Seller Rolf Piller handed off the deed to Danielle Salerno, whose new acquisition is leased until 2008 to the division of Tyco Fire & Security Inc. of Boca Raton, FL. Situated on 3.2 acres at 7604 Kenwood Dr., the three-story building was developed in 1981 by Dallas-based Trammell Crow Co.
"The lease with SimplexGrinnell was up in a few years and the owner didn't want to face a lower valuation of the property that could have resulted," Jerry Goldstein, senior investment associate with Marcus & Millichap's Houston office, tells GlobeSt.com. "They'd done a 10-year lease, which is going to be up in 2008."
Goldstein, along with Tammy Saia and Michael Christie, Marcus & Millichap brokers in Chicago, represented the seller. Dean Prevolos from CMI of Naples Inc. in Florida bargained on the buyer's behalf.
Saia says the Chicago office had a longstanding relationship with the Swiss seller. "Then we brought in our local group from Houston. They knew the market and could be on hand to show the building," she adds.
Goldstein says the Kenwood Drive building was the seller's only asset in Greater Houston, but it was a good deal for the buyer. "I think the overall attraction of the sale is the price per sf," Goldstein says. "It's valued around $40 per sf with all those improvements and that's an excellent price in an industrial market."
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