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

DALLAS-Staying a course to spend $100 million by year’s end in key markets, BH Properties LLC has deposited the first round of a $40-million Texas allocation into a $17-million trio of buys. And, it’s holding purchase contracts for another 800,000 sf of industrial and retail space in the state.

“We’re very aggressive. We’re deal hungry,” Steve Jaffe, BH Properties’ executive vice president and general counsel, tells GlobeSt.com. “We’ve identified Texas as a key market for us.” The Los Angeles-based group is deploying capital from US investors into value-add deals in the $2-million to $25-million range.

The just-bought Texas properties are a 375,000-sf, class A warehouse at 1401 Pullman Dr. in the Vista del Sol Industrial Park in El Paso; 209,000-sf industrial asset at 2801 Galveston Ave. in McAllen; and 55,552-sf former Kmart building at 5222 Wesley St. in Greenville. Jaffe says the spending spree also extends into Arizona, the Carolinas, Florida, Georgia, Louisiana and Utah, but it’s taking a bye on California buys for now.

Scott Henry, BH Properties’ North Texas-based regional acquisitions director, says the El Paso property is 67% leased and the other two are vacant. “We feel good about the markets,” he says. “The upside is the vacancy. We’re really willing to take the leasing risk.”

The Greenville building, positioned on 6.2 acres, was bought from a local seller, Greentex Properties LLC, which was represented by Terry Driggers of Century 21′s Patterson Agency. Henry says it will be retooled and multi-tenanted.

The El Paso Property, sitting on 24.32 acres, is a four-tenant building that, like the others, had done a run on the market. Seller of record El Paso SD Ltd. had the asset listed locally through Adin Brown of Sonny Brown Associates.

As for the McAllen piece, it’s a strong likelihood that the 11.4-acre holding will change from industrial to retail before BH Properties closes out the hold, according to Jaffe. The property is across the street from the Indianapolis-based Simon Property Group’s proposed 600,000-sf regional mall and beside the city’s convention center. “Right now, we’d be jumping the market,” he says about the land’s future direction, “but that’s the end game.”

Wayne Troxler of Guilford Realty Group and David Allex of Allex & Associates represented the McAllen seller, VF Jenswear LP, which will vacate the building by month’s end. Last year, BH Properties bought VF Jenswear’s 112,000-sf building in El Paso, which it still occupies.

The triple play boosts the Texas portfolio to 1.5 million sf. The value-add buyer’s niche is “a willingness to buy that stuff that we know will take a little bit of time to generate money,” Jaffe explains, adding the group isn’t opposed to investing as much as two years into the wait. “We reposition assets. We’re investing heavily in the Texas market. And, we’ve got more money to spend.”

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?


© 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.


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 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


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.