DALLAS, TX -- NAFTA Corridor Properties Fueled by Overcrowded Ports and Strong Economic Factors Macfarlan Capital Partners announced today that it has acquired 9 Class A warehouse buildings in Texas and New Mexico as part of its ongoing strategy of quickly identifying emerging trends and capitalizing on them to create high-return investments.
The acquisition of the industrial portfolio is part of Macfarlan's strategic focus on special situations. By finding distressed and innovative high-return commercial properties in undervalued niches like the NAFTA corridor, Macfarlan's strategy has built wealth for investors regardless of market conditions.
Macfarlan purchased the multi-tenant industrial portfolio for $37 million. It contains a total of 750,765 square feet in four cities located along the U.S.-Mexican border, as well as in San Antonio. The border cities include El Paso and McAllen, Texas, and Santa Teresa, New Mexico.
"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.
"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."
About 73 percent of trade between Mexico and the United States already follow the route that passes through cities where the warehouses are located. And exports from the United States to Mexico have grown dramatically since the enactment in 1994 of the North American Free Trade Agreement (NAFTA) that created a free trade zone for Mexico, Canada and the United States. Since the implementation of NAFTA, Mexican imports from the United States have increased exponentially, totaling over $111 billion in 2004. Mexico's geographic proximity to the United States propelled the creation of the maquiladora industry with thousands of factories near the U.S.-Mexico border serving as assembly plants for American companies that then export raw materials to Mexico and then import finished products back into the United States.
The properties acquired by Macfarlan are strategically located to benefit from all of this trade by offering easy access to major transportation arteries. Each property is located adjacent to airports and major highways.
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.
"We believe this is a strong indication of the long-term quality of the investment," Brady said. "This transaction reinforces Macfarlan's proven strategy of targeting special situations to create the kind of returns that investors demand in today's market."
About Macfarlan Capital Partners
Macfarlan Capital Partners is a specialty real estate private equity investment firm which focuses on special situation properties that are distressed, innovative or recapitalization related. The firm has completed more than $1 billion in real estate investments on behalf of institutional investors and wealth management advisors. As a real estate investor, the firm acquires office, industrial, retail, healthcare, and luxury hospitality properties located across the United States and abroad. Macfarlan provides investment programs with superior returns through targeted strategy Funds. For more information please visit: http://www.macfarlan.com/.
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CONTACT: Tom Murphy of Chandler Chicco Agency, +1-202-339-0111, for
Macfarlan Capital Partners
Web site: http://www.macfarlan.com/
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