$32M Deal Jump-Starts Texas Buying Plan

HOUSTON-A Southern California company is planning to use a 378,127-sf, class B office portfolio as a steppingstone for a long-term goal to generate $75 million to $100 million of deals per quarter in the city and other Texas markets. The buyer has spent $31.6 million for its inroad, is holding another contract and scouting for more.

Daniel Vittone of Voit Commercial Brokerage in Irvine, CA says Carmel Village Retirement Residences’ first investment is an 85%-occupied, four-building portfolio at 2600-656 S. Loop West. “They’re getting familiar with the property right now. Then, they can see how they can increase value through repositioning or capital investments in the buildings,” Vittone says.

Vittone tells GlobeSt.com that the buyer expects to close on its second office building in Houston in 60 to 75 days. “They’re setting up some business relationships and once those have solidified, can meet their financial goals,” he says about long-range plans involving joint venture partners. In the early going, he says Carmel Village will be looking for multi-tenant industrial product and class B and C office asset in the $15-million to $50-million range. “They’re seeking secondary and tertiary markets and projects with better returns and more cash flow–and 8% cap rates or better,” he says.