The Boston-based TA Associates sold the package at the behest of a large pension fund client that changed its allocation strategy and geographical focus, Jack Fraker, executive vice president in Dallas for CB Richard Ellis Inc., tells GlobeSt.com. He, CBRE's Randy Baird, senior vice president, and John Robinson, first vice president, brought out the package without an asking price in the latter half of 2003 and closed the sale about two weeks ago. The lengthy contract, Fraker says, was a mutually agreed scenario for "timing that worked out great for both sides."

The 84%-leased portfolio is made up of 10 buildings in Dallas/Fort Worth and five in Houston, all built between 1968 and 1989 and sitting on a combined 85 acres in Dallas, Tarrant and Harris counties. The warehouses range from 50,000 sf to 227,329 sf. The owner of record, Rainier Texas Properties LP exited Houston with the portfolio sale, of which 685,493 sf sit in Harris County.

Fraker says Sealy, with offices in Dallas and Shreveport, LA, beat out 10 to 20 others, many institutional investors, vying for the portfolio. The buyer secured a 90%-leveraged loan from Boston-based Greenwich Capital Markets Inc. to make the close with an 80% first mortgage and 10% mezzanine debt, both with fixed interest rates, according to Holliday Fenoglio Fowler LP's Brian G. Carlton, associate director.

"With that many assets, nine submarkets and 50 or 60 tenants, it was difficult to underwrite," says Carlton, who along with Jody Thornton, HFF executive managing director in Dallas, arranged the financing. "There were a lot of lenders who wanted it, but not a lot of lenders who wanted it at 90%." Greenwich's John Burke and Steve Cho handled the transaction for a Sealy team that included Greg Heck, Jason Gandy and Scott Sealy.

The Holt Cos. of Dallas is continuing to lease and manage the package, which has two empty buildings--5101 Statesman Dr. in Dallas and 1002 Avenue T in Grand Prairie--and a couple structures in need of new roofs. Also sold in Dallas/Fort Worth were 1625 Vantage Dr., 8611 Ambassador Row, 3439 Irving Blvd., 601 Mockingbird Lane; 12901 Nicholson Rd.; 1375 Avenue S; 2400 Centennial Dr.; and 300 Six Flags Dr. In Houston, the sold assets are 401W. Crosstimbers St.; 1401 and 1501 Greengrass Dr.; 1200 Silber Rd.; and 1801 Sam Houston Parkway.