New Jersey-based investor Denholtz Properties has purchased a recently built industrial project in San Marcos from Freehill Development. It is Denholtz’s first acquisition in Texas.
The property, called Clovis Crossing, is made up of two buildings spanning 213,000 square feet at 1603 Clovis Barker Road.
The shallow-bay industrial development has 32-foot ceilings and covers 13 acres.
A team of four JLL brokers from New Jersey and Austin arranged financing from Palladius Capital Management on the deal. The acquisition price was not disclosed.
Stephen Cassidy, Denholtz’s president, cited the region’s population growth and regional economic diversity as reasons for the purchase. Elsewhere in the country, Denholtz is investing in multifamily and industrial projects, often on the outskirts of bigger markets like Nashville and Charlotte.
Clovis Crossing is along Interstate 35 between Austin and San Antonio, one of the fastest-growing regions in the country. Populations are booming in cities like Fredericksburg and San Marcos, slowly filling out the corridor between the growing cities to their north and south.
Volume home builder Lennar recently scored approval to build 1,600 homes in Caldwell County near San Marcos regional airport. Those who prefer ground travel between Austin and San Antonio will soon have a big new rest stop option, as Buc-ee’s secured a $4.2 million tax subsidy for a store in San Marcos. Just north of Austin, EQT Exeter spent $61 million to acquire a warehouse development in Georgetown.
Industrial dealflow remains relatively strong compared to other commercial assets, though around 14 million square feet of space hit the market for sublease last year in Dallas-Fort Worth alone.
Industrial vacancy rates sat near 7 percent last year, even as a record 116 million square feet of space entered the market, according to a report from CBRE.
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