Kempwood Tech Center was an opportunity for an investor to reposition the older assets within.
HOUSTON—In an area where institutional assets are king, CG7600 LP recently purchased the Kempwood Tech Center, three class-B flex industrial warehouse buildings totaling 113,117 square feet in Houston's Northwest industrial submarket. The Northwest Industrial submarket is the largest submarket in Houston by square footage and home to the largest concentration of institutional ownership in the city.
“With more than 1.4 million square feet of net absorption over the 12 months trailing first quarter 2019, the Northwest submarket continues to be one of the strongest performing submarkets in Houston and has remained a target for institutional investment,” Martin Hogan, HFF senior director, tells GlobeSt.com.
Situated on 7.18 acres at 2700-2778 Bingle Rd., the industrial portfolio is located at the signalized corner of Bingle and Kempwood roads near two of Houston's busiest freeways, Interstate 10 and US Highway 290. The one-story buildings feature between 14- and 16-foot clear heights, 30 grade-level loading doors and varying amounts of office space. It is currently home to two tenants.
HFF marketed the portfolio in conjunction with Ten-X on behalf of the seller, special servicer LNR Partners LLC. The HFF investment advisory team representing the seller was led by Hogan and real estate analyst Charles Strauss. Scott Wilkerson, an in-house broker for Garver Real Estate, handled the acquisition for the buyer.
Hogan pointed out the unique appeal of the properties from an investment standpoint.
“Kempwood Tech Center is an exceptional opportunity for an investor to reposition older assets in one of Houston's largest and best-performing industrial submarkets,” Hogan said.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
