"These were all income-producing properties with redevelopment appeal," says James Foreman, senior director with Cushman & Wakefield of Texas Inc., who represented John P. Madden in the portfolio's sale to local firm, Dulles Cartwright Ltd. Foreman says the buildings are older, but still functional and all located less than one mile apart.
Madden pulled the portfolio together at different times. The buildings date back to 1915, with the majority of them built in the 1970s. Similar assets have traded for $40 per sf to $50 per sf. Foreman, who teamed with C&W associate Louis Kaleel, tells GlobeSt.com that the seller had the properties awhile and wanted to deploy his capital into other assets.
The portfolio consists of a five-building complex, totaling 30,825 sf, on a little more than one acre at 3409 Garrow St.; a two-warehouse park at 4510 Navigation Blvd., totaling 26,210 sf on a half acre; and a 14,214-sf warehouse on nearly one acre at 2911 Rusk St.
Foreman says market conditions and demand in the near southeast sector are favorable for industrial property owners today. Recent figures from Grubb & Ellis show a vacancy rate of just under 3% in the submarket's 40.8-million-sf inventory, with little new product coming on line. Rents are averaging $4.30 per sf, net annually.
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