With assistance from Stream Realty Partners and Stan Johnson Company, Empire Holdings has sold a nine-building national industrial portfolio to Philadelphia-based Arden Group, a leading U.S. middle-market real estate fund manager.
Arden Group purchased the approximately 350,000-square-foot, single-tenant portfolio that includes assets across five states. Ranging from 16,000 square feet to 150,000 square feet, the properties are strategically located in major industrial markets with low building coverage and boast outside storage or excess land with opportunities for future growth or expansion.
Stream Executive Managing Director and Partner Seth Koschak and Vice President of the Fort Worth Industrial division Jeff Rein represented the seller in the transaction. The national real estate services, development, and investment company is based in Texas, where five of the nine warehouses are located. In addition, Zach Harris and Jeff Hughes of Stan Johnson Company partnered with Stream to co-represent the seller in the transaction.
The deal included eight freestanding net-leased industrial buildings in the Texas markets of Dallas-Fort Worth, Houston, Austin, and San Antonio as well as Fort Lauderdale, Florida; Memphis, Tennessee; Atlanta, Georgia; and Tulsa, Oklahoma. A speculative industrial building in Houston that just completed construction also was part of the transaction.
Buildings in more than two-thirds of the portfolio were built between 1999 and now. All offer stable tenancy in their respective markets.
Arden recently formed a $1B Joint Venture specifically focused on acquiring ISFs, or low site coverage industrial assets, situated in dense, infill locations. “The Empire Portfolio is emblematic of the types of partnerships we are looking to form with users in the ISF space and we look forward to continuing the relationship with the team,” Vergilio noted.
Koschak, along with Executive Managing Director and Partner Matteson Hamilton, helped Stream expand its national platform in February 2022 by launching an Industrial Capital Markets division beginning in Texas. The service centralizes the investment sale process for transactions such as the Empire Holdings deal to create opportunity and value for the firm’s clients. The group specializes in investment sales and acquisitions, equity and fund placement, debt placement, and other services that provide real-time market data and trend analysis.
