(Read more on the industrial market.)
FORT WORTH-Halliburton Corp.'s former 340,869-sf office and warehouse footprint in Carter Business Park has been sold after roughly two years on the market to a long-time tenant who occupies 69% of the space. The 10-building asset has changed hands for slightly less than $8 million or about $4 million less than the original ask.
Houston-based National Oilwell Varco Inc., a publicly traded oilfield services' component manufacturer, had six years left on an inherited 10-year lease when it jumped into acquisition talks for the 23.3-acre complex at 1010-1100 Everman Pkwy. in South Fort Worth. "They knew both the strengths and the shortcomings of the real estate," says John Brewer, senior vice president for Henry S. Miller Commercial in Dallas, who teamed with the firm's president of its investment division, Greg Trout, and Fort Worth-based NAI Huff Partners principal Walter Floyd to make the close.
Brewer says the brokerage team for Cherokee Fund of Raleigh, NC approached National Oilwell Varco after repeated evaluations pointed to it as the most likely buyer although it hadn't made an offer. There were several offers during the long marketing run, but "at the end of the day we thought it made the most sense for National Oilwell Varco to buy it," Brewer tells GlobeSt.com. "They agreed with us." He says negotiations produced a sale at a slight discount to the $8-million ask, with the contract going down on the desk within one month and a closing three months after due diligence hurdles were cleared.
"They're expanding and obviously the energy sector is doing quite well," Floyd says. "They needed that extra space." There is 107,242 sf of empty office space for National Oilwell Varco's expansion plan.
Brewer says Cherokee sold the complex in as-is condition and held onto mineral rights for its Barnett Shale promise, which is producing oil and gas leases of exorbitant sizes in most of Tarrant County. The seller specializes in acquisition and remediation or disposition of properties with environmental contamination. According to both brokers, Cherokee had done some work on the site during its hold, but there is more remediation to be done.
Floyd, who held the original listing, says the site has been on the market for sale or lease since Cherokee bought it about five years ago from Halliburton. In March 2007, a local firm acquired one of the complex's buildings, a 117,000-sf office at 8945 Interstate 35W.
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