HOUSTON—Adler Kawa Real Estate Advisors recently acquired Vista Point North office and industrial complex in the Lewisville/Denton submarket of Dallas and is now continuing to expand its Texas portfolio. Located in Houston's Energy Corridor, the Miami-based firm has picked up The Business Center at Park Ten (Park Ten).
Park Ten is a 115,200-square-foot complex comprised of three buildings offering industrial and flex space. Financial terms of the transaction were not disclosed.
AKREA has purchased five properties in Texas and the Carolinas through the Adler Kawa Real Estate Fund II, which launched in early 2013 and closed with $56 million in discretionary capital in February 2014.
Park Ten is located within a 550-acre, master-planned complex that stretches for more than two miles along Interstate 10 and encompasses more than one-third of the total rentable square footage within the Energy Corridor. Originally developed in 1998, Park Ten offers high quality light industrial and flex space complete with 18-20 foot clear-height ceilings, grade-level and dock-high loading capabilities, and an accessible location right off the Interstate.
The Park Ten complex is currently 92% leased, with a tenant base consisting largely of energy and infrastructure companies, including Lloyd's Register Drilling, PGS Americas, Oilfield Testing & Consulting, and Reel Group.
“With a stable roster of credit tenants, strong in-place yield, and a choice location along I-10, the Business Center at Park Ten aligns with AKREA's underlying investment criteria,” says Matthew L. Adler, president and CEO of AKREA. “Our management strategy will focus on sustaining and growing the property's occupancy rate while undertaking some routine maintenance projects that will keep the buildings in institutional-grade condition.”
Rusty Tamlyn and Trent Agnew of HFF represented the seller, Columbia Texas Park Ten, in the transaction. Paul Stasaitis and Jorge Portela from HFF's Miami office secured favorable financing terms for the purchase on behalf of AKREA.
Adler Kawa Real Estate Fund II is focused on purchasing multi-tenant office and industrial assets in the southern and eastern US. The management team's previous fund, the Adler Real Estate Fund, completed transactions valued at more than $460 million and acquired assets totaling more than 4.5 million square feet.
The team's Texas portfolio includes more than 1 million square feet of office, industrial and flex space located across various markets in the state.
“Texas—and Houston in particular—continue to outpace national averages when it comes to key metrics such as economic growth and population trends,” Adler says. “The Energy Corridor submarket is experiencing high demand amidst limited existing supply, which have pushed rental rates to two-year highs. All of these factors contributed to our purchase of Park Ten.”
In GlobeSt.com's previous article, Adler said that “The Texas market is more complicated that it was three years ago. In particular Dallas, Houston and Austin are on a lot of investors' lists, there is no question there is more competition and I expect that to continue through 2014.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
