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HOUSTON-A South Texas developer has sold its one-year-old, 192,420-sf Air Center Business Park to a Dallas-based investment fund. Financial details of the sale to Cobalt Capital Partners LP were kept confidential, but similar flex and industrial assets have traded in the neighborhood of $65 per sf.

“This project was 65% leased and they looked at recapitalizing versus selling. They decided to sell because the capital market is very active and they got a great price,” explains Rusty Tamlyn, senior managing director for Holliday Fenoglio Fowler LP’s Houston office, who represented the seller, Cypressbrook Co. of the Woodlands. Tamlyn says Cypressbrook will continue to lease the complex, which is situated on 11 acres at 1704 Rankin Rd. and 16680 and 16684 Air Center Blvd. in the Central Green Business Park.

Tamlyn tells GlobeSt.com that Cobalt Capital beat out seven other offers because it offered the best price for the asset and was willing to keep Cypressbrook in place to lease it. “I’ve closed with Cobalt in the past and know they’re a qualified buyer,” Tamlyn says. “They had a quick 30-day inspection, and a 15-day close. It all went very smoothly.” He adds Cobalt Capital used equity from its $410-million fund to purchase the asset.

Tamlyn points out that the asset offers the new owner some positive upside because of the 35% vacancy. “They’ll get more out of this by getting the balance of this leased rather than it being fully stabilized,” Tamlyn observes. “This submarket has a lot of demand for this type of space.”

Air Center Business Park’s tenants include Ziebel US, House of Forgings Inc. and Array Holdings Inc. HFF associate director Michael Parker worked with Tamlyn on behalf of the seller.

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