Transwestern Sells 477 KSF Houston Facility
The buyer financed the acquisition with a $19 million life company loan from Principal.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Transwestern Investment Group has sold Southwest Commerce Center, a newly built, 477,355-square-foot industrial facility outside of Houston. The buyer was Albuquerque, N.M.-based Carlo Inc., according to documents filed with the Fort Bend County recorder.
The buyer received $19 million in life company acquisition financing from Principal, recorded documents show. The loan matures in 2029.
Located on 29 acres at 611 S. Cravens Road in Missouri City, Texas, the property opened in 2019 and was fully leased at the time of the sale. Transwestern Real Estate Services had overseen the building’s leasing operations during and following the development process, securing the three tenants — Awesung, ADBA Group, and Asia Logistics.
The cross-dock structure features 32-foot clear heights, ESFR sprinklers, and outside trailer storage. According to a Transwestern leasing brochure dating back to when the property was under construction, the building also has 129 loading docks, four drive-in doors, and a 50% tax abatement for the five years following delivery. Outside, the property has 130- to 180-foot truck courts.
Houston’s Industrial Launch
Houston’s industrial market is performing admirably well, even while it’s vacancy — at 6.5% in the first quarter, according to a report from Colliers — is far higher than severely inventory-constrained, high-demand markets like the Inland Empire or Northern New Jersey. Even so, the report noted that asking rents for triple-net leases were on the rise, averaging $8.08 per square foot in the first quarter, compared to $7.49 a year before.
Investment volume has taken a hit, however. Transwestern’s first-quarter market report showed transactions totaling $302 million in the first three months of 2022, a striking difference from the $561 million closed in the first quarter last year. That said, pricing is on the rise, averaging $99 per square foot this past quarter, already a $4 increase compared to the end of 2021.
Related Questions
What are the benefits of investing in a Transwestern industrial property?
Investing in a Transwestern industrial property can offer a number of benefits. Transwestern is a leading commercial real estate firm that specializes in industrial properties, so you can be sure that you are getting a quality asset. Additionally, Transwestern has a strong track record of success in the industrial sector, so you can be confident that your investment will be well managed. Furthermore, Transwestern offers a variety of loan products to help you finance your industrial property, including fix-and-flip loans, bridge loans, and more. With these loan products, you can get the capital you need to purchase and upgrade your industrial property, allowing you to maximize your return on investment.
What types of financing options are available for Transwestern industrial properties?
Transwestern industrial properties can benefit from Commercial Real Estate Loans' extensive portfolio of full capital stack financial solutions for the acquisition and recapitalization of industrial properties. Our permanent financing options include CMBS, Life Company, Bank Loans, and Small Balance Loans. Loans start at just $1,000,000 with amortizations as long as 30 years and leverage up to 75%.
What are the advantages of investing in a 477 KSF Houston facility?
Investing in a 477 KSF Houston facility can be a great way to expand your self-storage business. The SBA 504 loan program offers significantly lower interest rates (around 5%) than conventional SBA 7(a) loans (typically between 7.5 and 11%), making them less expensive over the long run. Additionally, SBA 504 loans carry less fees than 7(a) loans. This makes them a great option for financing the purchase, improvement and construction of commercial real estate, and the purchase of long-term equipment (defined as equipment that will be in use for at least 10 years).
If you need a working capital loan, you may be better suited toward the 7(a) loan program, or, alternatively, another SBA loan, such as the SBA express loan, or even an SBA microloan.
We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!
What are the risks associated with investing in a Transwestern industrial property?
Investing in a Transwestern industrial property carries the same risks as any other industrial property investment. These include the potential for tenant turnover, market fluctuations, and the need for capital improvements. Additionally, Transwestern industrial properties may be subject to the same risks as other industrial properties, such as the need for environmental remediation, zoning changes, and changes in local infrastructure.
It is important to do your due diligence when investing in any industrial property, including those managed by Transwestern. You should research the local market, the property's condition, and the tenant's creditworthiness. Additionally, you should consider the potential for capital improvements and the availability of financing. You can learn more about commercial real estate financing options here.
What are the current market trends for industrial properties in Houston?
Houston is one of the top markets for industrial real estate in the U.S., with a vacancy rate of 5.2% and a total of over 5 million square feet of industrial space under construction. According to CBRE's Q1 2021 report, the Houston industrial market saw a total of 4.2 million square feet of net absorption in 2020, with the majority of that absorption occurring in the fourth quarter. The report also notes that the market is expected to remain strong in 2021, with a projected total of 5.3 million square feet of net absorption. Additionally, the report states that the average asking rent for industrial space in Houston is currently $7.50 per square foot, with the highest rents being seen in the Northwest submarket.
What are the tax implications of investing in a Transwestern industrial property?
The tax implications of investing in a Transwestern industrial property will depend on the specific details of the investment. Generally, any wages paid to employees or independent contractors, as well as professional fees, can be deducted on Schedule E of the tax return. Additionally, any capital gains from the sale of the property may be subject to taxation. It is important to work with a qualified tax professional to ensure that you are taking advantage of all available deductions and tax credits.
For more information, please see the following resources: