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

HOUSTON-A South Texas partnership has taken control of Central City Industrial Park, formerly a Hughes Tool Co. manufacturing plant. The new owner’s plan is to get the one-million-sf asset’s 86% occupancy to full.

“This is 2.5 miles from the CBD and 2.5 miles from the port of Houston,” says John Pogue, president of Pelec Development Ltd. “This is a good, functioning industrial park that is well-situated.” In keeping with the state’s non-disclosure practice, he’s not saying what he spent to acquire the 75-acre complex at 5301 Polk Ave. in the far eastern submarket. But, similar properties have ended up on the market for $9 per sf to $13 per sf.

The factory was built in the 1950s by the Howard Hughes-owned Hughes Tool Co. to manufacture diamond drill bits. The plant was passed to Baker Hughes Inc. in the late 1980s after the high-profile merger. At that time, Baker Hughes put $20 million into a total rehabilitation, turning the single manufacturing plant into a multi-tenant industrial complex.

Baker Hughes sold it to Pelec Development, a partnership between Pogue and John Frantz. The new owner is renaming the property to Pelec Central City Industrial Park. “Some of the older buildings have been demolished, with others built on top of them,” Pogue explains.

Pogue tells GlobeSt.com that leases begin rolling in 2008 with some stretching until 2012. The new owners will be quoting 26 cents per sf, triple net for the open space.

Conrad Bernard with Boyd Commercial LLC in Houston represented Baker Hughes and Dan Zoch, also with Boyd, handled the buy side. The Boyd team will handle leasing. Rob LaRue with locally based Live Oak Capital Ltd. arranged acquisition financing through Legg Mason Real Estate Investors Inc.’s Los Angeles office.

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