DALLAS-A Southern California-based investment group, pushing into North Texas just last month after an 18-month hunt, has closed on a second industrial portfolio in the region. Sources have pegged the latest deal, 706,981 sf of class A industrial/flex space, at $72 million.

The back-to-back buys have "helped us to achieve some product and geographical diversity that we were targeting," Stephen King, COO for the Garrett Group LLC of Temecula, CA, explains to GlobeSt.com. The region's new buyer was deploying proceeds from two office building sales in Ontario, CA.

In the newest deal, Garrett picked up a 98%-leased, 12-building portfolio in Valwood Industrial Park in Carrollton and Westway Business Park in Arlington from Dallas-based Americo Real Estate Ltd. In mid-April, Garrett bought the 148,388-sf Redbird I at 5050 Investment Dr. and 150,418-sf Redbird II at 4545-4687 Mint Way, a 90%-leased package in Dallas that it took from American Realty Advisors of Glendale, CA.

Locally based Bradford Cos. will manage the more than one million sf that Garrett's just bought. CB Richard Ellis has won the nod to lease it.

The Garrett Group got an extra 11.66 acres with Westway park, but the team's still evaluating what and when to develop on the site, which fronts the frontage road of Interstate 20 near Matlock Road. The buyer is a historic long-term holder so there's no immediate pressure to build.

The Garrett Group is marking its second year of buying outside California. "It was Phoenix, Denver and now Dallas," says David Hubbs, the firm's director of income properties. Although those are the target metros, he says "we're still open to entering other markets."

Hubbs says Dallas/Fort Worth went into the spotlight for its demographics with respect to population growth, ranking as a regional financial hub and positioning as a real estate market poised for continued growth. And, he adds "you can still buy product at below-replacement cost."

The Garrett team is still shopping the market, but it doesn't have any preset buying goals. "We're happy with what we have, but we are always looking to expand," Hubbs says.

Garrett was up against eight would-be buyers for the Americo portfolio, according to Jud Clements, director for Holliday Fenoglio Fowler LP. He says the class A listing, going full circle within 90 days, brought in bids from institutional and private investors alike. Clements teamed with HFF associate director Rob Rieke to sell the package, which changed hands with in-place debt.

"The quality of the assets, quality of the locations and quality of tenants was the main reason for the success of the transaction," Clements says. About 7% of the leases roll in the coming year in a package with buildings ranging from six to 13 years and half of the space as office.

"It's a good solid tenant base with respect to diversity and good credit," Hubbs stresses. "We see as those leases roll that the tenants will renew." The upside lies in the ability to raise rents via new leases, he adds, saying the deals will be market-rate with the market itself dictating what will be charged.

The Valwood piece consists of a 54,000-sf Valwood 30 at 1616 W. Crosby Rd.; 99,656-sf Valwood 33 at 1400 Valwood Pkwy.; 98,965-sf Valwood 37 at 1650 W. Crosby Rd.; and 100,490-sf Valwood 45 at 1645 Wallace Rd. The buildings sit on 26.13 acres.

The 26-tenant Westway Business Park, totaling 34.83 acres, consists of the 25,103-sf building 1 at 4300 Beltway Place; 25,352-sf building 2 at 4360 Beltway Place; 24,120-sf building 3 at 4330 Beltway Place; 44,186-sf building 4 at 330 Westway Place; 64,558-sf building 5 at 320 Westway Place; 32,341-sf building 6 at 301 E. Stephens St.; 69,106-sf building 8 at 220 Westway Place; and 69,104-sf building 9 at 230 Westway Place.