HOUSTON-Ivest Inc., a local owner of industrial properties, has purchased the one-million-sf Clay Hempstead Business Park for $7.1 million from Minneapolis-based Thrivent Financial.

“Ivest’s asset are very concentrated in the northwest,” says Jeff Barbles, an investment broker with Marcus & Millichap’s Houston office, “and they were looking to buy larger assets in the same area.” He and Marcus & Millichap’s Rob Chandler represented Ivest in the purchase of the class B holding, a three-building complex on 12.1 acres at 8700 to 8758 Clay Rd. Seller Thrivent Financial, the institutional fund for the Lutheran Church, had Brian Gammill of Transwestern Commercial Services Inc. negotiating its terms.

Barbles tells GlobeSt.com that Ivest’s current properties are suited for smaller tenants, which means the company has not been able to accommodate tenants as they grow. “A lot of their tenant base had outgrown their existing buildings,” he says. “They wanted to upgrade and diversify to larger spaces.”

According to Barbles, the business park size is not the only thing that makes the acquisition unusual for Ivest. “Usually they buy buildings that are 20% vacant and then redo them,” he says. The firm is a long-term holder that’s owned most of its portfolio at least 10 years.

In contrast, Clay Hempstead Business Park is 82% occupied. “The park is in really good shape and Ivest plans to enter into a lease-up plan,” he says of the park, built in the late 1970s. “They’ve already got some tenants in their current buildings who are ready to move.” Ivest will lease and manage the asset, which is on the market for 30 cents per sf to 40 cents per sf.

According to Barbles, Ivest sold development land in the Northeast and teamed the 1031 Exchange gain with an assumption of an existing mortgage with Thrivent, which took over the asset in June by buying out the park’s minority partner. The local limited partnership acquired Clay Hempstead Business Park in March 2003.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.