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Kennedy Associates Hawks 22-Building Portfolio

DALLAS-The 878,129-sf portfolio has one office building and 21 institutional-class industrial buildings, a 61%-leased mix with more than 100 tenants at below-market rents

By Connie Gore | Updated on May 15, 2008

[IMGCAP(1)]DALLAS-Kennedy Associates Real Estate Counsel LP is ready to harvest its 15-year investment in an 878,129-sf portfolio of 21 institutional-class industrial buildings and one office structure. The free-and-clear listing has hit the streets without an ask, but comparable industrial space would cost about $60 per sf to build.

The Seattle-based seller has June 3 penciled as the call for offers for the 61%-leased portfolio, situated in the City of Richardson and Northgate Business Park in northeast Dallas. Jack Fraker, vice chairman for CB Richard Ellis in Dallas, says the class A package, with break-up flexibility, represents “the largest opportunity to acquire space in these submarkets.” The largest concentration is 529,764 sf in 15 buildings in Northgate.

“The multi-tenant portfolio with 100 plus tenants provides investors with the greatest opportunity to roll rents to market,” says Fraker, who’s partnering with CBRE first vice president Josh McArtor and associate Conor Feeney on the sales campaign. Fraker tells GlobeSt.com that the buyer would be in a position to achieve stabilized cap rates in the 8.25% range due to current in-place rents at below-market rates.

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