The 12.3-acre development at 1606 Greens Rd. is assessed at $6.06 million. "Generally speaking, assets are not assessed at full market value. The actual sale was somewhat north of there," says Ralph Tullier, vice president with Trammell Crow Co. capital markets group in Houston.
Gateway at Central Green, which was listed on the market for a few months, attracted more than 10 offers. "Dividend offered the highest price and they were the best buyer," explains Tullier, who with TCC's Rusty Tamlyn represented Cigna. The buyer has other holdings in the area "so they know the market," Tullier stresses. The Denver-based Dividend Capital had in-house broker Mark Bowen negotiate its terms.
Positioned near Bush Intercontinental Airport, the 75%-leased building is occupied by a mix of tenants that need light to medium manufacturing space, like a cable company and an HVAC supplier, which occupies 65,000 sf. According to second-quarter statistics, warehouse rents in the submarket bring $3.43 per sf to $3.66 per sf.
Tullier tells GlobeSt.com that TCC partnered with Cigna to develop the structure in 2001. He says Dividend Capital, at this time, is interested in the investment more so than taking on the development for a value-add renovation or launching a marketing blitz to fill the empty space. "This is an investment group," he stresses, "and purchasing this property is part of their investment strategy."
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