AEW Capital Management LP sold Lanark Distribution Center, a two-building industrial property in San Antonio, Texas. Albany Road Real Estate Partners is the buyer, according to public records.
Located at 610 Lanark Drive, the development was constructed on a 10-acre site in the metro’s northeast industrial submarket. The property offers 235,400 square feet across two buildings and features 22 to 25-feet clear heights, 155-foot truck court depth, 55 dock doors and seven drive-in doors. One of the buildings, offering nearly 148,000 square feet, was developed in 1975, while the second one, at about 88,000 square feet, was constructed in 1982. The asset is situated near Interstates 10 and 35, which connect it to other major Texas cities like Austin and Houston.
Stream Realty Partners’ Jamie Jennings, Andrew Rabinovich, Kevin Cosgrove and Walter Simpson represented AEW Capital Management in the transaction.
According to Stream, Lanark Distribution Center was approximately 97 percent leased at the time of sale to a diverse mix of regional and national tenants. The tenant roster includes Ram Tool Construction Supply Co., Powerhouse Toys, and safety equipment supplier ABATIX. The property has a weighted average lease term of 2.6 years, with leases ranging in size from 3,000 to 86,620 square feet.
AEW Capital Management acquired the property in the summer of 2019, CommercialEdge data indicates.
Limited industrial supply in San Antonio
Jennings, Stream’s managing director of investment sales, said in prepared remarks that Lanark Distribution Center could increase its occupancy, since it is situated in a supply-constrained market. The San Antonio region has been attracting major companies like Amazon, which recently announced plans to bring three new facilities totaling 2.1 million square feet to the area.
Jennings added in his prepared statement that demand for well-located, small light-industrial properties is outpacing demand for larger warehouses in central Texas. Further north, Stream Realty also brokered the sale of a Dallas-area industrial property in January.