GlobeSt.com EXCLUSIVE: Weingarten Antes Up $13M for Industrial Project

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STAFFORD, TX-Weingarten Realty Trust has outmaneuvered 13 other would-be-buyers to acquire Freeport Business Center, a two-building, 251,200-sf industrial property in the southwest part of town. An industry source reports Weingarten has put up at least $13 million for the asset.

The twin buildings at 13259 and 13275 N. Promenade Blvd. were built six years ago on a spec basis, the only multi-tenant product of its type in the 200-acre Freeport Southwest Business Center, which is owned by Houston-based Midway Cos. “There was a lot of interest in this property,” says Rusty Tamlyn, director of capital markets group for Trammell Crow Co.’s Houston office. “It’s new product with great credit tenants. And, it offers Triple Freeport tax exemption.”

Tamlyn tells GlobeSt.com that the 14.6-acre Freeport Business Center received 14 offers during four months on the market. Potential buyers ranged from private REITs to pension fund advisers. “Weingarten was the highest offer,” he says, adding the REIT owns some nearby industrial property and wanted to buy more in the area.

Tamlyn partnered with Ralph Tullier to sell the 88%-leased Freeport Business Center for San Francisco-based Rreef, which partnered on the development with Midway Cos. The center’s largest tenant is Applera Corp., which occupies 50,028 sf until September 2009. Other tenants are Source 4 Inc., Gurwich Products, Fairfield Industries and Virgo Engineers Inc.

The average remaining term is 45.5 months with just over 10% of the tenancy rolling each year during the first five years, according to Tamlyn. “It’s appealing because it’s not very management intensive,” he says.

The average rental rate is $4.63 per sf. “There’s upside in leasing the balance of the space,” Tamlyn points out.