MESQUITE, TX-Exeter Property Group has purchased Mesquite Business Center, a three-building industrial property, from BBVA Compass Bank for an undisclosed amount.
The deal represents one of the largest foreclosed industrial property sales in the Metroplex. The note on the property, which is generally recognized as one of the state-of-the-art industrial properties in its Mesquite/Garland submarket, is roughly $25 million.
The acquisition of the 555,200-square-foot distribution center marks Exeter’s first buy in the Dallas/Fort Worth market, according to Keith Fisher of Stream Realty Partners. He represented BBVA Compass Bank in the transaction, along with Patrick Blasdell, Bob Hagewood and Jeff Jackson.
Fisher tells GlobeSt. that the Plymouth Meeting, PA-based Exeter currently owns industrial assets in Austin, Houston and San Antonio and has been trying to buy in Dallas/Fort Worth for a while. “By their own words, they’ve always come in a close second,” he explains, adding that the Metroplex is a key expansion market for the company. “Leasing fundamentals are relatively strong here, and there’s not as much of a wait for turnaround on a value-added asset.”
Located at the corner of Big Town Blvd. and U.S Highway 80, Mesquite Business Center was developed in 2007 by a joint venture partnership comprised of Transwestern and Buchanan Street Partners. BBVA Compass took back the property in December 2009, according to Fisher.
“This is an institutional quality asset that wasn’t leased up because the previous owner was not able to do deals at the market based on their basis,” Fisher says, noting that Stream took over the leasing in May 2009. “The leasing activity that has been generated since then created a lot of investor interest.” At the time of sale, it was 19% occupied.
Fisher says Mesquite Business Center was on the market for six week and received 26 offers. All but two of the buyers presented all-cash offers.
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