Private equity firm picks up Houston-area sort center
JLL Capital Markets closed the sale of the Katy industrial facility to Walton Street Capital and arranged acquisition financing for the new owner
HOUSTON, Feb. 9, 2021 – JLL Capital Markets announced today that it has closed the sale of and arranged acquisition financing for an 805,601-square-foot, state-of-the-art sort center recently delivered as a build-to-suit for a market-leading e-commerce tenant in the suburban Houston community of Katy, Texas.
JLL worked on behalf of the seller, a publicly traded REIT. An affiliate of Walton Street Capital purchased the asset. Additionally, JLL placed the floating-rate acquisition loan with Wells Fargo Bank, N.A.
The cross-dock building features concrete tilt-wall construction, a 40-foot clear height, 190-foot truck court with substantial vehicle and trailer parking, 190 dock-high doors, ESFR fire protection and LED lighting. The mission-critical facility is triple-net-leased by the tenant on a long-term basis.
Situated on 54.15 acres at 22525 Clay Rd., the facility is in the western part of the Houston MSA proximate to the city’s large residential base and major employment centers, aided by direct access to Highway 99 (Grand Parkway) and proximity to Interstate 10.
The JLL Capital Markets Investment Sales 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.
“Single-tenant industrial assets with long-term leases to credit tenants continue to see significant interest from a multitude of investors,” Agnew said.
“With the continued residential and industrial growth along Interstate 10 and the Grand Parkway, this asset was a perfect strategic fit for both the tenant and buyer,” Strauss added.
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.
“The industrial sectors continues to be one of the most desirable asset classes for both investors and lenders, and the combination of an excellent credit tenant coupled with a best-in-class buyer created a great execution with Wells Fargo on the acquisition financing,” Johnson said.
The rapid adoption of e-commerce, accelerated by the COVID-19 pandemic, has continued to lead to rampant growth in the industrial property sector. 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.
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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 $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Walton Street Capital, L.L.C.
Walton Street Capital, L.L.C. is a private equity real estate investment firm. Since its founding in 1994, affiliates of Walton Street Capital have received total equity and loan commitments of approximately $14 billion from public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts, and high net worth individuals. Affiliates of Walton Street Capital have invested and/or committed to invest over $12 billion of equity in more than 500 separate transactions.