CBRE announces the sale of Merchant Industrial, a four-building, 245,945 square foot industrial portfolio located at 7155, 7157, 7177 and 7189 Merchant Avenue in El Paso, Texas.
Arturo De La Mora, with the local CBRE El Paso team, and Jonathan Bryan, with CBRE Capital Markets, represented the seller, Phoenix based ViaWest Group. Bill Caparis, also with CBRE in El Paso, represented the buyer, Stonelake Capital Partners.
"ViaWest Group had a great vision and a flawless execution for this project since they acquired the property. These four industrial buildings were previously deteriorated and underperforming assets. After heavy renovation investments and repositioning, these buildings quickly became attractive to the logistics users in this market," says Mr. De La Mora. "CBRE was engaged by ViaWest Group throughout the acquisition, renovation and disposition of this project."
At the time ViaWest acquired the project in 2015, it was only 40% leased. With strategic investments in improvements to the property and a calculated marketing strategy, Merchant Industrial is now 94% leased.
"This property was the beginning of our expansion outside of Arizona and turned out to be a great project for us," says Steven Schwarz of ViaWest Group. "As one of the few multi-tenant properties in the Central El Paso submarket, we felt that this underperforming property was positioned perfectly for renovation and repositioning. CBRE did an excellent job in assisting us with the leasing, managing, and disposition. We look forward to more industrial opportunities in El Paso and throughout the Southwest U.S."
According to CBRE Research, as of the close of Q1 2018, the El Paso industrial market saw near-record leasing activity, with a vacancy rate of just 7.9%.