HOUSTON-Kagan Realty Investors has sold the 86,700-sf Interbelt Business Center, a multi-tenant industrial service center, to a group of local partners doing business as South Texas Land.

Built in 2001, the two-building asset at 5210-5280 N. Sam Houston Parkway East, near the Bush Intercontinental Airport, was 88% occupied at sale time. "Kagan had owned this since its development in 2001," says Rusty Tamlyn, principal with Trammell Crow Co.'s capital markets group in Houston. "They'd leased up the property and had stabilized it, creating value, so they just wanted to realize the value in the property." He and TCC colleague Ralph Tullier represented the local seller in the one-off disposition from the metro-area portfolio.

Tamlyn tells GlobeSt.com that the buyer used funds from a 1031 exchange to purchase the property. "The buyer is planning this as an investment hold," he adds. "As far as I know, there are no plans to upgrade." There are many strong benefits to the property, he says, including strong visibility and convenient location to many parts of the city, including the airport. The building features an 18-foot clear height and grade-level, rear docks.

Tamlyn declined to comment on the price of the property, which came to market without an ask. However, sources point out that property in the area can go for $38 per sf to $42 per sf. Brady Wilkins of Welford Capital Partners in Houston represented the buyer in the transaction.