"By splitting the properties rather than selling them as a portfolio, we were able to increase their value by over 30%," says Glynn Mireles, vice president of CB Richard Ellis Inc.'s local office. He and CBRE vice president Jim Stark represented Praedium in sale of properties listed for $13 million.
"These were underperforming assets with an NOI that did not support the kind of pricing Praedium wanted," Mireles tells GlobeSt.com. "We had to break them up to maximize Praedium's return."
The buildings and land went to a variety of owner/users, private investors and a developer, Stark says. Praedium sold a 40,000-sf manufacturing facility at 15344 Vantage Parkway to Intercon Industries Inc., which is relocating from 1400 N. Sam Houston Parkway to occupy 26,289 sf in the 21-year-old building. Central Consolidated and Church Cassettes Inc. also are tenants in the building. The building has an assessed value of $865,000, according to the Harris County Appraisal District.
Chicago-based First Industrial Realty Trust Inc. acquired three industrial buildings, totaling 164,190 sf at 1541, 15402 and 15430 Vantage Parkway, and re-sold them to Ryder Stilwell Properties Inc., a Los Angeles-based investment firm. Ryder Stilwell then bought three more, with 113,835 sf at 15401, 15411 and 15421 Vantage Parkway, in a direct deal with Praedium.
"Ryder Stillwell is no stranger to the Houston market," Mireles says. "They plan to lease up the buildings and hold them. The buildings are quality construction and in a good location with great curb appeal." Locally based Caldwell Watson will lease the buildings and locally based Tarantino Properties will manage them.
Praedium also sold three properties, totaling 53,114 sf, in the North Belt Technology Center to Tarantino Properties: a 21,532-sf building at 15403 E. Vantage Parkway; 10,050-sf structure at 15423 E. Vantage Parkway; and 21,532-sf building at 15413 E. Vantage Parkway. A pending lease with a state agency will take the 21-year-old trio to 100% occupancy, Mireles says.
Local developer Northwinds Industrial acquired 25 acres from Praedium with plans to develop freestanding industrial buildings. The land borders Beltway 8 and Vantage Parkway East. Land along the beltway costs $4 per sf to $5 per sf, according to Mireles.
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