Pure Industrial Takes 2 in Texas
- Apr 06, 2017
Pure Industrial Real Estate Trust is all over Texas. The Vancouver, B.C.-based REIT has wrapped up the purchases of the 1 million-square-foot Cedar Port Distribution Centre in suburban Houston, and 16 acres of land in San Antonio. Pure shelled out an aggregate $66.3 million on the transactions.
The Lone Star State clearly holds a certain appeal for Pure. “We like Houston, Dallas and San Antonio for their strong industrial market fundamentals,” Charlie Deeks, vice president, investments with Pure Industrial Real Estate Trust, told Commercial Property Executive. “Houston specifically is one of the healthiest industrial markets in the U.S. with strong population growth and increased port activity.”
Using cash on hand and an operating line of credit, Pure paid $63.5 million for Cedar Port Distribution Centre, a two-building property occupying 55 acres in Baytown, roughly 30 miles east of Houston. The structures at 4762 and 4830 Borusan Road reached completion in 2017 and are 100 percent leased to Swedish furniture retailer Ikea.
In San Antonio, the 16 acres Pure snapped up provide development potential with a forecast yield of approximately 9 percent. The land, sited adjacent to an existing Pure property, carried a cash price tag of $3.8 million.
With the closing of the two purchases, Pure now has three assets in Texas, where the REIT is just getting started. “For future investments in the U.S, we are focusing on markets in Texas, Georgia and North Carolina,” Deeks said. Pure has already added to its presence in Georgia this year with the acquisition of an 800,000-square-foot distribution center in suburban Atlanta for $39.5 million in February.
Image courtesy of Pure Industrial Real Estate Trust