Basis Industrial Closes 1.1 MSF Buying Spree
Most of the assets are in the Lone Star State.
In a series of successive transactions, Basis Industrial has purchased office and industrial assets totaling 1.1 million square feet throughout Texas and Florida. Beach Point Capital Management provided acquisition financing, while Newmark facilitated the debt sourcing.
The industrial assets—Houston I, DFW II and DFW III—are in the Lone Star State. Basis acquired them from Birtcher Anderson & Davis and COFE Properties. Taurus Investment Holdings sold the office property, a 206,275-square-foot campus in St. Petersburg, Fla.
READ ALSO: Dallas Industrial Investment Sees Surge
The 14 industrial buildings total some 901,200 square feet. Plans call for capital improvements focused on roof and HVAC replacements, as well as drainage and landscape renovations, among others. Tenants include California Fruit Exchange, Francisco & Sons Auto, 1 Dust Group, as well as Ministerios Linaje Escogido and Liturgical Publications, to name a few.
A total of 12 facilities are in the Metroplex, scattered throughout Dallas, Haltom City, Texas, Irving, Addison, Farmers Branch, Carrollton and Fort Worth. The assets are, on average, some 15 miles from the Dallas Fort Worth International Airport, some of them being close to interstates 20, 35W, 35E and 635.
The other two industrial buildings, located in Houston, are roughly 18 miles on average from the Port of Houston and the William P. Hobby Airport. Interstates 69 and 610 are about 4 and 6 miles away, respectively, while Downtown Houston is some 13 miles northeast of the property pair.
Newmark Vice Chairman Stephen Bailey represented the seller of DFW III and Houston I—COFE Properties—and the seller of DFW II, Birtcher Anderson & Davis. Basis Industrial was self-represented by COO & Managing Partner Anthony Scavo.
Basis Industrial doesn’t wait and see
As of September, Basis owned more than 5 million square feet of industrial and self storage space and is expected to close on another 1 million square feet this year. The acquisition of DFW II and III brought the company’s Metroplex portfolio to more than 1 million square feet of shallow-bay, multi-tenant industrial space.
Scavo said, in prepared remarks, that Basis’ goal of growth and expansion is working while other companies are on the sidelines. Last year, the firm acquired and refinanced a six-asset, 1.3 million-square-foot portfolio for a combined total of $220 million. The deal included the purchase of four industrial properties in Florida and Texas.
Dallas-Fort Worth industrial sales soar
Year-to-date through July, investors purchased more than $2.4 billion in industrial assets throughout the Metroplex at a price per square foot of $146, above the national average of $135 per square foot, according to a report by CommercialEdge. The Bay Area was the only market to outshine Dallas-Fort Worth, with a total investment volume of $2.5 billion.
The average asking rents in the metro jumped 7.6 percentage points year-over-year, landing at $6.06 per square foot in July—below the national average of $8.15 per square foot—the same source shows. Dallas-Fort Worth’s vacancy rate stood at 7.1 percent during the same period, slightly above the national average of 6.4 percent.
Meanwhile, the Metroplex’s supply pipeline held more than 16.3 million square feet of under-construction industrial space in July, accounting for 1.7 percent of total stock, the report reveals. Only Phoenix’s pipeline surpassed Dallas-Fort Worth’s, with more than 36.9 million square feet underway.
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