Off-Market Package Drums Up $28M Plus for Texas Exit

Southern California partners from Palm Desert, completing back-to-back closings as single-asset entities, bought Aviall Inc.'s 303,734-sf headquarters and regional distribution center at 2750 Regent Blvd. and Hitachi America Ltd.'s 72,056-sf microchip facility at 1401 N. 27th Ave. Seller HBO Acquisitions acquired the properties three years ago as its Texas inroad. Its broker then and now, Thomas E. Clarke, senior vice president of investment sales for Grubb & Ellis Co.'s Dallas office, says HBO wanted to sell and reinvest the gain into its southeastern markets.

Clarke tells GlobeSt.com that the off-market sale went full circle in less than 65 days, with the SoCal buyer assuming the 8.5-year balance of a 10-year loan, with a 30-year amortization, held by the Stamford, CT-based GE Capital Real Estate. "It had to go as a package," Clarke says of the seller's chief requirement.

The Aviall building sits on 13.8 acres and includes a four-acre tract for a 100,000-sf expansion that could come out of the ground in 2005, according to Clarke. It was built by Perot Development Co. of Dallas and sold to HBO shortly after completion. The Hitachi facility, designed with 18,000 sf of mezzanine expansion area, is positioned on 4.3 acres and rose as a project of the locally based Trammell Crow Co. and Crow Family Holdings. Clarke says both tenants' leases have more than 10 years left on their terms. The Foreign Trade Zone buildings, both three years old, are situated in the airport's northern sector, where acreage has been carved into development tracts and leased with 40-year terms.

The SoCal buyers set up 6505 Paramount Associates LLC to buy the Aviall property and Paragon Foothill LLC for the Hitachi acquisition. Allan W. Young, managing partner in San Antonio for Dallas-based Stream Realty Partners LP, introduced the buyers, a pair of industrial developers, to the deal. "They said to let them know if I found anything of interest," he says of a simultaneous takedown that fully satisfied 1031 exchange requirements from SoCal sales.