LA PORTE, TX-A three-year wait for a two-building industrial property ended for DCT Industrial Trust Inc. as it just concluded an off-market acquisition of the rail-served, 312,964-square-foot facility near the Port of Houston. With the buy from Meritex Enterprises, the Denver REIT now owns an asset leased to a national 3PL tenant, and has entered the Port of Houston submarket.
The two buildings at 9701 and 9708 SH 225 are 114,380 square feet and 198,584 square feet respectively, and were built in the early 1980s. According to DCT's regional vice president Justin E. Bennett, the industrial properties were built by Trammell and Harlan Crow for Trammell Crow Distribution Corp. which is no longer in existence.
"Trammell was well ahead of its time when it came to construction of these buildings," Bennett explains. "They were built with thicker slabs and a higher clear height than what was typical." Another benefit is that the property is rail served, courtesy of the Port Terminal Railroad Association, or PTRA. PTRA, Bennett notes, is a preferred provider for the petrochemical companies and their suppliers. As such, "there's not a lot of vacancy in the rail market today," he tells GlobeSt.com.
Bennett says he's been keeping an eye on the property since 2009; between now and DCT's closing, it changed hands twice. He says he built a relationship with Meritex Enterprises, determined its willingness to sell, then went to the deal table. "Timing was key, as was the ability to move quickly," he comments.
Bennett says the buildings have been very well-maintained, plus the tenant is also taking care of it; it won't require any upgrades. He explains that the property has a wonderful history and, from a strategic point, it gives DCT good entry into the Port of Houston area. "The quality of construction and function of the building is what attracted us to the asset," Bennett explains. "Especially because it's in the Port submarket, that it focuses on a particular sector of the market (one served by PRTA) makes it a good investment for us."
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