Investors Gain Confidence in NW Houston Industrial
Investors find strength in the northwest Houston submarket as it continues to become more in-fill and with very limited flex product built this cycle, buyers have the ability to underwrite future rent growth.
HOUSTON—With limited flex options available, many investors are choosing to nab more than one property when the opportunity strikes. Such was the case when GBP Industrial purchased a 93,000-square-foot flex/R&D building at 7207 Gessner Rd. earlier this year.
Another flex/R&D building recently caught the eye of the private investment group; this time in the form of a 63,550-square-foot flex/R&D building at 5050 Westway Park Blvd. GBP Industrial purchased the fully leased building from Houston-based Vigavi. The purchase price was undisclosed.
The property is set within the northwest industrial submarket, which captured nearly 30% of Houston industrial leasing in the second quarter of 2018. The submarket closed the quarter with a total vacancy rate of 5.6%.
“Continued strong performance is expected for the northwest Houston submarket and investors are confident in the submarket’s long-term strength as it continues to become more in-fill,” Dustin Volz, JLL’s industrial capital markets lead for Texas, tells GlobeSt.com. “There has been very limited flex product built this cycle that competes, thus giving buyers the ability to underwrite future rent growth.”
Built in 2009, 5050 Westway Park Blvd. encompasses office, warehouse and lab space. The building is fully leased to three tenants, Acosta Inc., Carbo Ceramics Inc. and M-TriGen Inc., representing the sales and marketing, technology, and energy industries.
Features of the building include high-end interior finishes, four dock-high doors and a fenced truck court. Located in Beltway 8 Corporate Center, the building provides access to Beltway 8, Interstate 10 and US Highway 290.
Both flex/R&D transactions were facilitated by JLL capital markets experts. Volz, Kevin McConn, Rick Goings, Zane Marcell, Richard Quarles and Mark Nicholas led the JLL team on the transaction.
“This is a high-quality asset in a thriving submarket,” said Volz. “With a history of full occupancy and first-rate tenants, this building offered investors a strong income stream with cash-flow stability.”