Pollard Galipp with Cypressbrook Co. in the Woodlands says the lease was inked and the move-in started in recent weeks to put a tenant into a "for sale" property at 9201 Grogan's Mill Rd. "CVS obviously is getting a good deal," Galipp says, adding the going rate is 40 cents per sf to mid-50 cents per sf gross.
Galipp tells GlobeSt.com that he was negotiating with Eckerd, which has large distribution center about a mile away, and then talks went quiet until the buyout papers were signed. CVS picked up the talks, signing within days of taking over its competitor, according to Galipp. "If I were to speculate, I'd say the air conditioning won the business," he says, adding the immediate deal took down only warehouse space in the 72,000-sf building.
CVS signed an interim lease "that renews month to month with the potential for a long-term deal," says Galipp, who ran the deal along with Cypressbrook principal Michael Novelli. Bob Berry with the Dallas-based Staubach Co.'s Houston office represented CVS Pharmacy.
A Cypressbrook partnership bought the building and 10 acres in mid-August--with a plan for an immediate flip--after Cardinal Health Inc. moved to a 250,000-sf build-to-suit near Interstate 45. The sell-off plan has divvied the land into five-acre tracts. Galipp says he has "several interested parties" and hopes to latch onto a contract this month for the vacant five acres, tagged for sale at $6 per sf. The warehouse, with a 28-foot clear height, and its tract are on the market for $2.8 million.
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