TULSA, O.K. (November 1, 2022) – Prior to the Northmarq acquisition of Stan Johnson Company, investment sales brokers Zach Harris and Jeff Hughes completed the sale of a nine-location portfolio occupied by Empire Roofing Group, a wholly owned subsidiary of Tecta America Corporation. The facilities are located across five states, Texas, Georgia, Florida, Tennessee and Oklahoma, and total 348,824 sq. ft. Harris and Hughes with Stan Johnson Company (now Northmarq) partnered with Seth Koschak and Jeff Rein of Stream Realty Partners to represent the seller, Empire Holdings – a Fort Worth, Texas-based national real estate services, development and investment company. The Arden Group, a leading U.S. middle-market real estate fund manager based in Philadelphia, Pennsylvania, acquired the portfolio.
“This portfolio transaction presented an attractive opportunity to acquire well-located low coverage industrial properties across some of the top markets in Texas and the Southeastern U.S., all leased to the same reputable company,” said Harris. “Empire Roofing is one of the top commercial roofing contractors in the country and, now owned by Tecta America Corp, they are primed for continued growth and success. Through our direct competitive marketing process, we selected Arden Group and were excited to work with them on this significant acquisition for their new and growing Industrial Service Facilities (ISF) portfolio.”
The portfolio includes nine freestanding industrial buildings ranging from 16,000 sq. ft. to 150,000 sq. ft., including a newly built Houston industrial building. Approximately two-thirds of the portfolio’s buildings were built between 1999 and now. The properties are strategically located in major industrial markets with low building coverage as well as outside storage or excess land with opportunities for expansion.
“After an extensive evaluation of the nation’s top brokerage teams to assist with this sales process, we selected Stream Realty and Stan Johnson Company (now Northmarq) as our trusted partners,” said Bowie Holland, president of Empire Holdings. “We were particularly impressed with their substantial due diligence on our portfolio and the innovative marketing strategies they brought to the table. We look forward to many more collaborations in the future.”
“This portfolio acquisition is part of our investment focus on ISF, including industrial outdoor storage sites, truck terminals, trailer parking and last-mile port facilities in core U.S. markets,” said Christian Vergilio, Director of Acquisitions for Arden Logistics Parks.
Arden recently formed a $1 billion Joint Venture specifically focused on acquiring ISFs, or low site coverage industrial assets, situated in dense, infill locations. “The Empire Portfolio is emblematic of the types of partnerships we are looking to form with users in the ISF space and we look forward to continuing the relationship with the team,” Vergilio noted.