THE WOODLANDS, TX-A Southern California family partnership has taken proceeds from a 1031 exchange to acquire its first property in the area, a 113,175-sf bulk distribution warehouse, currently occupied by CVS Corp.

The Woonsocket, RI-based CVS has five years left on its lease for the facility at 301 S. Trade Center Parkway, built in 1998 on 8.13 acres in the Woodlands Trade Center. CVS uses the warehouse as its distribution portal for stores in the Greater Houston metro, Central Texas and Louisiana.

The property came to market without an asking price. A confidentiality clause is blocking release of the sale price. Similar properties in the area, though, have sold for $40 per sf to $60 per sf, with some hitting $100 per sf, says Rusty Tamlyn, principal with Trammell Crow Co.'s capital markets group in Houston. "But those were for specialty distribution and warehouse properties, with office space," he says.

In closing the deal, Tamlyn tells GlobeSt.com that the Bourguignon Family LP of Orange County, CA gained a five-year tenant in "an all-cash transaction without a loan contingency." Tamlyn and TCC's Ralph Tullier represented the joint venture seller, the Woodlands Development Co. LP and Midway Cos. of Houston. David Bourguignon of Coldwell Banker Commercial of Orange County, CA oversaw talks for the buyer.

CVS' lease rate isn't readily available, but tenants, on average, are paying $4.50 per sf, triple net for industrial space in the Woodlands. "It can vary from $4 to $5 per sf for straight distribution and end up at $12 per sf, triple net, for R&D," Tamlyn adds.

Because of the popularity of the Woodlands area for investments, the offering generated a good deal of interest during the 30 to 45 days it was on the market. "The buyer was very knowledgeable," Tamlyn says. "They own other industrial properties throughout the United States."