Ernest O. Perry III, Vintage's managing partner, tells GlobeSt.com that the property at 7301 Trinity Blvd. has been under contract since October, taking longer than usual to iron out issues to get it to the closing table. The deal closed three days ago. The seller is a limited partnership, led by Furst Commercial Real Estate Inc. of Irvine, CA, which owned the $9.87 million-assessed property since February 1998.
With the deed in hand, Vintage has jumped into $1 million of upgrades. Perry says the work will be done over a two-year period, with the hammers now beginning to swing on a roof replacement.
The Riverbend distribution building is 82% leased. Perry says tenants have three to five years left on their pacts. And, he's got two prospects, each eyeing the 82,000-sf balance. The industrial space is being marketed for $2.75 per sf, triple net. "We feel like the leases in place are well below market," Perry says. "There's upside in the existing rents and the vacant space that we can get leased in short order."
The building's location near the intersection of Loop 820 and Texas 121 and its design--25% freezer/cooler space--also carried weight in the decision to buy the property, according to Perry. The lead tenant is MBM Corp., a leading food service distributor in the US.
The Riverbend building was marketed by Bob Scully with Trammell Crow Co. For Perry, the win is 10-month-old Vintage's sixth in five months in a bid to acquire $100 million of real estate in its first operating year. Perry says the deal closed with a five-year, fixed-rate loan from Stamford, CT-based GE Commercial Real Estate.
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