Benchmark

Benchmark was a 157,887-square-foot industrial development in the Northwest submarket of Houston, consisting of a clear height of 32’, on-site trailer storage, a fenced and secure truck court, ample car parking, and an ESFR sprinkler system.

In Q1 2021, Stream executed a lease with Amazon for the entire building at a 64-month term, four months of free rent, $5.50 PSF NNN with 2.5% annual bumps, and $7.00 PSF in tenant improvements. Stream and Amazon used a previously negotiated lease, which helped fast-track the entire process. The lease commenced immediately following the effective date of the lease. Immediately after lease acquisition Stream received an offer from Black Creek Group (“BCG”) to purchase the building for $20,750,000 ($131.42 PSF) and a 4.19% cap rate. The high purchase price and low cap rate were driven by Benchmark’s infill location, Amazon’s credit and investment in the property, and momentous industrial capital markets. Stream completed the sale of Benchmark to BCG on June 28, 2021, resulting in a 2.44x equity multiple and a 55.84% deallevel return.