GRANDVIEW, TX-SkyWalker Property Partners has acquired a 144,500-square-foot foreclosed industrial complex, with plans to beef up and lease up the property. The Arlington, TX-based buyer struck a deal for the asset with US Bank and plans to invest $250,000 in the 87.9%-occupied property located in Johnson County.
Situated on 16.8 acres at 8800 E. Farm-to-Market 916, SkyWalker claimed the asset for its Hangover Opportunity Fund, which is seeking out distressed commercial office, retail and industrial properties. However, "It is getting harder to find distressed properties out there," says Clint Holland, acquisitions director for North Texas-based SkyWalker Property, the fund's managing partner.
Because of that, SkyWalker placed an offer on the property on the day of its tour. "We acted very quickly to tie it up," Holland says. "There is built-in cash flow to sustain the property with upside potential to lease the vacant space."
Upgrades to the property will include surface repairs to the parking area, as well as fixing the roofs, walls and doors of the 82,000-square-foot and 45,000-square-foot buildings. In the larger building, improvements to a 7,500-square-foot office are planned. The third structure, totaling 17,500 square feet, is leased to AES Drilling Fluids Inc.
The buyer was represented by Michael Newsome of NAI Robert Lynn. He and NAI Robert Lynn's Todd Hubbard, who represented the seller, are leasing the property for the new owner.
"With the market tightening up, we felt there could be some opportunities with the property. It has good bones and wide open spaces," Holland says. "We bought it at a substantial discount to replacement cost so we can be creative in structuring leases to be a true value-add product."
In recent months, Johnson County Economic Development Corp. has received several requests for proposals from companies seeking industrial space due in part to the area's large pool of blue-collar workers. As part of the buyer's marketing plan, the property is being added to the county EDC's website.
"There continues to be a high level of leasing activity here locally for property with outside storage," Newsome says, "With the aggressive rental rates we expect to fill the remaining vacancies in a timely manner.”
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