DCT Broadens Footprint; Buys 111,000 SF

HOUSTON-DCT Industrial Trust Inc. closed on its third commercial real estate transaction within the past year. The off-market transaction added the 111,000-square-foot 7425 Pinemont, in the Pinemont Business Center, to the Denver buyer's growing industrial property portfolio.

DCT regional vice president Justin Bennett says he worked with the seller, Pinchal Family LP, for a year and a half to conclude the deal.  Ultimately Mace Pinchal and Bennett were able to get to the closing table for a mutually beneficial CRE transaction. David Boyd of Boyd Commercial helped negotiate the transaction between the two parties.

Bennett tells GlobeSt.com that landing industrial properties like 7425 Pinemont is becoming more difficult, given the competitive nature of the marketplace. "As more investors are seeking positions in Houston, it drives the prices of the assets up because there isn't a lot of supply here," Bennett explains. As such, the 7425 Pinemont acquisition is fortuitous for DCT as it's a modern, class A bulk facility with seven strong credit tenants – the 2001-built property is 98% occupied. Furthermore, "the location in terms of proximity to (U.S.) 290 and other main arteries in northwest Houston was attractive to us," Bennett says. "We were happy to find this opportunity through our local relationships."

The purchase of 7425 Pinemont follows two months after DCT acquired Claymoore Center. Earlier this year, DCT acquired close to 13 acres on which it will construct a 267,150-square-foot industrial property. And late in 2011, DCT closed on the 68,522-square-foot Greens Crossing IV.

Bennett goes on to say that the north and northwest submarkets continue to be an attractive target for DCT, and that the company will continue seeking acquisitions, as well as speculative and build-to-suit opportunities. Bennet's not ruling other submarkets out, however. "From an investment perspective, we'll look at opportunities in all Houston areas," he adds.