Sealy & Co. Boosts Houston Presence With Off-Market Deal
- Sep 13, 2019
Sealy & Co. has expanded its footprint in metropolitan Houston, one of its target markets, by nearly half-a-million square feet with the purchase of Waller Distribution Center in Waller, Texas. The company acquired the 479,800-square-foot industrial asset in an off-market transaction on behalf of Sealy Industrial Partners LP.
According to Harris County records, Broad-Ocean Motor previously owned the property. Sealy acquired the asset at a discount-to-replacement cost.
READ ALSO: Florida’s Largest Industrial Deal
Waller Distribution Center opened in 2017 on nearly 45 acres at 18140 Kickapoo Road. The distribution warehouse sits 40 miles outside downtown Houston in the Northwest area, the largest industrial submarket in the Houston MSA. And as noted in the marketing memo, surrounding residential and retail activity places the facility firmly in the path of growth.
A prime location is just one of the important boxes Waller Distribution Center ticks for Sealy. The company was also taken with the property’s state-of-the-art features and stable occupancy via the existing tenant’s commitment of several years to 35 percent of the space. In addition to stabilizing Waller Distribution Center, Sealy plans to enhance the facility with the extension of the truck court to increase functionality, Scott Sealy Jr., chief investment officer of Sealy & Co., told Commercial Property Executive.
Sealy represented itself in the transaction, with Sealy Jr., Jason Gandy and Tom Herter of the company’s investment services team spearheading the deal. CBRE’s Tom Lynch and Mark Redlingshafer represented the seller.
Sealy had a robust year of transactions in 2018, completing $390 million in acquisitions and dispositions totaling approximately 7 million square feet of primarily industrial real estate assets, and 2019 is proving to be active as well. “We are currently around $122 million totaling 2.1 million square feet with multiple assets currently under contract and a robust pipeline of opportunities,” Sealy Jr. said.
The company’s lengthy list of transactions this year includes the purchase of the 128,900-square-foot property at 2465 Joe Field Road in Dallas, an industrial production and warehouse facility that is home to Luxottica, the largest eyewear manufacturer in the world. Sealy also continued to expand its presence in metropolitan Memphis with the acquisition of 7755 Polk Lane, a 1 million-square-foot distribution facility in Olive Branch, Miss.