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

HOUSTON-Lincoln Property Co. has acquired a 651,882-sf portfolio from Sealy & Co. Inc. and GE Capital Real Estate. The package, weighted with flex industrial space in the Woodlands, was 85% leased at sale time.

The 11-building portfolio, developed in the late 1970s and early 1980s, drew a dozen offers in a one-month marketing. “It was a very competitive situation, especially on the final round of bidding,” Randy Baird, executive vice president for CB Richard Ellis in Dallas, tells GlobeSt.com. He and CBRE partners Jack Fraker and John Robinson marketed the package for Sealy, which has headquarters locations in Dallas and Shreveport, LA, and its Stamford, CT-based equity partner.

The Dallas-based buyer got a 215,000-sf warehouse at 4023 Westhollow Parkway and the higher-end flex space as the balance. The Woodlands list includes a 65,387-sf building at 2319 Timberloch Place and 52,595-sf and 72,091-sf structures at 2407 and 2408 Timberloch Place. The other Woodlands properties are a 61,321-sf building at 9391 Grogans Mill Rd. and 185,488-sf structure at 401 S. Trade Center Parkway.

Local sources say the going trade in Southwest Houston is $30 per sf to $40 per sf for distribution buildings. The Woodlands, though, is a different story and product type so they say it’s possible that price could have doubled with the higher finish and location shift.

Baird, mum about the price from the top bidder, says the sale “exceeded our expectations.” The swollen ranks of would-be buyers included institutions, private equity and REITs, he says. “What we found is there is a very high level of interest in the Woodlands,” he explains. “The buyer community was very educated on the dynamics of the Woodlands market. And, the overall pricing indicates the buyer’s appreciation of those dynamics.”

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