$247M Industrial Purchase In Dallas Shows The Asset Class Is Still Fire
Despite a commercial real estate slowdown in the wake of the coronavirus pandemic, the industrial asset class remains prime real estate. The latest indication: a $247M new-build industrial deal closing in DFW this month.
A partnership between VEREIT Inc. and Korea Investment & Securities Co. — a firm advised by Ocean West Capital Partners — announced the purchase of a 2.3M SF distribution and warehouse facility at 9314 West Jefferson Blvd. in Dallas.
The partnership formed by the two entities has already acquired numerous single-tenant, investment grade industrial assets, with property valued at roughly $653.7M already in its growing portfolio. This is the seventh property purchased since the two firms started scooping up U.S. industrial buildings in May 2019.
The building's developer, NorthPoint Development, remains a joint venture partner, while CBRE National Partners oversaw the disposition of the asset.
"We are pleased to announce another successful acquisition with our partners at VEREIT and look forward to acquiring additional high-quality assets," Ocean West principal Russ Allegrette said in a statement.
VEREIT Chief Investment Officer Thomas Roberts credits the property's desirable location and the presence of a long-term, creditworthy tenant for making the warehouse a desirable asset.
Industrial has remained strong during the pandemic, and DFW leasing activity the last few months has been close to on par with past summers, particularly for large properties.