Macfarlan Capital Partners this week announced it has acquired 9 class A warehouse buildings totaling 750,765 square feet in Texas and New Mexico.
Macfarlan purchased the multitenant industrial portfolio for $37 million. The properties are located in San Antonio, El Paso and McAllen, Texas, and Santa Teresa, N.M.
“This portfolio includes properties strategically located along distribution routes carrying goods between Mexico and the United States, an area that we expect to see dramatic growth in coming years,” said P.J. Brady, acquisition manager at Macfarlan. “Manufacturers from throughout the world exporting to the United States are dealing with overtaxed transportation hubs and are searching for alternative trade routes.”
According to the federal Bureau of Transportation Services, about 79 percent of all manufactured goods coming into the United States from throughout the world are transported across waterways. But U.S. ports are experiencing strains on capacity. For example, a report this month from the Los Angeles County Economic Development Corp. predicts that at current rates of expansion, America’s second largest port, the combined Los Angeles/Long Beach port, will be at full capacity within the next 18-24 months, according to a press statement.
“Ships in California face significant traffic jams at sea,” Brady said, “so it is far more efficient for manufacturers from around the world to move products through Mexican ports and then overland by rail or truck through Texas. We’re anticipating our warehouse properties will benefit from this increased traffic as manufacturers see overland routes as an attractive alternative.”
Brady said this portfolio also benefits from the area’s low cost of living and business, which have made these markets some of the fastest growing metropolitan areas in the county and magnets for Fortune 500 companies such as Toyota, which recently began construction on an $800 million truck manufacturing plant in San Antonio.
Macfarlan Capital Partners is a specialty real estate private equity investment firm that focuses on special-situation properties that are distressed, innovative or recapitalization related.