DALLAS – In a quietly marketed disposition, ML Capital Ltd. has sold a 100%-leased industrial complex, totaling 67,200 sf, and cell tower site in North Dallas' Valwood Industrial Park to a locally based investment group.
The four metal warehouses and leased cell tower are set on nearly four acres at 11455 Newkirk St. in Dallas. The complex, developed in the mid-1980s, is the seller's only commercial real estate holding.
Brian Pafford, senior vice president and managing partner of Dallas-based Bradford Commercial Real Estate Services, and Jason Finch, senior associate, represented the seller in a direct deal with Concord-Newkirk LP.
Each of the four warehouses is about 16,800 sf. Design features include 16-foot to 20-foot clear height, six grade-level doors, sprinkler system, heavy power and fenced outside storage. Adding to the project's appeal is a location with easy access to Interstates 35E and 635.
"It's always leased," Pafford adds. "The draw is the product type – functional space for smaller users. There's always a need for this kind of space."
Bradford began leasing the 11-tenant complex when ML Capital of Southlake bought it nine years ago in a one-off venture into commercial real estate. "It turned out to be a good investment for him," Pafford says.
The Bradford team's off-market pitch drew several offers from neighboring property owners, one of who was the buyer. The deal went full circle in a 45-day look and 30-day close.
Dallas/Fort Worth's industrial demand topped 20 million sf in Q4 2018 for the third consecutive year, resulting in a record-low vacancy rate hovering 6% market-wide, according to brokerage reports. The North Stemmons/Valwood submarket's year-end vacancy was 6.3% at year's end in its 49.7-million-sf inventory.
"Since the asset was 100% leased, it was a good time to test the market given the continued strong demand for industrial space," Pafford says. "And the seller's glad that he did."