Murphy has spent the past four years as managing director of industrial real estate for Pittsburgh-based Oxford Development Co. During that stint, he had leased, sold or acquired more than 15 million sf in transactions valued upward of $600 million.
The Houston-based REIT's industrial portfolio exceeds 10 million sf of wholly or jointly owned properties. But the plan is to beef up the industrial holdings "prudently and strategically on a national basis," Murphy tells GlobeSt.com. The existing portfolio takes in Dallas-Ft. Worth, Austin, San Antonio, Memphis, Las Vegas, Southern California, Phoenix and the REIT's homeport.
Murphy will be overseeing leasing and management of more than 55 industrial properties plus handling all industrial acquisitions and dispositions. His plan is to "in fill" Weingarten's current markets, shooting for operating efficiency between existing holdings and new acquisitions in its industrial markets as well as retail and office.
Murphy hasn't set a buy quota, but rather will analyze opportunities and acquire in markets where it's prudent. He feels Weingarten's foresight in buying is one of the factors that drive its A/a3 credit rating from Standard & Poor and Moody's.
Murphy will look for properties carrying price tags below replacement cost and under market in rents. He says it's been his experience that good class-B buildings can do well in any economy, unlike many class-A buildings that suffer during the bad times. His goal is to position Weingarten's industrial division portfolio to succeed in all financial times.
Other buying strategies include purchasing bulk distribution properties with 30 foot or less clear heights. Murphy says this is not a hard and fast rule, but tenants generally don't use high cubic footage. He will also look for properties with less than a 50% office finish, setting the stage to capture a niche market for businesses in the consolidation mode.
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