Sep 17 2014
KONE, a global leader in the elevator and escalator industry, will build and occupy a light-manufacturing facility in AllenPlace and will add 80 new positions to the facility, the company and Allen Economic Development Corporation announced today.
The $26 million first phase of the AllenPlace office development will break ground this year with KONE, a global leader in the elevator and escalator industry, as the anchor tenant. This first phase also will add over 77,000 square feet of spec office space for prospective tenants in the market. (Photo: Business Wire)
KONE will expand its current competence by adding a light manufacturing facility to its operations in North America. In May, KONE announced it would be the lead tenant for the $26 million first phase of AllenPlace, and since, has committed to another 121,852 square feet for a light-manufacturing facility in the office park.
KONE now has plans to occupy nearly a quarter of the master-planned, 22.5-acre, 700,000 square-foot, five-building Class A office park being developed by Houston-based Sentinel Capital, LLC, in partnership with Centra Partners, LLC and Triad Real Estate. Including light manufacturing and test facilities and office space, KONE will lease more than 169,000 square feet at AllenPlace, east of North Central Expressway between West Bethany and West McDermott Drives. The Allen Economic Development Corporation has worked in partnership with Sentinel on the project, assisting with both the real estate transaction and KONE’s expansion.
KONE expects Sentinel Capital to break ground in the next few months and KONE will have most of the positions in place by the end of next year, according to Ron Bagwill, vice president of Supply Operations for KONE Americas. Bagwill said some employees will relocate from a facility that has been operating in Torreon, Mexico, while other positions will be new. He said growth and proximity to U.S. and Canadian suppliers and customers were the key factors contributing to the decision to centralize sourcing, engineering and testing in Allen. The company said it will maintain its operations in Torreon, Mexico, with particular focus on manufacturing the core components of its elevator products, the elevator cars and doors.
“We will be customizing the elevator controls closer to where they are installed in the U.S. and Canada,” he said. “Our centralized location in Allen will simplify logistics, enhance quality and speed delivery.”
“KONE’s commitment to Allen and AllenPlace firmly anchors our vision for this office park, and they will serve as an important physical and symbolic landmark for what Allen means to corporate business,” said Dan Bowman, Allen Economic Development Corporation Executive Director and CEO.
While construction is underway, KONE continues to occupy office space in Allen Central Park and a testing facility in nearby McKinney. KONE is expected to take occupancy in the first half of 2015, according to Greg Nelson of Sentinel Capital. The AllenPlace complex is being designed by the architecture firm Goulas + Associates, Inc.
Ben Appleby represented Sentinel Capital on the KONE transaction and now handles all leasing for AllenPlace. Jeff Patman, Senior Vice President with Site Selection Group, handled all economic incentive and lease negotiations for KONE.
“This public-private collaboration should speak volumes about our intent and commitment to be a corporate home for growing and developing businesses,” said Allen Mayor Stephen Terrell.