DALLAS — Sealy & Co., a sponsor of Sealy Strategic Equity Partners (SSEP), a private equity offering and diversified limited partnership, has purchased Southwest Properties, a 2.23 million-square-foot industrial portfolio.
The portfolio consists of 149 buildings located in three markets: Dallas; El Paso, Texas; and New Orleans.
The seller was an undisclosed fund.
“The Southwest Properties transaction demonstrates the ability of SSEP to capitalize on an opportunity to acquire a critical mass of functional industrial product in three of SSEP’s target markets using our enterprise financing structure,” says Scott Sealy Sr., chairman of the board of Dallas-based Sealy.
“SSEP is positioned to continue to acquire and enhance industrial distribution properties to provide stable, improving portfolio performance and enhance equity value.”
The assets were purchased at a significant discount to replacement cost and are currently 94 occupied.
The Southwest Properties portfolio contains assets that feature an average office finish of 18 percent and are functional with respect to clear height, loading areas, parking and access.
The portfolio consists of two sub-portfolios: the Class B portfolio of 12 traditional warehouses in Texas and Louisiana; and Mustang Creek in Forney, Texas, which consists of two master-planned business parks featuring buildings that are functional for light distribution and service center uses.
The purchase of the portfolio realized gains for Sealy that include a 25 percent increase in square footage to 8.86 million square feet, a 23 percent increase in total asset value up to $380 million and further diversification by tenant type, market and number of tenants.
Sealy is a fully integrated commercial real estate investment and operating company that acquires, develops and redevelops regional distribution warehouse, industrial/flex and other commercial properties.
— Scott Reid