With the closing for 420 E. Danieldale Rd., the Houston-based REIT got control of its largest industrial asset in the region. Adding to the sense of security with the triple-net lease is the location: neighboring another McGraw-Hill facility and part of the inland port designated bounds.
"With so much attention in South Dallas County, that story plays well now if you have an asset in that area," says Tom Pearson, senior director for Cushman & Wakefield of Texas Inc. "We did play up that angle in our marketing."
Weingarten closed the all-cash deal in a two-month start to finish for the seven-year-old, class A bulk-distribution warehouse with its original owner, a private investor from California who was ready to hand off his only claim in Dallas/Fort Worth. The dealmakers won't break the confidentiality clause to discuss the price, but are labeling it one of the highest in the submarket for generic bulk distribution space. "The pricing on this is one of the highest that's been achieved in the market for a single-tenant building with no specialty finish," Lizzy Pappachen-Blake, a C&W associate director, tells GlobeSt.com.
The 20.4-acre holding, positioned 20.4 acres at the crossroads of interstates 35 and 20, came to market without an ask, attracting bids from a healthy mix of private investors, institutions and triple-net buying groups for the Hartford, CT-based UBS listing. Local sources confirm that the Fortune 500 company's name on the build-to-suit lease, which has three five-year options to extend, pushed the bidding to $22.56 million, with Weingarten scoring the win as the highest offer in the stack and raising the bar with a record price.
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