Class-B Industrial Offers Optionality for Different Use Cases
Fort Capital has established itself as an aggressive purchaser of class-B industrial assets with the ability to capitalize on market and capital improvements to unlock maximum value for investors, says Fort’s Wolff.
FARMERS BRANCH, TX—The industrial division of Fort Worth-based investment firm Fort Capital was established in the second quarter of 2017 with an aggressive goal to acquire 2 million square feet of industrial assets by third quarter 2019. The firm is well on its way.
Fort Capital recently acquired the Valwood Portfolio, a five property light industrial portfolio totaling 157,000 square feet. The properties are located at 3113 Garden Brook Dr., 3109 Garden Brook Dr., 3300 Garden Brook Dr. and 3500 Garden Brook Dr., all in Farmers Branch, and 4101 Lindbergh Dr. in Addison, TX, GlobeSt.com learns.
With the addition of the Valwood Portfolio, Fort Capital now owns 1.71 million square feet. The company has established itself as an aggressive purchaser of class-B industrial assets with the ability to capitalize on market and capital improvements to unlock maximum value for investors. Class-B industrial offers the most optionality for different use cases in the long term, making it a top choice for Fort’s buys, says Steve Wolff, Fort Capital vice president of industrial acquisitions.
“Class-B industrial’s optionality is attractive is because of the diverse tenant pool it will always attract,” Wolff tells GlobeSt.com. “This includes but is not limited to medical, technology, food services and a myriad of light manufacturing and distribution users. In addition, this type of product can easily be repositioned at some point to entice tenants who will pay more for their space, i.e. creative office.”
Fort is committed to building this industrial portfolio across key Texas markets, including Dallas/Fort Worth, Houston, San Antonio, El Paso and the greater Austin area.
“This acquisition is a great example of Fort Capital’s ongoing commitment to growing our industrial presence in the Dallas-Fort Worth market,” Wolff says. “The portfolio is strategically located in two of DFW’s top submarkets, Valwood and Northwest Dallas. The additional 157,000 square feet puts us in an excellent position to exceed our industrial acquisition goal of 2 million square feet by third quarter.”
Fort’s activity has been further accelerated by the recent hire of Wolff and the roll-out of a broker incentive program.
Dallas topped two key categories in the venerable industrial market. It led the top five lists for space under construction (30.9 million square feet) and absorption (23.4 million square feet). And, it ranked second for construction completions during the 12-month period, with 29.4 million square feet, behind Los Angeles with 39.3 million square feet, according to a report by Avison Young which analyzed activity from second quarter 2018 through first quarter 2019.