Cabot Properties Closes on Houston Industrial Portfolio
- Oct 24, 2014
Cabot Properties Inc., a Boston-based private equity REIT, has just closed on a three-building industrial portfolio in Houston. The announcement was made through HFF, which brokered the transaction on behalf of the seller, East Group Properties. Totaling 243,100 square feet, the portfolio consists of Clay Campbell I and II and the Kirby Business Center. At the time of the transaction, the assets were fully leased.
Clay-Campbell I and II are located at 4300-4320 and 4444-4456 Campbell Road in northwest Houston, one of the city’s most thriving industrial submarkets. As we have reported last week, the northwest region has about 133.4 million square feet of developed industrial space, of which only 5.5 million square feet are vacant. The industrial buildings were completed in 1982 and encompass about 117,000 square feet.
Kirby Business Center is located at 9350-9370 South Point Drive, south of NRG Stadium and the Texas Medical Center. Due to its proximity to Loop 610, the asset allows easy access to all major freeways. The south industrial market has also been prospering, according to CBRE research data. For the third quarter of 2014, south Houston registered a 3.3 percent vacancy rate.
“Because of their tremendous functionality, these assets have enjoyed a strong historical performance under EastGroup’s ownership and generated significant interest from both institutional and private capital investors,” said HFF Director Trent Agnew. “Like EastGroup, Cabot continues to be bullish on Houston’s long-term prospects, and these assets are a great complement to their current holdings and give them exposure to the market within their latest fund.”
Image Courtesy of EastGroup via Official Website