WEBSTER, TX-Weingarten Realty Investors has disposed of its only property in the far southwest submarket, the 112,484-sf NASA One Business Center. The flex industrial asset, with three retail tenants in place, has sold for less than the $8.5-million ask to a Southern California investment group.
The two-building complex on eight acres, assessed at $3.8 million, was handed off to 1031 exchange investor, Right Brain Predictions. "Weingarten owned this for 10-plus years and had maximized the value on it," explains Rusty Tamlyn, principal and managing director for Trammell Crow Co.'s capital markets group in Houston. He and TCC vice president Ralph Tullier represented Weingarten in the disposition of 100 E. NASA Rd. while Steve King, vice president in Houston for CB Richard Ellis, handled the buyer's side of the talks.
Tamlyn tells GlobeSt.com that the NASA One Business Center is a rare breed for its 1980 vintage, having been constructed as flex industrial space. In recent years, the space has been leased for retail use. As a result, the lease rates reflect retail prices, averaging $11 per sf to $12 per sf net. The 87%-leased buildings hold a travel agent, paint store and furniture store.
NASA One's partial conversion into retail space made marketing a challenge, Tamlyn says. "Some of the people interested in the deal couldn't understand why rents were so high in that space," he adds.
In a six-month marketing period, eight offers went on the table. Tamlyn says Right Brain Predictions triumphed over other bidders because it was motivated to close quickly to satisfy the exchange requirements. "We've done a number of deals with Steve King and we know him as a good broker," he adds. "We know he always finds qualified buyers."
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