(To read more on the industrial market, click here.)

HOUSTON-A collection of New York-based Fortune 100 companies has sold two flex buildings, totaling 155,933 sf, to a Los Angeles investment group. The buildings, situated about seven miles apart, were offered as a package deal because of their debt structure.

“It was two properties that were cross-collateralized,” explains Rob Chandler, senior associate with NAI Houston. “There was a debt component applied to both buildings, the same mortgage, but a conduit loan. They had to be purchased together.” The just-sold package consists of the 70,359-sf Brookhollow West Service Center at 10050 W. Gulf Bank Rd. and 80,576-sf Northwest Tech Center at 5201 Lanfield Rd.

Brookhollow West, built in 1976 on 3.14 acres, is fully leased while Northwest Tech, developed a year later on 6.2 acres, is 70% leased, says Chandler, who teamed with NAI Houston senior associate Jeff Barbles to represent the seller, Northwest Tech LLC. The buyer, Beltway Feeder LLC, was represented by local broker Joe MacDougal.

The sale price wasn’t available, but Chandler says comparable stabilized properties in the area have sold slightly above an 8% cap rate. Northwest Tech is appraised at $3.8 million; Brookhollow, $2.3 million.

Chandler says that the portfolio attracted 12 offers. “This went under contract once then fell out of contract,” he tells GlobeSt.com. “The group that bought stepped in late in the game, but was able to give the sellers a high degree of confidence about its ability to close.”

The broker says the buyer will focus on stabilizing Northwest Tech. “I think they’ll continue the lease-up process on that,” he adds. “They’re bullish on the activity in the market and I suspect they’ll hold onto both buildings for awhile as a long-term investment.”

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