Colony Industrial Nabs $52M San Antonio Asset
- Apr 09, 2018
Colony Industrial, the industrial platform of global real estate firm Colony NorthStar, has acquired Enterprise Industrial Park, a two building, Class A light industrial complex in San Antonio, Texas, for $52.1 million.
“San Antonio has been on our radar as a target market due to population growth, job growth, demographics and the lack of good quality, light industrial product, which is our focus,” Michael P. Wenaas, Colony Industrial’s managing director and Head of Investments, told Commercial Property Executive. “We generally target smaller properties that are well-located, multi-tenanted, and high quality…this project checked a lot of boxes for us.”
Located at 17745 Lookout Road, the duo of buildings total 639,797 square feet and serve as the home of a roster of nine high-quality tenants with a weighted average lease term remaining of 5.3 years. At the time of the deal, the property was 88 percent leased.
Some 80,000 square feet is still available, and that space can be divided into two 40,000 square-foot spaces, which many prospective tenants look for in an asset. The site already has several prospects for the remaining space.
“San Antonio is somewhat underserved with light industrial product,” Wenaas said. “The way e-commerce is growing, we believe there is a lack of product to serve San Antonio’s population base. Most of the population growth in San Antonio is in the North and Northeast submarkets and these two buildings will serve those markets. This fits right in the middle of the growth curve of San Antonio.”
Originally constructed in 2015, Enterprise Industrial Park is situated within one mile of a full-diamond interchange of Interstate 35, the city’s major North-South interstate highway.
Expanding its Footprint
Andrew C. Goodman, Colony Industrial’s CFO, concurred that the company was excited to expand its portfolio of light industrial warehouse properties in this new high-growth market.
“We seek assets that are well located, close to major metros,” he told CPE. “The markets that we are in are targeted markets with strong fundamentals—population growth, limited supply and strong demographics.”
CBRE’s Randy Baird, Jonathan Bryan, and Ryan Thornton brokered the deal.
It’s been a busy month in the industrial sector. CT Realty recently sold four industrial buildings in Southern California for $31 million; BLT Enterprises acquired an industrial facility in San Diego’s submarket of Carlsbad, Calif., for $38.3 million; and AIV Inc.—a subsidiary of STAG Industrial Inc.—has acquired Brookhollow West Business Park, two fully leased, Class A industrial buildings in northwest Houston, totaling 232,950 square feet.
Image courtesy of Colony Industrial