MCALLEN, TX- Hager Pacific Properties has acquired an industrial portfolio consisting of 16 buildings totaling more than 800,000 square feet in McAllen and El Paso, TX. Hager Pacific acquired the distressed assets from CIII Capital Partners for approximately $17 million in an all-cash transaction, partnering with Ben Medetsky and Jack Polatsek of Interra Capital Group in this acquisition.
Of the 16 properties in Hager Pacific's new portfolio, 11 are in McAllen, ranked seventh in CNN's 2012 list of fastest growing cities in the US. “In the last few years, during the recession, demand for small units in McAllen stayed strong,” says Jason Schirn, chief investment officer of Hager Pacific in a press release. “Our price is less than half of replacement cost, so we feel very good about this acquisition.”
Meanwhile, El Paso is just minutes from the Rio Grande, and is a strategic location where warehouses are primarily used to either store raw materials bound for the Juárez maquiladoras or store outbound finished products.
Purchases in both El Paso and McAllen fit into Hager Pacific's ongoing belief in the United States' increasing role in international trade and domestic distribution. “As El Paso and McAllen are directly benefiting from the increasing strength of the Mexican economy, this acquisition fits our long-term investment strategy,” says Rob Neal, managing partner of Hager Pacific in a press release. “Many US companies are currently modifying their supply chains to take advantage of 'near-shoring' as Mexico becomes a more viable alternative to China as a low-cost manufacturer.”
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