(To read more on the industrial market, click here.)
FORT WORTH-In a deal area brokers estimate at $9.2 million, Los Angeles-based Xebec Realty Partners has entered the Texas commercial real estate market with the acquisition of the seven-year-old, 208,611-sf Northpoint Trade Center I and II and 9.5 acres of adjacent land at Blue Mound Road Interstate 820 here. Xebec purchased the industrial portfolio from locally based McCarty Properties.
Xebec and McCarty principals declined to disclose the contract price, but area brokers familiar with the North Fort Worth industrial submarket tell GlobeSt.com the deal went down for about $9.24 million. The brokers based their estimate for the two distribution centers on a $42-per-sf going sale price for comparable area warehouse assets and about $50,000 per acre, or $1.15 per sf, for the undeveloped dirt.
The deal was done at this time because McCarty officials felt the market was ripe for a strategic disposition. "With market conditions as they are and cap rates at an historical low, we determined that timing was optimum to sell some class A product," says Dan McCarty, a third-generation Fort Worth native and a 28-year veteran in commercial real estate circles who heads his company. He adds, "The Fort Worth industrial market continues to improve as national name developers enter and vacancies continue to decline from what were relatively good numbers already."
McCarty says his firm already is scouting for additional industrial development opportunities because "the Texas market, Fort Worth and Dallas in particular, will continue to outperform the rest of the nation."
Xebec principal Ronny Guerrero agrees. "We see the acquisition of Northpoint Trade Center as a strategic move to the Texas market," he says. "We intend to unlock the value" of the adjacent 9.5 acres by developing an additional 200,000 sf of warehouse distribution space, he adds. When complete, Northpoint Trade Center will total over 410,000 sf of class A industrial space.
Larry Leon, a CB Richard Ellis vice president who negotiated for McCarty, tells GlobeSt.com that besides cap rates being at "an all-time low," another factor in the deal being done at this time was "an increased demand for industrial properties which maximizes the value for the owner." Leon says properties in the North Fort Worth industrial submarket continue to have the lowest vacancy rates in the Dallas-Fort Worth Metroplex at 3.7%. "This sale clearly shows the strength of the Fort Worth's industrial market," he points out.
Northpoint Trade Center is adjacent to the 633-acre Railhead Property, a master-planned industrial park that has over 3.5 million sf of existing industrial space and when fully developed will contain 11 million sf. Xebec's Neil Mishurda worked with Guerrero in representing their company in the acquisition.
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