(Read more on the industrial market.)
HOUSTON-Cabot Industrial Value Fund II has added the 335,083-sf, multi-tenant Claymoore Business Park to its national industrial portfolio. The Boston fund acquired the fully leased, four-building asset through an off-market transaction, and assumed the loan.
Larry Marks, SVP with Betz Commercial Brokerage Inc. of Houston, says local seller Richland Investments Inc. owned the asset for more than four years, and sold it because the right buyer and offer came along. Similar assets can trade for between $65 per sf and $75 per sf.
“This ended up being attractive for Cabot because it's a large distribution center in west Houston, off Beltway 8, which is one of the hotter industrial markets,” Marks says. “Cabot is a huge nationwide fund actively seeking large properties like this. Because we had credit tenants and rents were below market here, it appealed to them.”
Because of the asset's appeal and because of a low interest rate, Cabot was willing to assume an already existing, interest-only loan which has about 1.5 years remaining.
Marks tells GlobeSt.com that Cabot plans some renovation to the asset to boost rents. He says the building has a steady rollover during the next six years, with the bulk slated for a 2011 roll. “Cabot's typical investment plan is to hold from three-to-five years, then consider selling it,” Marks adds.
Situated on 21.88 acres, the buildings are at 10775-10875 Kempwood Rd. and 2700 Brittmore Rd. Major tenants include Owens & Minor Inc., Siemens Corp., Digi-Color Copy & Graphics, Hoboken Wood Flooring LLC, Drilltec Technologies LP and Cricket Communications Inc.
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