The New York City-based seller has released a 100%-leased cluster of buildings at 901-09 Avenue T in Grand Prairie and 2224 E. Randol Mill Rd. in Arlington, according to Lizzy Blake, vice president of Grubb & Ellis Co. She tells GlobeSt.com that the three-week marketing produced 10 offers with Lincoln Advisory Group scoring the win because its affiliate, Dallas-based Lincoln Property Co., had had hands-on experience in leasing and managing the portfolio a few years ago.
"Understanding of the product was important," Blake stresses. "Our goal was to eliminate any re-trades down the road." Lincoln Advisory Group bought Northcourt Center and the neighboring Randol Mill Road warehouse on behalf of a pension fund client, Columbia Industrial Properties LLC.
[IMGCAP(2)]Blake says the 10-tenant portfolio, being leased and managed by Dallas-based Stream Realty Partners LP, has a 3% rollover coming in November and then there are no leases coming due until late 2009 when 10% rolls. The tenant roster crisscrosses a gamut of industries, including automotive accessories, aircraft refurbishment and telecommunications and cable supplies.
According to Tarrant County's appraisal district, Northcourt Center was developed in 1985 on a 10.9-acre tract, with its most recent assessment being $5.35 million. The Randol Mill warehouse was built in 1968 on 4.7 acres, with its 2008 assessment set at $2.28 million.
MetLife bought the buildings in December 1991. "MetLife had owned these for a very long time. Now is as good as time as any to go ahead and sell them," Blake explains, adding they traded in tip-top shape despite their age.
Blake says the majority of offers came from all-cash buyers, which in today's world is practically a necessity for expediting deals plus a pricing that met the buying group's sweet spot. She says the transaction was fast-tracked so that it spun from marketing to closing within two months.
"We ran due diligence simultaneous to contract negotiations, which allowed us to get it done in a timely manner," Blake says. "Interestingly enough, there are a lot of all-cash buyers and this project kind of hit the sweet spot. We were fortunate that we had something that was in demand and there was not a lot of supply."
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