“The Eastern submarket and port have a 1% vacancy,” Marc Perrin, managing partner of The Roxborough Group tells GlobeSt.com. “The petrochemical industry likes cheap oil and this submarket is a recipient of this cheap oil. We also invest in assets surrounding healthcare, like Plaza Del Oro. Finally, Westchase serves the local community so it is also insulated from the oil challenges.”

Triten and Roxborough's plans include strategic cosmetic upgrades to refresh the buildings' interiors and exteriors, and focused property management and leasing efforts tailored to each property.

“This deal is a testament to the strength of the Houston industrial market, especially the Eastside submarket,” adds Will Hedges, managing partner of Triten. “The portfolio's locations, tenant mix and product type have created a dynamic investment opportunity.”

The portfolio marks the first acquisition for the partners. Triten Real Estate Partners has established a strong local presence in the Houston market with this acquisition, bringing its industrial holdings to more than 1 million square feet.

“Each of these well-located assets serve demand that is insulated from the volatility in the energy markets,” said Dan Kodner, vice president of The Roxborough Group. “Institutional capital, however, has largely turned its attention away from broader Houston, which created an opportunity to acquire these properties at highly attractive pricing. Houston's increasingly diverse employment base and rapidly growing population have sustained its economy throughout the energy downturn, setting the stage for a strong rebound as the energy sector recovers over the coming years. We are excited to be partnering with Triten, a first class operating partner, to capture strong cash flow and create value through focused, hands-on management and leasing.”

HOUSTON—Eastside demand is driven by the booming petrochemical industry, which benefits from low energy prices, and is expanding via multibillion dollar projects along the Gulf Coast. Westchase's high-end infill location continues to draw steady demand, and the Texas Medical Center's rapid expansion is driving demand and reducing competitive supply.

Roxborough Fund I LP, an affiliate of San Francisco-based real estate investment firm, The Roxborough Group LLC, in partnership with Houston-based Triten Real Estate Partners LLC, recently completed an off-market acquisition of a three-property portfolio which fits this criteria. The 97% leased, 526,753-square-foot portfolio consists of Market Street Distribution Center located in the Eastside submarket, Westchase Business Center located in the Westchase submarket and Plaza Del Oro, which is located just south of the Texas Medical Center.

“The portfolio offers a compelling mix of income and upside we do not often see on stabilized industrial properties,” said Scott Arnoldy, managing partner of Triten.

The light industrial portfolio benefits from strong infill locations, functional product and lack of direct exposure to the energy industry. The portfolio's submarkets are well occupied and have recorded rising rents despite the market disruption in Houston.

“The Eastern submarket and port have a 1% vacancy,” Marc Perrin, managing partner of The Roxborough Group tells GlobeSt.com. “The petrochemical industry likes cheap oil and this submarket is a recipient of this cheap oil. We also invest in assets surrounding healthcare, like Plaza Del Oro. Finally, Westchase serves the local community so it is also insulated from the oil challenges.”

Triten and Roxborough's plans include strategic cosmetic upgrades to refresh the buildings' interiors and exteriors, and focused property management and leasing efforts tailored to each property.

“This deal is a testament to the strength of the Houston industrial market, especially the Eastside submarket,” adds Will Hedges, managing partner of Triten. “The portfolio's locations, tenant mix and product type have created a dynamic investment opportunity.”

The portfolio marks the first acquisition for the partners. Triten Real Estate Partners has established a strong local presence in the Houston market with this acquisition, bringing its industrial holdings to more than 1 million square feet.

“Each of these well-located assets serve demand that is insulated from the volatility in the energy markets,” said Dan Kodner, vice president of The Roxborough Group. “Institutional capital, however, has largely turned its attention away from broader Houston, which created an opportunity to acquire these properties at highly attractive pricing. Houston's increasingly diverse employment base and rapidly growing population have sustained its economy throughout the energy downturn, setting the stage for a strong rebound as the energy sector recovers over the coming years. We are excited to be partnering with Triten, a first class operating partner, to capture strong cash flow and create value through focused, hands-on management and leasing.”