Philadelphia investor makes industrial buy in SW Houston
Exeter Property Group has expanded its Houston holdings with the purchase of a collection of fully occupied industrial buildings in southwest Houston.
The suburban Philadelphia-based company has acquired the Century Oaks Business Park at 10621-10641 South Sam Houston Parkway from longtime owner Bearden Investments. The business park consists of six buildings totaling 245,860 square feet on 19.1 acres.
The deal closed in 45 days, according to Boyd Commercial/CORFAC International, which marketed the property for the local seller.
“There are more buyers than sellers right now for sure,” said Clay Peeples with Boyd Commercial. “There’s pools of money, large investors looking for quality projects.”
Other recent additions to Exeter’s Houston portfolio include Bammel Business Park, Business Center at Park 10, Legacy Park, and Brittmore Tanner Distribution Center. Company officials could not be reached for comment.
Daniel Miller and David Moore with Rubicon Representation represented the buyer in the latest deal, while Peeples and Bo Pettit of Boyd Commercial represented the seller.
The bulk of Century Oaks Business Park was built in 2013, with a sixth building added in 2015. Tenants include XPO Last Mile, Sunny Rock, Edvivi, Wetsounds, Emser Tile, Holliday Process Solutions, Superior Pool and others. The property borders a FedEx shipping center on two sides.
Terms were not disclosed, but the Harris County Appraisal District places the property’s value at $23.6 million. It has escalated by 34 percent over the past three years, according to HCAD.
The deal signals continued strength in Houston’s industrial market, which has hovered around 95 percent occupancy in recent years. Area buildings have remained relatively full even as 56 million square feet of industrial space has been built across the greater Houston region in the last five years, according to CBRE. About 10 percent of the new space is in the southwest submarket, where more than 1 million square feet is under construction.
Recently built projects in southwest Houston that are leased up are also drawing investors. Cabot Properties purchased the first phase of Hines’ Beltway Southwest Business Park, a two-building, 350,000-square-foot project at Beltway 8 and the Fort Bend Tollway, last year.
Rents in the southwest submarket are among the highest in the Houston area at 70 cents a month per square foot, according to CBRE. That compares with 62 cents for the overall market average.