HOUSTON-A vacant 408,000-sf Walgreen distribution center will have a second life as a multi-tenant industrial building thanks to its acquisition by Capital Commercial Investments Inc. of Austin. The investment company has purchased the vintage building at a deeply discounted price to a marked-down ask of $8.9 million.
The building at 8110 Kempwood Dr., constructed in two phases in the 1960s and 1980s, was on the market nearly two years for $12 million. "The building was in good shape when it went on the market. It was the original distribution location for Walgreen. Then, they moved out about a year ago," says Michael Hill, managing partner with locally based Michael Hill Properties Inc. He represented buyer and seller, Walgreen Co. of Deerfield, IL.
Hill says the buyer plans to divide the building into multi-tenant spaces and lease it. The budget for reconstruction wasn't available.
Hill tells GlobeSt.com that the building, situated on about 20 acres, attracted several offers throughout the lengthy marketing period. "The buyer paid the right price," he says, adding there's little to be done with regard to deferred maintenance.
The building's location just outside the loop in the northwest submarket represents a prime investment for Capital Commercial, known for acquiring undervalued buildings throughout the US. Its MO is buy, upgrade, lease and then sell. Local sources say the upside is the asset's positioning in the northwest submarket where industrial demand almost always outpaces the region.
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