(Read more on the industrial market.)

AUSTIN-Vintage Interests LP has just closed on the 201,594-sf Pecan Business Park, pushing its investments in the state to $85 million in two years. The Dallas-based investment group has acquired the six-building park in the southeastern submarket from a local partnership.

Assets similar to Pecan Business Park at 3913 Todd Lane have sold for $60 per sf. Rusty Perry, founder and managing partner of Vintage, says the 24-year-old buildings, sold by Pecan Business Park Ltd., fit well into the company’s investment parameters. Pecan Business Park, situated on 7.8 acres, was 90% occupied at sale time.

“One of the things we liked about this is while you’re starting to see larger tenant industrial buildings being developed that cater to larger users, there’s really no new construction out there that accommodates smaller tenants like this,” Perry tells GlobeSt.com. “The market’s pretty tight. We feel that it’s creating upward pressure on rental rates.”

The submarket’s vacancy rate is 7.3% in its 10.5 million sf of industrial space. The average rent for flex space is $10.14 per sf.

Perry says 60% of the leases in Pecan Business Park will roll within three years. He says current rents are 25% below market.

Pecan Business Park was listed by Aquila Commercial LLC of Austin, but it was Transwestern that brought it to Vintage’s attention. “Aquila was marketing this quietly, but when Transwestern got wind of it they came to us, knowing it’s the kind of property we like,” he says.

For two years, Vintage’s main emphasis has been Dallas and Austin. Perry says $25 million has been spent in Austin, which he would like to double by the end of the year. In the meantime, he’s looking elsewhere for deals in the $3-million to $15-million range.

“We’re starting to look at opportunities in Houston and are considering San Antonio,” Perry says. “We have a couple more closings to get behind us in Dallas and Austin and then we’ll be starting to spend some time in Houston.”

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