Privately Held Real Estate Investment Firm and Houston-Based Real Estate Owner-Operator Purchase Three-Building, 526,753-Square-Foot Light Industrial Portfolio in Houston, Texas
SAN FRANCISCO (February 23, 2017) – Roxborough Fund I, L.P. an affiliate of San Francisco-based real estate investment firm The Roxborough Group, LLC, in partnership with Triten Real Estate Partners, LLC (“TREP”), a Houston-based operating and development firm, completed the off-market acquisition of a three-property light industrial portfolio located in Houston, Texas. The 97 percent leased, 526,753-square-foot portfolio consists of Market Street Distribution Center located in the Eastside submarket, Westchase Business Center located in the Westchase submarket and Plaza Del Oro, which is located just south of the Texas Medical Center (TMC).
The portfolio benefits from its strong infill locations, functional product and lack of direct exposure to the energy industry. The portfolio’s submarkets are well occupied and have seen rising rents despite the market disruption in Houston. Eastside demand is driven by the booming petrochemical industry, which benefits from low energy prices and is expanding via multibillion dollar projects along the Gulf Coast. Westchase’s high-end infill location continues to draw steady demand and the TMC’s rapid expansion and development, bolstered by Houston’s world-leading healthcare sector, is driving demand and reducing competitive supply.
“Each of these well-located assets serve demand that is insulated from the volatility in the energy markets,” said Dan Kodner, vice president of The Roxborough Group. “Institutional capital, however, has largely turned its attention away from broader Houston, which created an opportunity to acquire these properties at highly attractive pricing. Houston’s increasingly diverse employment base and rapidly growing population have sustained its economy throughout the energy downturn, setting the stage for a strong rebound as the energy sector recovers over the coming years. We are excited to be partnering with TREP, a first class operating partner, to capture strong cash flow and create value through focused, hands-on management and leasing.”
The portfolio marks the first acquisition for the partners. TREP has established a strong local presence in the Houston market with this acquisition bringing its industrial holdings to over one million square feet.
“We are honored to have closed on this acquisition with The Roxborough Group,” said Scott Arnoldy, managing partner of TREP. “The portfolio offers a compelling mix of income and upside we do not often see on stabilized industrial properties.”
TREP and Roxborough’s plans include strategic cosmetic upgrades to refresh the buildings’ interiors and exteriors, and focused property management and leasing efforts tailored to each property.
“This deal is a testament to the strength of the Houston industrial market, especially the Eastside submarket,” added Will Hedges, managing partner of TREP. “The portfolio’s locations, tenant mix and product type have created a dynamic investment opportunity, which we are very pleased to have closed on in partnership with The Roxborough Group.”
About The Roxborough Group
The Roxborough Group is a private real estate investment firm founded in 2013. Headquartered in San Francisco, California, the firm has a broad mandate to invest in all real estate asset classes, both directly and with operating partners. Roxborough focuses on opportunistic, value-add and transitional real estate assets, high-yielding real estate debt, real estate-related operating businesses, as well as high quality, lower risk and longer duration real estate investments. For more information, please visit www.theroxboroughgroup.com.
About Triten Real Estate Partners
Founded in 2011, Triten Real Estate Partners (“TREP”) is a subsidiary of the Triten Corporation, an investment holding company dating back nearly 70 years with operating subsidiaries in energy, media, real estate and consumer goods. Leveraging its almost 30 years of project and construction management experience, TREP is able to execute on complex development and capital projects. With offices in Houston and Dallas, the company prides itself as being entrepreneurial and flexible to find investments through a disciplined research and market driven approach. For more information, please visit www.tritenre.com.