Henry Hagendorf, vice president with Grubb & Ellis Co.'s Houston office, says the warehouse at 8910 Lawndale St. ended up attracting 10 to 15 offers during a six-month marketing period. Hagendorf leases the project and negotiated the transaction with Sperry Van Ness' senior adviser Brian Hines. Hagendorf says the Los Alamitos, CA seller offered $400,000 in financing to sweeten the pot.

"He's a doctor who owns a number of medical clinics in California," Hagendorf explains, adding that geography was the main reason for bringing the asset to market. "The market is hot and he'd fixed and stabilized the property so it was a good time for him to sell." Hagendorf tells GlobeSt.com that the buyer's offer and familiarity with the market tipped the decision his way.

The 30-year-old building underwent a renovation in 2005 when occupancy was 50%, according to Hagendorf, who adds the improvements brought the occupancy to 87% with additional upside in the location. Tenants include Northern Safety Co. Inc., Texas Railcar Supply and Rio Grande Distributor LLC.

The building is about one mile from the Port of Houston's ship channel. "The port is a major economic driver for the City of Houston and that area is really a lot about new development," Hagendorf says. "The submarket is growing to serve the increasing port business."