610 Loop is a portfolio of five class B well located infill industrial assets in the high-growth Sun Belt market of Houston, Texas.
The assets are located with easy access to major thoroughfares, proximity to decision makers and excellent labor leading to the submarkets outperforming the broader Houston metro area.
The portfolio features a granular rent roll of tenants from a diverse array of industries with an average occupancy of 97% since 2010, and an average tenure of over 19 years, which provides the REIT with stable in-place cash flow along with the opportunity to mark expiring rents to market.
The basis is 28% below estimated replacement cost of $150 sq. ft. for this portfolio. Moreover, ongoing supply chain constraints will continue to expand development timelines and put upward pressure on construction costs. These factors will make it more difficult for developers to replicate this multi-tenant, infill industrial product that is demised down to smaller suites. This portfolio will attract tenants due to its prime location and its ability to offer rents well below newer, class A product.
Houston Loop Industrial is an opportunity to acquire a core plus industrial portfolio located in a target market at an NOI yield which supports the REIT’s objectives to provide durable income, diversification and long-term appreciation to investors.
- Houston is the nation’s fifth largest city with 7.2 million residents and is one of the fastest growing metros in the U.S. The market benefits from its role as an international distribution hub, given the highly active Port of Houston, and strong local demographic trends.
- The Houston market totals 726mm sq. ft. of industrial inventory and currently sits at 6.6% vacancy. Houston ranked second nationally in terms of net deliveries, spurred by the continued population growth within the Texas Triangle. Houston ranked fifth in net absorption nationwide with 30.7mm sq. ft. absorbed in the last year, a record for the city.