HOUSTON--Sealy & Co., sponsor of Sealy Strategic Equity Partners (SSEP), has acquired the 2.23 million-square-foot Southwest Properties industrial portfolio, which consists of 149 buildings located in three of the fund's target markets: Dallas, El Paso and New Orleans, LA.

Sealy & Co. was unable to respond to a request for additional comments by press time.

With the acquisition, the SSEP portfolio will realize a 25 percent increase in square footage to 8.86 million square feet, a 23 percent increase in total asset value up to $380 million, and further diversification by tenant type, market and number of tenants. The Southwest Properties portfolio contains assets which feature an average office finish of 18 percent and are functional with respect to clear height, loading areas, parking and access. The portfolio consists of two sub-portfolios: the class B portfolio of 12 traditional warehouses in Texas and Louisiana, and Mustang Creek, which consists of two master-planned business parks featuring buildings that are functional for light distribution and service center uses located in Forney (east of Dallas). The assets were purchased at a significant discount to replacement cost and are currently 94 percent occupied.