Sealy & Co. Nabs 1.5 MSF Industrial Portfolio in Dallas

The 18 buildings are located in four prime submarkets.

By Keith Loria, Contributing Editor

Scott Sealy Jr., Sealy & Co.
Scott Sealy Jr., Sealy & Co.

DallasSealy & Co. has acquired an 18-building portfolio consisting of 1.48 million square feet of functional industrial space located in four prime industrial submarkets of Dallas. The assets were acquired as part of the Sealy Strategic Equity Partners LP portfolio.

“The industrial portfolio acquisition is a fitting addition to the current SSEP portfolio, providing functional properties and further tenant diversification,” Scott Sealy Jr., Sealy & Co.’s vice president of business development, said in a prepared release. “Sealy will continue to create value by executing a tailored investment strategy, rolling below market rents to market, and will hold or sell the properties opportunistically.”

According to a recent industrial market report published by Colliers, the Dallas industrial market continues to ride a rising tide of increasing rents and strong demand in the second quarter of 2016, propelling the area to the highest levels of construction in the nation. So far in 2016, over 2.9 million square feet of spec “big box” warehouses have been delivered, and these properties are 55 percent leased.

According to the release from Sealy & Co., the properties it acquired are located in prime infill locations with significant barriers to entry for new competitive product due to land constraints and rising land values, which represented an excellent opportunity for the company to acquire a critical mass of institutional quality property with significant leasing upside in a Tier 1 industrial market.

The portfolio is being acquired at a significant discount to replacement cost and has strong historical occupancy.

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