(HOUSTON, TX) – Rycore Capital, in partnership with TriGate Capital, has completed the sale of ~300,000 square foot Class B multi-tenant shallow bay flex industrial property in Houston, Texas. The transaction marks the successful exit of the investment originally acquired in 2021. The Partnership realized a 27% premium relative to the original purchase price.
The Property consists of eight institutional quality, flex/light industrial buildings with 12-foot clear heights and leased to approximately 65 tenants. Positioned in one of Houston’s most established and supply-constrained industrial submarkets, the Property benefits from direct access to US 290, Loop 610, and I-10, placing it within minutes of the urban core and key distribution corridors. The Northwest submarket continues to see strong tenant demand, limited new development, and meaningful rental growth, particularly for small-bay product.
The Partnership implemented a business plan focused on strategic capital improvements and targeted lease-up initiatives. Over the hold period, the Partnership executed a strategic repositioning plan to reduce office buildout and deliver move-in ready space to the market, resulting in over 275,000 square feet of new and renewal leasing while maintaining a stabilized occupancy of ~ 93%.
“We are very pleased to have gone full cycle on this industrial value add portfolio with Trigate Capital. This was a disciplined execution in a submarket we know well, and we’re proud of the double-digit cash yield to our investors as well as strong appreciation upon the sale”, said Parker Lund, Director of Asset Management.
About Rycore Capital LP
Rycore Capital LP (the “Firm”) is a Houston-based real estate investment manager with approximately $413 million AUM, focused on acquiring, leasing and managing income producing properties that deliver superior real estate solutions to our tenants while providing our investment partners with some of the most consistent value-add, core-plus and core returns. The Firm offers two investment platforms to investors: Fund Management and Direct Investment Advisory. The Firm aims to provide a solution with its institutional quality real estate investment management process to high net worth, family office and institutional investors. For more information regarding Rycore, visit the Company’s website at www.rycorecapital.com.
About TriGate Capital
TriGate Capital, LLC (TriGate) is a leading real estate investment manager focused on the recapitalization and repositioning of real estate assets and companies. TriGate is based in Dallas, TX and has completed investments throughout the United States. TriGate’s team has been responsible for acquiring over $11 billion of real estate assets through multiple types of transaction structures. The Company’s professionals have significant expertise in real estate operations, debt restructuring, and asset and company recapitalization. TriGate manages four fully discretionary real estate funds, TriGate Property Partners, LP (Fund I), TriGate Property Partners II, LP (Fund II), TriGate Property Partners III, L.P. (Fund III) and TriGate Property Fund IV, L.P. (Fund IV), which are the vehicles through which TriGate conducts its investment strategy.