(Read more on the industrial market.)
THE WOODLANDS, TX-Caribe Properties, armed with options for more land, has sold its first three warehouses in an unnamed industrial development beside Woodlands Trade Center. To date, the local developer has stacked 75,000 sf in small warehouses on the land and plans to add a 10,000-sf build to suit and some extra spec space shortly after the New Year begins.
Caribe sold the 22,500-sf trio at 8812, 8820 and 8823 Fawn Trail to a Canadian investor. Comparable light-industrial product in the North Houston neighborhood is fetching $55 per sf to $65 per sf. The fully leased buildings were built in 2005 as spec space for a phased-in project that began with a 10-acre tract and options in a land bank. Caribe's strategy is build, fill and sell.
Meanwhile, Herb Jackson and Josh Feinberg with J. Beard Real Estate Co. have put three more tenants into Caribe's development. Florida Water Products took 7,200 sf in a 13,205-sf building at 8750 Fawn Trail and a just-completed 15,000-sf warehouse at 8774 Fawn Trail. KLT Carbide took 1,500 sf in the 8750 Fawn Trail building, leaving 4,505 sf to fill before it too goes up for sale. Already under contract is a 9,900-sf warehouse at 8809 Fawn Trail, which has been fully leased to Events Plus. The lease quotes for the mini-warehouses, some sporting 22-foot clear heights, are $6.25 per sf to $10 per sf, net.
Jackson, also the point man for the sales, tells GlobeSt.com that Caribe has contracted to buy another five acres and has a 1.5-acre site in hand for the build-to-suit project. "The market is just right for this type of product," he says. "We hit it just right."
Jeff Beard, the president of the Woodlands-based brokerage firm, says his team has "managed to lease them all and sell them all" in the past six months. And, he points out that all tenants are tied to long-term leases. "The timing was good, the market was good and the guys have done a good job," he says.
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