Two years ago, the warehouse was constructed by Turner Adreac as a build-to-suit for TruGreen/Chemlawn. The seller of record is TA/Valcor Sugar Land Industrial Ltd. David Butler of the Houston office of Colliers International tells GlobeSt.com that his client is a group of investors that decided to sell and shift the funds into another property. The investment group, however, isn't finessing a 1031 exchange with the proceeds.
Don Arnold Jr. of Arnold Associates represented the buyer. He says the property comes with a 10-year lease by TruGreen/Chemlawn.
Butler says 1031 exchanges, prevalent in the West, are really picking up speed in Houston. "The benefits of a 1031 exchange to the seller are huge because they don't dilute the investment by paying taxes," Butler explains. He believes Houston will end up as strong as California, where 70% of the single-asset deals are 1031 exchanges, as investors become more educated about the benefits and built-in flexibility.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.