Miami-Based Group Acquires Houston Fulfillment Center

JLL’s capital markets team has closed the sale of and arranged acquisition financing for a fully leased, 1-million-square-foot fulfillment center leased to an investment-grade e-commerce retailer in the Houston-area community of Brookshire, Texas. JLL worked on behalf of the seller, a publicly traded REIT. Miami-based Exan Capital purchased the asset and structured the acquisition through one of its international investment vehicles. Additionally, JLL placed the five-year, fixed-rate acquisition loan with New York Life Insurance Company. Exan is working toward expanding its current portfolio by acquiring single-tenant office and industrial properties leased to investment-grade tenants in key markets across the U.S. This sale marked the second acquisition in 2020 with this vehicle, following the July purchase of an office building in San Jose, California, that is fully leased to a well-credited tenant. The fulfillment center is situated on 84 acres at 31555 Hwy. 90 in Brookshire, a western suburb approximately 38 miles from downtown Houston. The property is within the West Houston Industrial submarket, one of the most desired in the city. The facility was constructed in 2018 by the seller as a build-to-suit for the tenant. The state-of-the-art center features 36-foot clear heights, LED lighting, ESFR fire systems, 100 dock-high doors, deep truck court, two drive-in doors, ample trailer parking spaces and an abundance of parking for its approximately 1,600 employees. The property serves as a mission-critical location for the tenant, allowing them to serve the more than 10.5 million residents in and around Houston, Austin and San Antonio from a single location. The JLL capital markets investment advisory team representing the seller was led by managing director Trent Agnew, senior managing director Rusty Tamlyn, director Charles Strauss and analysts Tom Weber and Jack Britton. The acquisition for Exan was led by partner Ignacio Gil-Casares and vice president, investments, Arturo Vinueza. The JLL capital markets debt placement team representing the new owner was led by senior managing director Colby Mueck, senior director Michael Johnson and analyst Molly Leinsdorf. “This transaction represents the continued demand by investors to acquire e-commerce focused industrial real estate,” Agnew said. “With its proximity to the center of the Houston population, the property served as a mission-critical location for the tenant as they continue to expand their Houston operations,” Strauss said. The COVID-19 pandemic and the shelter-in-place policies that ensued have accelerated e-commerce growth and the need for warehouse space across the nation. JLL expects e-commerce sales could hit $1.5 trillion by 2025, which would increase the demand for industrial real estate to an additional 1 billion square feet.