issues in South Dallas.

Kroger and U.K. online grocery retailer Ocado made its exclusive partnership public in 2018. Ocado came into the deal with experience building huge, automated warehouses staffed with robots. Its Andover warehouse processes 65,000 grocery orders per week.

Together they plan to build 20 facilities throughout the U.S., including the South Dallas facility.

Kroger operates 98 stores in North Texas.

Dallas-based commercial real estate company JLL represented Kroger in the land acquisition. CBRE represented the seller, a joint venture between Ridgeline and Archway.

“Kroger’s cutting-edge fulfillment center will be a welcome addition to the residents of Dallas and the surrounding area,” said JLL’s Elizabeth Jones. “Kroger and JLL both strive to expand partnerships and generate greater value for customers. We are proud to play a role in increasing the accessibility of all the quality food and products Kroger sells by helping to expand their footprint and direct-to-consumer expansion in North Texas.”

Jones worked on the deal with Terry Darrow, Forshey Hoobler, and Briand Leonard.

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