The warehouse, located at 9990 East Freeway, is Kingswood LLC's third acquisition in 60 days in Houston, says Jeff Barbles, an investment broker with Marcus & Millichap Real Estate Investment Brokerage Co. "The buyer is looking for upside investments," he says. "He's still got a lot more money to spend."
Barbles tells GlobeSt.com that the building owner, LK Investments of City of Industry, CA, was welcomed the unsolicited offer. The sale of the 28-year-old building allows LK Investments to exit the Houston market.
Situated on nine acres on the east side of Houston, the warehouse is rail-served and has 28-foot clear heights and sprinklers. It is 25% occupied by Leeds, AL-based Rock Wool Manufacturing Co., an insulation manufacturer with a long-term lease for its space.
Barbles says the new owner plans to implement an aggressive leasing strategy, including hiring Guardian Leasing of Houston. The facility leases for $3.60 per sf. In addition, he says Kingswood will spend about $500,000 on exterior upgrades and repaving the parking lot. "The inside is in good shape, but the exterior needs to be updated," says Barbles, who brokered the sale along with Marcus & Millichap's Rob Chandler and Paul Segreto.
According to the Harris County Appraisal District, the building is assessed at $3.4 million. Barbles says similar warehouse buildings are selling for about $25 per sf. Kingswood LLC, which paid cash for the facility, closed the deal in 30 days.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
