Hangover Opportunity Fund LLC has sold a 138,000-sf, two-building project in Fort Worth's Carter Industrial Park, capitalizing on a new long-term lease with the property's sole tenant.
The 11.5-acre property at 1200 Forum Way S. is triple-net leased to May Group International, a custom sign manufacturer. Shortly before the property hit the market, the advertising company had inked a seven-year renewal for the 60,000-sf and 78,000-sf office/warehouses, which are used as its headquarters and production facility, respectively.
The income-producing property received three offers in two weeks. "We got a reasonable number pretty quickly so it didn't stay on the market long," says Clint Holland, acquisitions director for North Texas-based SkyWalker Property Partners, which is liquidating Hangover's 21-property portfolio.
The 1200 Forum Way campus, bought in mid-November 2013, is the ninth asset in Hangover's portfolio to sell. Two more properties are under contract.
Theron Bryant, principal of Coldwell Banker Commercial Advisors, represented the seller, along with Joe Hamilton, investment sales associate. Chance Olin of Holt Lunsford Commercial negotiated for the local buyer, Forum Way Investments LLC. Bryant also negotiated the renewal with May Group.
The Hangover portfolio disposition is paving the way for SkyWalker to fund, build and manage portfolios for two more investment vehicles, Cash Flow Fever LLC and When Opportunity Knocks LLC. SkyWalker's team has been raising capital for the new funds, each $10 million to $20 million, and expects to close the investment window in December.
SkyWalker had targeted value-add properties to build the Hangover fund, as it is doing with When Opportunity Knocks. In the case of Forum Way, it was always an income-producing property because it was bought with May Group in place – and with a company principal as a co-investor through SkyWalker's tenant partner program.
"This property offered balance to the Hangover portfolio because it provided stable cash flow. We initially took on a risk with challenging lease termination language, but that was eliminated during renewal negotiations," Holland says. "That created the opportunity to put it on the market as a solid cash-flowing investment."
SkyWalker Property Partners, acting on behalf of Hangover Opportunity Fund, has sold a 138,000-sf office/warehouse property on nearly 11.5 acres at 1200 Forum Way S., Fort Worth, to Forum Way Investments LLC. Theron Bryant of Coldwell Banker Commercial Advisors represented the seller. Chance Olin of Holt Lunsford Commercial represented the buyer.
SkyWalker Property Partners identifies, underwrites, acquires and executes highly opportunistic and value-add investments on behalf of the Hangover Opportunity Fund LLC, formed in 2010 to build a $100 million portfolio of office, industrial and retail properties in Texas and surrounding states. The strategy targets transactions from $1 million to $10 million. Additional information about the investment group is available at www.SkyWalkerProperty.com.
