JLL Capital Markets closed the sale of the industrial facility and arranged acquisition financing for the new owner
JLL Capital Markets announced today that it has closed the sale of and arranged acquisition financing for a fully leased, 1.01-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 (“Exan”) 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 added.
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.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
About Exan Capital
Exan Capital is an independent real estate fund manager with asset management services, primarily active in United States gateway markets and select European cities. The group was founded in 2013 and currently has its headquarters in Miami, Florida, with a regional office in Madrid, Spain.
About New York Life
New York Life Insurance Company (newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies**.
*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 5/18/20. For methodology, please see fortune.com/fortune500/.
**Individual independent rating agency commentary as of 10/15/20: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
