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PLANO, TX-In an off-market deal, Vintage Interests LP has taken control of a pair of flex service centers, totaling 131,882 sf, in North Plano. The seller’s extra incentive to part with the properties is the agreement to continue to lease and manage them.

“That was one of the attractions,” says Ernest O. Perry III, managing partner of Dallas-based Vintage. He tells GlobeSt.com that Thompson Realty Corp. had Jupiter Tech Center at 1000 Jupiter Rd. and the three-building Summit Service Center at 1825-65 Summit Dr. at 100% and 85% occupancies, respectively, when he took their deeds.

Perry says the anticipated hold is three to four years. Keeping Thompson in place also works to the buyer’s advantage because the assets “are fairly management intensive,” he explains. “They’ve got 26 tenants and they have a good relationship with them.”

The 36,395-sf Jupiter Tech Center, built in 2001 on 3.4 acres, has six tenants. The 95,187-sf Summit Service Center, a late 1990s product on 6.4 acres, has 20 tenants. And, there’s a 50% lease roll in the next three years. “I feel like we’re buying into below-market rents that we can capitalize on,” Perry says. He adds that the assets “inherited a lot of leases made after the tech bust,” which will roll to market rate as they come due. Jupiter Tech’s quote is $10 per sf, triple net, and Summit’s space is $10 per sf, industrial gross or roughly $8 per sf on a triple net basis.

Perry says both assets cater to a niche: the largest tenant is 9,000 sf. “There aren’t many places for them to go,” he says. “We think it serves a good niche.”

The all-cash deal closed within 90 days during which time the duo picked up 11% occupancy. Jupiter Tech is assessed at $2.4 million; Summit Service Center, $4.1 million. “We bought it at about a 30% discount to replacement cost,” Perry says, with no upgrades needed and upside in the vacancy.

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