This was a unique opportunity to acquire a critical mass of functional industrial buildings in a fast-growing market at a below replacement cost basis. The Brookhollow Industrial Portfolio is a 390,691-square-foot, shallow-bay industrial portfolio located in the West Brookhollow submarket in Dallas, Texas. It consists of 2 properties and is currently 100% leased to 9 tenants.
Investment highlights:
- Strong current cash flow
- Brookhollow industrial market has limited availability – 2.1% vacancy rate.
- The Property has strong historical occupancy – 98.5% over last 20 years / 97.3% over last 10 years.
- The proposed purchase price is estimated to be a 44% discount to today’s replacement cost.
- Our partner has underwritten an exit price that is still significant discount to today’s replacement.
- Despite the portfolio being 100% leased, there is significant upside potential through marking rents to market.
- In-place rates are currently 12.2% below market.
- The surrounding area, specifically in the Design District, is experiencing significant redevelopment – warehouse conversions to showroom retail and new multifamily projects.