Newmark Completes Sale of Eight-Building, Shallow-Bay Industrial Portfolio in Fort Worth, Texas

January 18, 2024 3:00 PM

Newmark announces it has completed the sale of the Blue Smoke Portfolio, a shallow-bay infill industrial park totaling 161,418 square feet with 1.5 additional acres of land in Fort Worth, Texas. The portfolio includes eight multi-tenant buildings – 2424 Blue Smoke, 2400 Ludelle 100-300 and Blue Smoke Buildings A-F.

Newmark Vice Chairmen Dustin Volz and Stephen Bailey, Senior Managing Director Dom Espinosa, Managing Director Zach Riebe and Associates Taylor Hare and Chloie Mercer represented the seller, PHP Capital, in the sale to Basis Industrial.

“In a capital markets environment where shallow-bay portfolio transactions are very competitive, the Blue Smoke Portfolio emerged as a distinctive avenue for investors to significantly expand their footprint through a single transaction,” said Bailey.

With each building comprising approximately 30,000 square feet, the Blue Smoke Portfolio is well-suited to accommodate a wide range of industrial uses, from light distribution and storage to manufacturing.

“The portfolio transaction demonstrates our ability to successfully diversify our asset classes and locations, combining acquisitions, refinancing, multiple lenders and mezzanine financing. With multiple sellers and lenders involved, the transaction was complicated, but we worked through it and got it closed,” said Anthony Scavo, Chief OO and President of Basis Industrial. “Shallow-bay industrial assets have done very well for us, and we are extremely pleased to close on these properties to complete this portfolio, which offers unique benefits in strategic locations.”

Situated within the East Fort Worth submarket, the Blue Smoke Portfolio is surrounded by a diverse tenant base of manufacturers and local retail/food distributors, including Bell Helicopter, McLane Food Service, Allied Electronics and ATCO Rubber Products. The portfolio offers unparalleled connectivity to a robust and growing workforce via Hwy 287, I-30 and I-35, as well as proximity to the DFW International Airport.

According to Newmark Research, demand within the Dallas-Fort Worth industrial market remains positive as the market realized 6.6 MSF of positive absorption in the third quarter of 2023, bringing year-to-date totals to 25.1 MSF. The construction pipeline recorded the third consecutive double-digit delivery quarter at 16.3 MSF, with another 50.8 MSF under construction. This surge in new deliveries is anticipated to outpace demand in the near term.

About PHP Capital
PHP Capital Partners is a privately owned industrial real estate investment firm based in Fort Worth, Texas that is primarily focused on the acquisition, operation and asset management of functionally superior, light industrial real estate properties in major Texas markets as well as other strategic regional markets. Since the beginning of 2021, PHP has executed on this strategy by acquiring over 1.1 million square feet of properties within their target markets

About Basis Industrial
Basis Industrial is a Boca Raton-based real estate investment and development company that targets existing multi- tenanted industrial properties, ground-up self-storage properties and recently built ground-up multi-tenant industrial properties, across the US with a specific focus on high-growth Sunbelt markets. Basis has successfully executed more than 100 real estate transactions over the past twenty-five years, equating to over $1B of deployed equity. The Sponsor’s active participation in all aspects of property acquisitions, development and management has enabled them to leverage 100 years of collective experience to maximize the success of these transactions. Utilizing data points from each product type, the Sponsor enhances management and property operations, resulting in increased profit margins across their portfolio of owned, developed, and managed assets.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of September 30, 2023, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 7,400 professionals around the world. To learn more, visitnmrk.com or follow @newmark.

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