HOUSTON-Following a three-year stint as owner, Mitsubishi Power Systems America Inc. sold its 87,500-square-foot industrial manufacturing and training facility to AEP LLC. The buyer paid $12.3 million for the asset, located in the far northeast submarket.
According to records from the Harris Central Appraisal District, the facilities at 8146 Miller Rd. were completed in 2009 and are situated on 14.5 acres. And, according to Jason Donald with Cushman & Wakefield of Florida Inc., Mitsubishi Power Systems has been there for three years.
“Mitsubishi typically doesn’t own properties,” explains Donald, who teamed with Cushman & Wakefield of Florida colleague Patrick Berman to represent the buyer. Donald says the asset was widely marketed, and that in closing the transaction, AEP required flexibility in working with the tenant’s needs.
Mitsubishi Power Systems America uses the facility for repair, inspection and overhaul services for the western hemisphere. It’s also used as a global academy for fossil outage training.
Donald tells GlobeSt.com that similar types of single-tenant assets are coming to the market. Even as more product is being offered for sale, investors are coming out of the woodwork to buy it.
“People are eager to monetize and capitalize on the value of these tenants’ creditworthiness in the open market,” he says. “This is one of the hottest real estate sectors at this time.”