APG’s Manufacturing, Maintenance Complex Commands $10M-Plus in All-Cash Deal
November 6, 2023
HOUSTON – Sublime Properties LP has sold Allied Power Group’s manufacturing and maintenance facility near George Bush Intercontinental Airport to a Canadian family office in an all-cash transaction for more than $10 million.
The dealmakers were a 20-year triple net lease with annual rent hikes and a premier location – 2430 Farrell Rd., less than one-quarter mile from the airport’s north service road. Marc Peeler, senior vice president of NewQuest Properties’ investment sales division, represented the seller in the direct deal.
APG is the world’s third-largest service provider for gas turbines. Situated on 6.49 acres, the 75,767-sf manufacturing facility was completed in 2017 and expanded in 2021. The fully air-conditioned complex houses more than $8.5 million of specialized equipment, including eight cranes, and inventory.
Sublime had developed the industrial complex for its former company, NexGen Advanced Fuel Systems, which subsequently was sold to APG. Sublime held fast to the real estate and secured a new corporate net lease before bringing it to market.
“There were many moving parts to this transaction, which was emotional for the seller because it represented the end of an era,” Peeler says.
The transaction mirrors sales trends in Greater Houston with private investors bankrolling the majority of trades, according to recent industry reports. Cross-border investments, like the APG acquisition, represent a small percentage of this year’s sales activity.
The North Houston submarket is hovering 125 million sf of industrial development. The APG complex and neighboring large-scale projects are situated in a triangular-shaped pocket bordered by Beltway 8, Hardy Toll Road and Interstate 45, with the airport at the bull’s eye.
“The airport submarket is one of the city’s strongest industrial corridors,” Peeler says. “The Canadian family office’s all-cash acquisition is a testament to the confidence it has in Houston’s economic strength and continued high growth.”
SOUTH TEXAS LEASES
Buffalo Wild Wings GO has leased 1,750 sf in Saratoga Town Center, located at the intersection of Saratoga Boulevard and Staples Road, Corpus Christi, from NewQuest Properties. Nina Irwin of NewQuest Properties represented the landlord. Brent Glover of Prime Realty represented the tenant.
Total by Verizon has leased 1,400 sf of retail space in Sam Houston Town Center, located at the intersection of Interstate 45 and FM 1097, Willis, from NewQuest Properties. Lara Lee LaMendola of NewQuest Properties represented the landlord in the direct deal.