Repositioning Spurs 156,000-SF-Plus Sale

The building at 13401-13411 Gulf Freeway is one of a handful of Finger Furniture assets that is either being converted or sold as the company moves through the repositioning process. According to the company's web site, retail stores at 16762 Southwest Fwy. in Sugar Land, TX and 20050 State Highway 59 North in Humble TX have undergone the conversion to the Ashley Brand. The web site also notes that the 93,000-square-foot location at 17355 Tomball Parkway in the northwest sector is in the process of closing. Seller representative Michael T. Hill with Houston-based Michael Hill Properties would not comment specifically on whether Finger is selling any more assets as part of its repositioning.

When discussing the asset just sold, Hill says many buyers were interested in the 50-year-old building when it came to market, and that the locally based seller received six bonafide bids. He says the building's location on 12.5 acres along a major highway was attractive to potential investors. Ultimately, "Ampak made an acceptable proposal and we felt they were able to perform," he comments.

Ampak Investment will use the approximately 105,000-square-foot warehouse, while leasing out the remainder. "They were going into that market and started looking over a year ago to locate a property that would fit their company," says buyer broker Aron Grenader, president of First Houston Properties Inc. "This gave Ampak an investment in the upside. They'll lease out the front portion of the facility," he adds.

Grenader says Ampak is currently performing building upgrades, and will move into the warehouse portion over the next few weeks. "The front showroom space is occupied for the next three months as part of a sale-leaseback," he tells GlobeSt.com. "We're in the process of marketing that space and we have some people interested, though nothing is finalized yet."