Burnet Bay Trades 403 Rail-Served Acres

BAYTOWN, TX-Land totaling 403 acres on the west side of town changed hands between two Houston investors, with the buyer planning to hold the acreage for awhile before making plans. Though the price was kept under wraps because of confidentiality agreements, area sources note that land in that quadrant of the market can sell for between $10,000 and $15,000 per acre.

Scott Davis, VP with CB Richard Ellis' Houston office, says the land provided an ideal investment for buyer Fuller Thompson Ten Ltd. because it fronts Interstate 10, while being close to the Houston ship channel. Davis, who represented the buyer in the transaction, also pointed out that there is a rail line adjacent to the land. The buyer and seller Burnet Bay, Ltd. are both partnerships that have other holdings throughout the Houston area.

Though there is still a lot of acreage in and around the Baytown area, Davis points out that the ability to find quality land, that has good frontage and is rail-served, is dwindling. "There's still this type of land left, but not a whole lot," he tells GlobeSt.com. "This was great for the buyer because it's near the ship channel, and it seems as though everyone wants to be there these days."

Though Fuller Thompson Ten Ltd. has no plans to develop the land, statistics support Davis' assertion that demand is huge for industrial product, especially on the east side. According to Q3 2007 results released by Grubb & Ellis Co.'s Houston office, the East Southeast Far market has a total industrial product inventory of 22.9 million sf, with a 1.8-million-sf vacancy, leaving a vacancy rate of 8.1%. The report also points out that continued high energy prices, low interest rates, a weak dollar and growing global economy will continue to drive the Houston area's industrial market. Davis teamed with CBRE-Houston colleagues VP Larry McWherter and associate Laura Smith. Burnet Bay Ltd. was self-represented in the transaction.