With the repositioning now complete, Hangover Opportunity Fund has sold a fully leased, three-building industrial property on 16.8 acres in southeastern Johnson County in an all-cash transaction with a private investor from Houston.
The seller has spent roughly $250,000 into turning around the 144,698-sf Grandview Industrial Complex, which was nearly 88% vacant when it was bought out of foreclosure three years ago. The fund's manager, SkyWalker Property Partners, immediately undertook a major upgrade of the shuttered RV conversion plant and subsequently signed three long-term tenants, each leasing an entire building at 8800 FM 916.
"It was a classic Hangover deal. It was a distressed property and it needed love," says Clint Holland, acquisitions director and asset manager for SkyWalker Property Partners. "This was a perfect execution if you know what we do."
The largest building, 82,210 sf, is leased to Noltex Truss DFW Inc. The 44,988-sf warehouse is occupied by Leland's Industries LLC and the smallest structure, 17,500 sf, is home to AES Drilling Fluids LLC. All three are in place at least three more years.
"We had implemented all of the turnaround strategy that we had for it. Now was a good time to sell," Holland explains.
Zane Marcell and Dustin Volz of Jones Lang LaSalle had the property listing just two months when Houston investor Eli Sasson, who represented himself, made an all-cash offer, using funds from several 1031 exchanges to complete the acquisition.
"It's purely an investment for him," Holland says.
The property is close enough to Interstate 35W for tenants to capitalize on NAFTA Highway's trade value, particularly those needing outlying locations within reasonable distances of populated area, such as oil- and gas-related businesses.
"We saw a major opportunity when we bought this property. This sale proves our instincts were correct and our repositioning strategy was right on target," Holland says.
SALE
Hangover Opportunity Fund has sold a 144,698-sf, three-building industrial complex on 16.8 acres at 800 FM 916 in Grandview, TX, to Eli Sasson. Zane Marcell and Dustin Volz of Jones Lang LaSalle represented the seller in the direct deal.
SkyWalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of the Hangover Opportunity Fund LLC, formed in 2010 to build a $100 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $1 million to $10 million. Additional information about the investment group is available at www.SkyWalkerProperty.com.
