2007 Buying Plan Gets Another 119,000 SF

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AUSTIN-A Dallas company has claimed a 119,000-sf warehouse complex from an Austin partnership for slightly less than its $8.5-million ask. The buyer’s second acquisition keeps it on track to meet its $100-million acquisition goal by year’s end.

Vintage Interests LP plans a $250,000 investment into the five-building Beatrice Cove Park at 2335-2415 Kramer Lane, which it acquired from TCC-Beatrice Cove LP. Rusty Perry, Vintage’s managing partner, says the capital will be used to replace roofs, take care of general deferred maintenance and cosmetic improvements to the office and industrial complex.

Perry says the 8.6-acre park, developed between 1978 and 1980, offers huge upside potential with its 20% vacancy and 30% roll in leases in the next two years. “I think a lot of those leases were completed when the market was in a downturn. Now that the Austin market’s recovered, we’re seeing a good rent growth across the city,” Perry tells GlobeSt.com, adding that current rents are 20% to 25% below market rates. HPI Real Estate Services, formerly Hill Partners, will continue to lease and manage the buildings.

When Vintage launched in March 2006, its goal was to buy industrial properties with value-add propositions. Perry says that the acquisitions keep pouring in, with a property in Lewisville, TX scheduled to close soon and another going under contract in Plano. When it comes to Austin, Perry says the motivation and interest to buy in the capital city remains strong although nothing else is under contract at this time.

To date, Vintage has bought more than $30 million of assets. The managing partner believes the $100-million goal will be made by the end of the year.

Jud Clements with Holliday Fenoglio Fowler LP’s Dallas office represented the seller. Brandon Chavoya, also with HFF’s Dallas office, arranged financing for the acquisition.