New Area Buyer Snags 119,212-SF Industrial

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

HOUSTON-A new investor to the area has beat out nine other offers to purchase the 119,212-sf Northwest Place One distribution center. Similar properties in the northwest submarket have traded for $45 per sf to $50 per sf.

The seller of record, CH–Northwest Place One Ltd. of New York City, had owned 7250 W 43rd St. since its development by Trammell Crow Co. in 1997. Rusty Tamlyn, principal and managing director with TCC’s Houston office says the great capital market prompted the seller to put the 100%-occupied building on the market.

“The buyer is new to Houston. He’s an attorney from the Miami area,” Tamlyn tells GlobeSt.com. “We’re starting to see more people from there coming here to invest. Insurance rates are higher there and the Florida market has been picked over. This was a good opportunity for him to buy a good product in this market at a reasonable price.” Tamlyn and TCC colleague Ralph Tullier represented the seller.

Tamlyn says the self-represented buyer, operating as Northwest Warehouse LLC, actively is looking for more properties in the area. TCC will continue to lease Northwest Place One.

Situated on close to six acres, Northwest Place One’s tenant roster consists of DXP Enterprises Inc., Office Pavilion Inc. and Quality Connector Systems. The average net rental rate is $3.45 per sf annually. According to Tamlyn, the next lease expiration isn’t until November 2008.

Northwest Place One has a sister facility: the 210,432-sf Northwest Place Distribution Center II, which is for sale, but by a different owner. The building at 7170 W. 43rd St. also is fully occupied.