Ares REIT Plans To Close On 2 Houston Properties As Part Of Texas Spending Spree
The company is buying Bayport 146 for $49.5M. The 455K SF property at 5803 Old Highway 146 is near Galveston Bay.
It also will buy a 192K SF property on Brittmore Road for $22M, with an expected first-quarter 2023 closing date, both according to a new Securities and Exchange Commission filing.
The company didn't provide seller information.
Ares also plans to close on a San Antonio property, the 490K SF Connection Park, in 2023. It will pay $48.5M for that property
Later this year, the company is expected to buy more properties in Florida, Indiana and Illinois. Ares reported about $584M in acquisitions to the SEC over the last month, including properties in Chicago and Florida.
"We are off to a strong start in 2022 with $263 million of new loans closed in the first quarter and $123 million closed thus far in the second quarter with more than $200 million of additional loans in the closing process,” Ares CEO Bryan Donohoe said in a February earnings release.
Donohoe said in a call with analysts the company could slow its pace in the coming months, however.
"We had record transaction volume as an industry last year. I think you'd be hard-pressed to say that will continue this year, just the denominator has to shift downward to a degree," he said. "And I think people will be at least a little more pensive on their investments notwithstanding capital flows."