Irvine, CA; December 16, 2021
CIP Real Estate acquired Dallas North Portfolio for $265 million in December. The portfolio is approximately 80% occupied by over 550 tenants and consists of nearly 2.3 million square feet in 36 individual industrial and office projects located in Dallas and the rapidly expanding North Dallas cities of Richardson, Addison, Plano, Allen, and Carrollton. The company is planning to invest more than $20 million in capital improvements in the next three years across the portfolio. These capital improvements will enhance dated property exteriors and significantly upgrade interior suites to new, high-quality spec condition. The portfolio was acquired by the company in its joint venture with Almanac Realty Investors.
All the assets were purchased from a Dallas-based private investment partnership, with debt funding from JP Morgan and MidFirst Bank coordinated by the Atlanta and Dallas based Equity, Debt, & Structured Finance team of Cushman & Wakefield. Correspondingly, the seller was represented in the transaction by the Cushman & Wakefield’s Capital Markets and Industrial Advisory Group.
“The acquisition of this portfolio of small bay industrial and office projects was a rare opportunity to acquire significant mass in the DFW metro, particularly in submarkets where reproduction is basically impossible due to zoning restrictions, lack of suitable land, and escalating construction costs. We are expecting rental rates to increase markedly in the next five years as strong demand for this product type outstrips the available supply of space,” said Eric Smyth, CEO of CIP Real Estate.
About CIP Real Estate LLC
CIP Real Estate LLC is a full-service real estate investment company focused on the acquisition, repositioning, re-branding, and management of industrial assets throughout West Coast, Southeast, and Texas markets. Founded in 1995 and based in Irvine, CA, the company owns and manages approximately 6.7 million square feet of quality properties, with offices in Ontario (CA), Riverside (CA), Hayward (CA), Las Vegas, Charlotte, and Atlanta. www.ciprealestate.com