The Opportunity: The Inland Empire Distribution Center was acquired in August 2010 at an acquisition price of $50.3 million. At the time of acquisition, the property was 100% vacant. In February 2011, the joint venture that owns the property entered into a 94-month lease with Hewlett-Packard to occupy the entire property.
Result: The asset transitioned from vacancy to 100% occupancy through a long-term single-tenant lease, which resulted in an attractive property-level IRR upon the sale of the property in September 2011. The property was sold for $95 million in September 2011, generating a property-level IRR of 81.5%.
Asset Type: Two single-story, cross-dock industrial buildings
Asset Size: 1.4 million square feet
Year of Construction: 2008
Acquired: 16% net joint venture interest in August 2010
Sold: September 2011
Behringer’s consolidated assets within the industrial portfolio include the Archibald Business Center, Inland Empire Distribution Center, and Interchange Business Center. Combined, they generated a total IRR of 24.5%.