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HOUSTON-JMA Properties, a local investment group, has acquired Oakhollow Business Center for about $4 million from locally based developer Midway Cos.

The single-story, 87,976-sf office/warehouse and distribution building is located at 9715 and 9745 Bent Oak Dr. in the northwest submarket at the intersection of Beltway 8 and US Highway 290. It is 100% leased to local companies Comfort Systems and Lennox International, both of which are involved in producing and distributing air conditioners and air conditioning parts.

“The building is located in the heart of the dominant industrial market in Houston,” says Ralph Tullier, a vice president with Trammell Crow Co.’s Houston office. “It’s close to the major highways, which is what tenants want.”

In particular, JMA Properties was looking for an asset that would offer stability without being too management intensive, says Tullier, who represented Midway Cos. along with TCC principal Rusty Tamlyn. The buyer, represented internally by Jack Area and Bill Janis, is a very quiet investor. “Most people have never heard of them,” Tullier says. “They own just a handful of assets in Houston.”

Tullier tells GlobeSt.com that the five-year-old asset was on the market three months and garnered five offers. “Oakhollow is the kind of building that investors like to buy because of its tenants and the fact that it’s a newer industrial building,” he says. According to Tullier, assets similar to Oakhollow are trading at cap rates ranging from 8.5% to 9.5%.

According to Grubb & Ellis Co.’s third-quarter industrial report, industrial assets are in Houston are very much in demand. Cap rates have fallen by 100 basis points to an average of 8.5% for industrial space.

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