Corinth, PCI sell 17-building North Texas light industrial portfolio

The Northgate Business Park, located at the intersection of Miller Rd. and I-635 in Dallas, was acquired by the Corinth Land Co./Prattco Creekway Industrial (PCI) investment partnership in July 2018. It was a cornerstone of the group’s portfolio before being recently sold alongside their other North Texas holdings. Photo Credit: Epic Foto Group

Fort Worth-based Corinth Land Co. and Dallas-based Prattco Creekway Industrial have sold a 17-building light industrial portfolio totaling almost 570,000 square feet in North Texas.

The 99-percent-leased portfolio includes a mix of multi-tenant and single-tenant buildings with only two unoccupied suites at the time of sale. The facilities are in some of DFW’s most coveted infill industrial submarkets – Arlington, Brookhollow, Great Southwest, NE Dallas/Garland and Southwest Tarrant – providing unmatched connectivity to DFW’s major transportation arteries, strong labor pools and primary residential areas.

Following the sale, PCI was retained to provide property management and asset management responsibilities for the new ownership.

“The Corinth Land-PCI partnership has been in acquisition mode for a number of years, and I must tip my hat to PCI for their sourcing of prospects, due diligence and execution on closing, among other strengths,” said Corinth Land Co. president and founder Paun Peters. “It’s an ideal partnership and we will continue to pursue investment opportunities in DFW and other major U.S. markets.” 

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“Considering the extraordinary yield compression in the industrial sector combined with our hands-on property/asset management services, the transaction was a win-win,” said Lance Bozman, PCI managing partner. “The timing was right to monetize the increased value of our portfolio and we were fortunate to attract an international, quality institutional buyer.”

Founded by Peters in 2006, Corinth Land Co.’s initial focus was providing oil and gas surface sites and easements in the Barnett Shale. Peters sold the company’s holdings in 2016 and is now focused on the acquisition, development and operation of commercial and residential real estate assets in strategic locations throughout the DFW area, Texas and North America.

According to a 3Q market report from Transwestern, the industrial market in the Dallas-Fort Worth area remains strong with rent growth accelerating as vacancies decline. Meanwhile, new construction has ramped up to meet the demand, according to the report.

 The sales price and buyer for the transaction were not disclosed by the two parties, but Investcorp, a ‎Bahrain-based global provider and manager of alternative investment products, announced Oct. 6 that it has acquired 89 industrial properties totaling approximately 2.2 million square feet across four major US markets – including North Texas – for a total purchase price of $380 million.  

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“As active investors in the U.S. industrial sector, we have observed firsthand the strength of our existing portfolio as e-commerce has boomed and supply chains are streamlined within growth markets throughout the US. We are excited to expand our already sizable US industrial portfolio with these key acquisitions in some of the largest and strongest industrial markets in the country,” said Herb Myers, Co-Head of Real Estate North America at Investcorp. “We look to invest in fast-growing regions with diversified economies, strong transportation infrastructure and access to the booming technology industry which is what we believe we have found in these industrial hubs.”

Michael Moriarty, Principal, Commercial Acquisitions at Investcorp added: “The industrial asset class has enjoyed increased growth in recent years as ecommerce fueled the evolution of supply chain logistics and limited levels of new supply were unable to match new demand. Our latest acquisitions capitalize on the strong demand for industrial properties as the supply-demand imbalance is expected to continue to drive exponential rent growth.”