A New York player seized an opportunity to acquire a fully-leased industrial portfolio in North Texas, where demand is strong but starting to cool, following a few scorching years.
DRA Advisors has purchased an eight-building industrial property in Plano, totaling more than 846,000 square feet, the Dallas Business Journal reported. Terms of the deal were not disclosed, although New York Life provided a $79 million loan to help finance the acquisition. The loan comes to a little over $93 per square foot.
New York-based Link Logistics sold the portfolio, according to Commercial Property Executive. Cushman & Wakefield brokers facilitated the deal.
The buildings, most of which are on East Plano Parkway, range from 53,000 to 210,000 square feet and were constructed between 1997 and 2000. The buildings are 100 percent leased by 15 tenants, including Samsung, Quiktrip Facility Support, electronics manufacturers Virtex and Creation Technologies, and computer hardware manufacturer Unicom Engineering. The average lease term is 10 years.
Earlier this year, DRA Advisors closed on a nearly $2.3 billion fund aimed at value-add investments in the industrial, retail, multifamily, office and life sciences sectors. The company owns 423 industrial assets totaling more than 60 million square feet, comprising a substantial portion of its real estate portfolio.
Dallas-Fort Worth’s industrial market exploded after the pandemic sparked an increase of e-commerce. Through April of this year, investors had spent more than $1 billion on industrial acquisitions in DFW, ranking third in the nation behind Los Angeles and the San Francisco Bay Area, according to a CommercialEdge report. The region’s industrial vacancy in April stood at 3.9 percent, down from the national average of 5.2 percent.
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While industrial demand is strong in DFW, overzealous developers have led to some oversupply. By the end of last year, the region had nearly 40 million square feet of warehouse space under construction, and over 14 million square feet of industrial space had flooded North Texas’ sublease market.
—Quinn Donoghue