Multi-State Industrial Portfolio is Open for Offers
More than 30 industrial sites in the largest markets of California and Texas can be repositioned or redeveloped into numerous uses with in-place zoning or anticipated rezoning, says the CBRE leasing team.
AUSTIN, TX—AT&T is marketing a portfolio of 33 industrial sites that are poised for redevelopment or value-add repositioning in the largest markets of California and Texas. The sites have been used by AT&T as industrial work centers and can provide a new owner with the ability to maximize value through repositioning or redevelopment into infill class-A industrial, transit-oriented multifamily or other uses with in-place zoning (or with anticipated rezoning).
The offering is structured to allow qualified investors the opportunity to bid on the entire portfolio, select pools and in certain instances, individual assets or combinations thereof. The date for first-round offers is anticipated to be on June 6.
Many of the sites are located within opportunity zones, and 11 of the Texas assets are located within the greater Houston, Austin and San Antonio markets. In addition, 18 of the assets are in California with the highest concentrations in supply-constrained submarkets in Los Angeles, San Francisco and San Diego. Nearly all of the properties in the portfolio benefit from excellent access and proximity to major arterials, highways and in many cases, global seaports.
CBRE Capital Markets has been exclusively retained by AT&T to lead the marketing efforts. Patrick Arangio and Jack Howard of CBRE capital markets’ national portfolio sale advisors based in the firm’s Midtown Manhattan office, and Kurt Altvater of CBRE’s San Francisco office, have been retained by AT&T to act as the exclusive advisors for the sale.
“This offering provides the opportunity to acquire a diversified portfolio of prime industrial and multifamily sites strategically located in infill locations with significant redevelopment potential. Asset sizes, pooling structure and the targeted bid process will appeal to both institutional and individual investors,” said Arangio.
The seller will leaseback many of the properties for up to three years post-closing on a NNN basis as it concludes operations at the respective sites. This structure provides qualified investors with immediate cash flow from an investment-grade tenant coupled with significantly reduced carry costs, while working to finalize redevelopment plans and the entitlements associated with respective business plans.
“Qualified investors can benefit as a counterparty to one of the world’s largest corporations,” Howard tells GlobeSt.com. “Nearly all the properties in the portfolio benefit from excellent access and proximity to major arterials, highways and in many cases, seaports.”
Houston industrial absorption was flat in first quarter 2019, with 58,774 in negative absorption posted for the first three months of the year. Interest among occupiers remains strong with slightly more than 13.2 million square feet in active requirements tracked by CBRE research.
CBRE tracked nearly 1.8 million square feet in new leases or expansions signed during first quarter 2019. The construction pipeline was 13.8 million square feet at the end of first quarter 2019 and was 38.9% pre-committed. Absorption of nearly 350,000 square feet within the North submarket resulted in a submarket vacancy rate decline to 6.2%.