HOUSTON-Coffee manufacturer Cadeco Industries has spent $3.2 million on a 170,000-sf industrial building that it's been leasing since the late 1990s and took down the balance of an abutting 251,000-sf facility leased in fall 2003 for its expansion capabilities.
According to broker Doug Nicholson with Grubb & Ellis Co., Cadeco bought 5518 Clinton Dr. when it came up for sale because it abuts its main coffee plant at 350-400 Portwall St., a 14.3-acre leased site now under its full control.
Nicholson, who represents Cadeco, tells GlobeSt.com that the buyer met the full ask with the highest of two bids that came in during a four-month marketing period. Possible renovations are expected, but no final decision has been made as yet.
Set on eight acres, the Clinton Drive building is 35 years old, rail served and used as a processing site for imported beans, which are then distributed to major coffee companies like Maxwell House. According to previous GlobeSt.com reports, the locally based Midway Cos. picked up the building in a 27.5-acre acquisition of the former Uncle Ben's rice processing facility, shortly after it shuttered in a 1999 consolidation move to Mississippi.
Cadeco's larger building is owned by Packwell Inc., which had Bill Rudolf with CB Richard Ellis Inc.'s local office negotiating its terms for the 98,600-sf expansion. In November 2003, Cadeco leased 152,400 sf of the five-year-old warehouse. At that time, Nicholson told GlobeSt.com that an option for the balance was the decision-maker for a medium-term lease. The space's quoted rent was in the high 20 cents per sf range.
Cadeco, a provider of green and processed coffee, is part of a group of companies that has been in the industry for more than three generations. Started in Spain in 1920, the company expanded into Mexico in 1930 and into the US in the early 1980s.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
