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HOUSTON-The five-acre Greenbranch Business Park in North Houston has sold for close to the asking price of $1.6 million to a Houston-based investor in a below-market deal forged by a 9% occupancy.

Investor West 10 Development bought a 71,126-sf industrial park at 15955 W. Hardy Rd. near George Bush Intercontinental Airport. The business park, developed in 1980, was only 9% occupied at sale time, Jeffrey Barbles with the Houston office of Marcus & Millichap tells GlobeSt.com.

Barbles says the occupancy went south when one tenant went bankrupt and two others moved. The sellers, Greenbranch Place Ltd. of Houston, decided it was a good time to dispose of the asset rather than work to re-lease it. The sellers acquired the park in 1994. It carries a $1.8-million assessment by the Harris County Appraisal District and sits in a 40-million-sf industrial submarket, where the overall vacancy is about 10%, according to CB Richard Ellis Inc.’s research team in Houston.

Barbles says three weeks of marketing delivered four offers before a contract was placed by West 10 Development. With the deal done, the buyer plans to significantly upgrade the property, inside and outside. Barbles isn’t sure how much will be spent, but he estimates the holding needs $400,000 and $500,000 of capital improvements.

The park contains three warehouses: 16,000 sf, 29,000 sf and 25,226 sf. Each building is partitioned into about eight spaces. Barbles says the new owners might increase the number of tenant spaces.

Barbles says the owner possibly has a tenant lined up for the 29,000-sf building. Coleene DeHass of Guardian Management in Houston holds the leasing assignment.

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