Buyer Bets Big on Brownsville
PacVentures has been a Brownsville submarket owner for many years, steadily increasing its presence with the recent acquisition of vacant land next to the NAFTA Business Park and a 10-building industrial portfolio.
BROWNSVILLE, TX—Commercial activity is hopping in this port city, due to strong fundamentals at play throughout the region. Recently, PacVentures acquired a 10-building industrial portfolio totaling 811,092 square feet from Sealy. The purchase price was undisclosed.
The properties are 1000 Billy Mitchell Blvd. with 120,120 square feet, 1900 Billy Mitchell Blvd. buildings A-D with 375,000 square feet, 200 Texas Ave. with 64,956 square feet and 600–800 Elca Lane with 251,016 square feet.
Andrew Kaplan, founding principal of PacVentures, led the PacVentures acquisition and underwriting team, while Steve Rowland with Transwestern and Joe Simmons with Aquila Commercial represented PacVentures in the purchase process.
“This portfolio was a compelling opportunity because of the strong near-term fundamentals of the South Texas industrial market,” said Rowland. “PacVentures anticipates a negligible amount of speculative development, relieving concerns about new supply potentially impacting continued upward rent pressure.”
PacVentures has been an owner for many years in the Brownsville submarket where these properties are located. The company has been steadily increasing its presence, with the recent acquisition of vacant land next to the NAFTA Business Park.
“We have seen a recent surge in rents within our existing Brownsville portfolio and with healthy fundamentals and an extended trade agreement between the US and Mexico, we do not see any reason why this trend shouldn’t continue,” said Kaplan.
The total portfolio is 96% leased, with notable tenants such as Trico and affiliated company Carter Fuels occupying 725,000 square feet. Trico has been a tenant since 1996 and has expanded from one building to five.
“Both the Port of Brownville has experienced solid recent shipping growth as well the airport is undergoing a $120 million new runway and new terminal expansion really enhancing that entire South Texas region,” Rowland tells GlobeSt.com.
Indeed, efforts by the city of Brownsville and the Department of Aviation are underway to begin construction of a new 85,000 square-foot passenger terminal to better serve the needs of the region for business and leisure travel. Slated for completion in late 2019/early 2020, the current terminal of Brownsville South Padre Island International Airport will be replaced by a modern, functional and efficient facility, GlobeSt.com learns.
The Port of Brownsville has a vital ship recycling industry that works on 80% of the ships recycled in the US. There are 18 docks broken down by 12 cargo, four oil, one liquid and one bulk, on approximately 40,000 acres comprised of 13 acres of storage and 65 open acres. The Port is located at the southernmost tip of Texas at the end of a 17-mile channel that meets the Gulf of Mexico at the Brazos Santiago Pass.