California Investor Buys Industrial Park
By Katherine Feser

HOUSTON CHRONICLE
Published September 17, 2006

A California investor is getting into the industrial arena with the purchase of the 18-building North Belt Industrial Park near Beltway 8 and the Hardy Toll Road.

"We're attracted to the deal because it was a value-added play," said Manny Khoshbin, president of the Khoshbin Co. of Irvine, Calif. "We also own several hundred thousand square feet of office space in the area. Because of our management team in place at Greenspoint, it makes sense to add more in Greenspoint."

Dallas-based Westmount Realty Capital and its minority partner InSite Realty Partners sold the 474,000-square-foot complex on 30 acres to the Khoshbin Co.

"That location is driven by a lot of the activity related to Houston Intercontinental Airport," said Cliff Booth, president of Westmount. "That's why it was a good investment for us and will continue to be a good investment for the new owner."

The project consists of Greenbriar Square Plaza, Greenbriar I Plaza, Greenbriar II Plaza, Greenbriar 8 Plaza and Hedgecroft Square. The buildings are north of Beltway 8 near West Hardy Road, Bradfield, Hedgecroft and Kenrick, about three miles west of the airport.

The properties are one-story structures built in the early 1980s, ranging from bulk distribution space to office space. Rental rates range from around 20 cents to 60 cents per square foot a month, Booth said. By comparison, newly built industrial space can cost $1.50 per square foot, although that price would include extras such as janitorial service.

Westmount Realty and InSite were able to boost occupancy from around 72 percent in 2004 to 85 percent currently, Booth said. Some of the major tenants are Continental Airlines, Securitas and Control Dynamics. The partners purchased the asset in December 2004.

The space has appealed to entrepreneurs and import companies that want flexible office/warehouse space, Mike Handel of InSite Realty Partners said. Khoshbin will continue to offer its own on-site management. Leases as small as 1,200 square feet up to 25,000 square feet are available.

Khoshbin entered the Houston market in 2004 with the purchase of office in Northchase it has since sold. Khoshbin owns three midrise office buildings in Greenspoint: 333 North Sam Houston Parkway East, 10700 North Freeway and 12941 North Freeway. The company also owns Savoy, consisting of two 12-story buildings.

The North Belt property sales price was not disclosed, but Khoshbin said it was below the going rate of $40 to $50 per square foot for comparable properties. Khoshbin plans to make improvements, ramp up the leasing and hold the asset for two to three years.

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