PS Business Parks (PSB) strengthens its portfolio with the acquisition of Port America

The acquisition of Port America can strengthen the presence of PS Business Parks (PSB) in Texas and allow it to focus on improving the fundamentals of the …

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September 2, 2021

3 minutes to read

This story originally appeared on Zack

PS Business Parks, Inc. PSB announced the completion of the buyout of Port America in Dallas, TX for $ 123 million. This decision is part of the management’s “industrial investment strategy in small bays”.

This 717,735 square foot multi-tenant industrial park comprises 15 buildings with an average customer base of 8,000 square feet. It is conveniently located adjacent to DFW International Airport on fee simple land and complements the company’s current industrial and flexible portfolio in Dallas, which totals 3 million square feet.

The property provides institutional grade industrial space for small and medium-sized users seeking a high-quality location, 26-foot headroom, large dock loading, as well as access to major highways serving DFW Airport. and the Dallas Metroplex. All of these factors likely played a key role in attracting tenants and the property was 96% occupied at closing.

Therefore, funded in part by $ 72 million of the 1,031 trade proceeds from the announced divestments of the Park East and Monroe business parks in Northern Virginia and available cash, this buyout appears strategic for PS Business Parks, which focuses on small and medium businesses. medium-sized tenants.

The Port America acquisition should help the company emerge stronger amid improving industrial market fundamentals in the United States, while the sale of non-strategic properties will likely result in a better mix of the portfolio in the days to come. . In fact, capital recycling efforts, a strong balance sheet, and sufficient liquidity will help the company firmly resist cash flow problems and seize growth opportunities in the coming period. However, increased supply in several markets is likely to intensify competition.

Over the past month, shares of this company Zacks Rank # 3 (Hold) have gained 3.7%, outperforming the industry2.2% growth. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

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