Goodwill Acquires 124,000-SF Building

AUSTIN-Following two years as a tenant at Kelly Trade Center II on the southeast side, Goodwill Industries of Central Texas opted to become an owner. To that end, the organization acquired the 124,200-square-foot industrial building as well as an adjacent 3.5-acre parcel for expansion.

According to Graydon Laguarta, executive vice president with St. Croix Capital Advisors, the property at 6505 Burleson Rd. was developed on spec by Trammell Crow Co. during the late 1990s. It was acquired in 2007 by a TIC fund pulled together by St. Croix Capital Corp. Originally the site of numerous tenants, Kelly Trade Center II lost its final tenant when the economy collapsed. Goodwill Industries leased the space in late 2010.

Laguarta, who represented the seller in the sales transaction, tells GlobeSt.com that, while Kelly Trade Center II is an industrial building, it suited Goodwill Industries to a T. The charity has been able to house a job assistance center and community meeting rooms as well as retail and warehouse space.

"This was a huge benefit to them in that the front part of the building served as a retail location," Laguarta comments. "They pull things into the warehouse, repackage them and set them up in a retail store environment. With that location, they were able to achieve a higher-than-normal amount of sales success with this building, versus other locations."

He goes on to explain that the success of the site led the Goodwill managers to take steps to solidify a longer-term presence than what a lease could provide. One motivation to buy was that Goodwill's lease had staggered rates, and rent was about to go up. That, in turn, might have made the property more appealing to other investors,  Laguarta explains. "It was a situation of 'if we don't buy it, someone else will, and we won't have a chance to do this again,'" he adds.

The added incentive to the deal was the adjacent parcel. "They plan on expanding that operation, which was another important factor in buying the building," Laguarta says. "They felt they would need more space because that location was so successful. The location and their operation are a very good fit."