An investor group led by IC sold its industrial property in Valwood Industrial Park in Carrollton, Texas after a 10-year holding period.

The 90,000 sf building with an 80/20 warehouse/office space layout had been rented on a net basis to a renowned heating and air conditioning distributor since the late 1990s.

Valwood Industrial Park, covering a total area of over 2,000 acres, is the third largest industrial park in the Dallas-Ft. Worth Metroplex with over 27 million square feet of leasable area in more than 500 buildings.

When purchasing the property, the partnership relied not only on the property's excellent location on one of the industrial park's main traffic arteries, but also on the tenant's loyalty to the location, its credit and “Texas-appropriate” HVAC product, as well as on the prospect of the property increasing in value over a long-term holding period. The rent at the time of purchase was well below market rent.

The combination of an excellent location, well-negotiated purchase and sales prices, and significant increases in the value of industrial real estate over the last 10 years resulted in an equity multiplier of >4.9 (before taxes) for investors at the end of the holding period.

For the buyer who specializes in purchasing industrial properties, especially in the DFW Market area, the location and the possibility of future rent increases were at the forefront of the purchase decision.

Martina Crevecoeur, SVP Acquisitions/Dispositions at IC, and Christiane Hepfer, general partner of the partnership, represented the investor partnership in both the purchase and sale of the property.