OpenPath Acquires East Texas Industrial Property
The firm added more than 500,000 square feet to its growing portfolio.
OpenPath Industrial Partners, a division of impact investment firm OpenPath Investments, has expanded its portfolio with the acquisition of 2938 Brown Road, a 528,750-square-foot, fully leased distribution center in Marshall, Texas. Minglewood Properties LTD previously owned the asset, according to CommercialEdge information.
The Denver-based firm did not disclose the price it paid for the 39-acre property, but its officials noted it was acquired at a significant discount to replacement cost, giving OpenPath the opportunity of implementing a value-add strategy.
OpenPath was also able to lease the building to a Fortune 500 company prior to closing. The company declined to identify the tenant.
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Built in 2001, the Brown Road facility has 72 loading docks, up to 35-foot clear heights and backup power generators. It is fully wet sprinklered, has 7,000 square feet of office space including break rooms and a conference room, and 300 paved and lighted parking spaces. The site allows for flexible demising or expansion strategies.
The property is located 1 mile from Interstate 20 and about 2 hours east of Dallas. The East Texas I-20 corridor is one of the most significant freight routes in the southern U.S., benefitting from growing e-commerce, light manufacturing and regional distribution activity. The asset is also minutes from U.S. Highway 80, U.S. Highway 59 and Route 42.
“We were drawn to 2938 Brown Road because it checks every box for modern industrial functionality,” Jason Lennartz, vice president of acquisitions at OpenPath Investments, told Commercial Property Executive. “It’s a rare combination of scale, infrastructure and location that aligns perfectly with our strategy of acquiring logistics-oriented assets in high-demand transportation corridors.”
Holmes Davis, senior vice president and partner at Binswanger, was the broker for the property.
Growing portfolio
The Brown Road property is the eighth industrial acquisition by OpenPath Industrial. Late last year, the firm purchased Northern Louisiana Enterprise Center, an 820,743-square-foot industrial distribution park in Shreveport, La., for $26 million. The property is located on 137 acres at 9595 Mansfield Road, some 35 miles from the Marshall facility.
Founded in 2005, OpenPath Investments specializes in the acquisition, renovation and management of industrial and multifamily assets. The firm has a portfolio of more than 25 properties across the U.S. that exceeds $1 billion in assets under management. OpenPath Industrial has more than 3.2 million square feet of space under management.
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