Point West Business Park | Hanson Capital

Point West Business Park

 10161, 10165 & 10175 Harwin Dr,

Houston TX 77036

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Opportunity Summary

Hanson Capital Group is pleased to present the Point West Business Park, a three-building, 144,810 square foot multi-tenant industrial portfolio comprising 22 bays located at 10161, 10165, and 10175 Harwin Drive in the Southwest corridor of Houston, Texas. The portfolio is being acquired at a basis of $142 per square foot, a substantial discount to current replacement cost that provides meaningful downside protection and an attractive entry point into one of Houston’s most active and accessible industrial submarkets.

 

The portfolio is 90% leased at acquisition, generating immediate and diversified cash flow from a broad mix of tenants across all three buildings. The masonry construction, originally built in 1979, presents in excellent condition and is a testament to the quality and durability of the original build. Masonry product of this vintage is increasingly difficult to replicate at any reasonable cost, and the physical integrity of the buildings means capital can be directed toward value-add improvements rather than deferred maintenance.

 

The investment thesis is driven by a clear and near-term rent growth opportunity. In-place rents average $0.85 per square foot NNN against a market average of $1.00 per square foot NNN, a spread that is actively being validated in the immediate area. Hanson’s own Murphy Business Park in nearby Stafford is achieving leases at or near the $1.00 per square foot market rate on inferior metal construction, demonstrating that the demand and rent ceiling exist today. The current leasing team has already achieved rates at or above our leasing assumptions within the park as well, further solidifying the mark-to-market opportunity.

 

With 61,750 square feet expiring during the two-year hold period, the partnership has a well-timed and systematic opportunity to replace below-market leases with new tenants at current market rents. A targeted $945,000 capital improvement and tenant improvement program will be deployed across all three buildings to modernize the physical product, elevate the tenant experience, and position the portfolio as the premier value option in the submarket. This refresh, combined with the portfolio’s favorable lease roll schedule, is projected to drive just under 20% NOI growth from acquisition to stabilization.

 

The combination of a deeply below-replacement-cost basis, durable masonry construction, a near-term lease roll, and a modest but high-impact capital program creates a risk-adjusted return profile that is straightforward to underwrite and compelling to execute.

Minimum Investment $50,000

Key Information

  • Purchase Price: $20.55 Million
  • TI/Leasing Budget: $945,109
  • Equity Required: $10.34 Million
  • Close of Raise: 6/31/26
  • Stabilized Cash on Cash - Institutional Class 7.02
  • Stabilized Cash on Cash - Investor Class 4.91
  • IRR: 12.73%
  • Equity Multiple: 1.26
  • Purchase Yield | Stabilized Yield: 6.00 | 6.90
  • Estimated Loan Term: 5 Years
  • Fixed | Variable Rate: Fixed
  • LTC: 60%
  • Estimated Loan Rate: 6.00%
  • Estimated Hold Period: 2 Years
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Property Details

  • Total Building Size: 144,810 SF
  • Lot Size: 10.43 Acres
  • Market: Houston Texas
  • Freeway Access: Beltway 8, HWY 69
  • Year Built: 1979
  • Construction Type: Masonry

Business Plan

Point West Business Park

10161, 10165 & 10175 Harwin Dr, Houston TX 77036

The business plan is built around a targeted physical repositioning of all three buildings, executed in coordination with the portfolio’s lease expiration schedule to maximize the impact of capital deployed and minimize downtime between tenancies. With 61,750 square feet rolling during the two-year hold, the partnership has a direct and time-efficient path to capturing market rents across a significant portion of the portfolio without requiring speculative lease-up or meaningful occupancy risk.

The $945,000 capital improvement and tenant improvement budget will be allocated across exterior and interior scopes at all three buildings. Exterior improvements will include full property repaints, upgraded monument and suite signage, and comprehensive asphalt seal coating and re-striping. These improvements are highly visible, cost-efficient, and immediately impactful in attracting prospective tenants who are often making leasing decisions based on a first drive-by impression. A clean, well-maintained exterior signals active ownership and sets the tone for the quality of the tenancy.

Interior bay upgrades will be executed on a rolling basis as leases expire, with each suite delivered in a move-in-ready, modernized condition. Improvements will include a full whitebox warehouse finish, new LED lighting throughout, LVT flooring in office areas, fresh interior paint, and fully renovated bathroom finishes. The goal is to remove all friction from the leasing process by delivering a product that tenants can occupy immediately without requiring their own capital outlay, which shortens lease-up timelines and reduces the need for outsized tenant improvement concessions.

The leasing strategy will focus on re-tenanting rolling suites at an average rate of $1.00 per square foot NNN, the rate the surrounding market is actively supporting. The competitive advantage here is meaningful: the Harwin Drive portfolio offers masonry construction, a superior physical product relative to the metal building inventory that dominates nearby supply, at a rental rate that is in line with or below comparable alternatives. This quality-to-price relationship gives the leasing team a clear and defensible story with prospective tenants and brokers active in the corridor.

At the conclusion of the two-year business plan, the portfolio will be presented to the market as a fully refreshed, stabilized multi-tenant industrial asset with a diversified rent roll, institutional-quality finishes, and a NOI that reflects just under 20% growth over the in-place figure at acquisition.

Market Analysis

Why Houston Industrial

Houston is the fourth-largest city in the United States and home to one of the most active and diverse industrial markets in the country. The Houston Metro industrial market has demonstrated consistent resilience and growth, underpinned by the region’s position as a global energy hub, a major port and logistics gateway, and a rapidly expanding base of light manufacturing, distribution, and business services tenants. Population growth, business-friendly tax policy, and a low cost of doing business relative to coastal markets continue to attract new businesses and fuel sustained demand for functional, well-located industrial space.

The Harwin Drive corridor sits within the Westheimer/Harwin trade area, one of Houston’s most established and densely occupied commercial and industrial districts. The submarket benefits from exceptional accessibility via Beltway 8 and Highway 69, providing tenants with efficient connectivity to the broader Houston highway network, Bush Intercontinental Airport, and the Port of Houston. The corridor’s dense tenant base spans a wide range of industries including wholesale trade, light manufacturing, business services, and distribution, providing a deep and diverse pool of prospective tenants for any vacancy that arises.

Multi-tenant industrial vacancy in the Houston Southwest submarket has remained relatively tight, with functional, well-located small bay product consistently outperforming broader market averages. Demand for small and mid-bay industrial space in Houston has been driven by a growing small business ecosystem, the continued reshoring of light manufacturing activity, and the expansion of last-mile and regional distribution operations that require affordable, accessible space close to the population core. This demand profile aligns directly with the Harwin Drive portfolio’s bay configuration and location.

 

Location

Point West Business Park

10161, 10165 & 10175 Harwin Drive in Houston Texas 77036

Why Point West Business Park Makes Sense

  • Clear Upside: Significant MTM and NOI Growth
  • Below Replacement Cost: Irreplaceable basis of $142/SF
  • Infill Location: Strong SW Houston Location
  • Attractive Bay Sizes: Average bay size ~6,582 SF
  • Premium Construction: Masonry Built

Returns Overview

Underwriting Assumptions

  • Replacement Rental Rate: $1.00/SF NNN
  • Vacancy Timing Upon Lease Expiration: 8 Months
  • Exit Cap Rate: 6.00
  • Sale Price: $185/SF
  • Deal Time Horizon: 2 Year

Partnership Structure

Distributions and Fees

  • Monthly distributions of operating profits
  • 2.0% acquisition fee
  • 1% asset management fee on Equity Raised
  • 1% disposition fee

Institutional Class

  • Preferred Return of 8% on all cash flow until 8% annualized return is realized.
  • 100% of distributions following the satisfaction of the 8% preferred return will be paid to the General Partner as a “Catch Up” until the General Partner has received an amount equal 2.67% of the aggregate distributions
  • Equity partner with 70/30 split of profits beyond satisfying the 8% Preferred Return and General Partner Catch Up. General Partner will receive a 30% carried interest in the net profits, with the remaining 70% of net profits to be distributed to the Limited Partners
  • Waterfall structure as follows:
  • Investor Preferred Return – 8%
  • General Partner Catch up – 2.67%
  • Pre 13% IRR Hurdle Investor/General Partner Distribution Ratio – 70/30 split
  • Post 13% IRR hurdle Investor/General Partner Distribution Ratio – 60/40 split

Investor Class

  • Equity partner with 70/30 split of profits. General Partner will receive a 30% carried interest in the net profits, with the remaining 70% of net profits to be distributed to the Limited Partners
  • Waterfall structure as follows:
  • Pre 13% IRR Hurdle Investor/General Partner Distribution Ratio – 70/30 split
  • Post 13% IRR hurdle Investor/General Partner Distribution Ratio – 60/40 split

Company Overview

Point West Business Park

10161, 10165 & 10175 Harwin Drive in Houston Texas 77036

At Hanson Capital Group, experience is not just a metric—it’s our foundation. Boasting over 100 years of combined expertise in real estate, we’ve cultivated a reputation for excellence and strategic insight in the market. Our formidable investments, nearing $350,000,000 under management, are a testament to our sustained success. Driving our vision forward is a harmonized team of executives and directors. CEO Chris Hanson, COO Zach Price, Managing Director of Acquisitions Chris Pike, and Managing Director of Asset Management Jim Tainter lead the charge. Together, they craft the trajectory for Hanson Capital Group, ensuring we remain at the forefront of the real estate industry.

Established in 2008, Hanson Capital Group embarked on its mission to become a trusted auction bidding service provider and create a lasting enterprise focused on creating wealth for ourselves and our partners. Aligning with prominent institutions, our dedication and energy quickly became evident, resulting in the acquisition of over 1,500 single-family homes out of foreclosure within an impressive six-year span. However, our sights were set higher. Identifying a unique opportunity to elevate our bidding pursuits, Hanson Capital, LLC was established in 2010 as a state-licensed mortgage bank. Today, Hanson Capital thrives as a leading hard money and bridge debt lender, and, to date, has overseen transactions exceeding $500 million, while consistently maintaining an equity portfolio averaging $40 million.

While our initial investments were rooted in real estate backed lending, in 2010 we began our pursuit of direct investment in value-add multifamily assets. After nearly a decade of that value-add multifamily strategy, and after buying and selling a few thousand apartment doors, our focus shifted in 2018 towards industrial real estate, which continues to be the focus today.

We are now deeply entrenched in industrial real estate within the so-called “Sun Belt”, with a notable presence in strategic areas like California, Arizona, and Texas. The result of this commitment is roughly $350,000,000 in assets under management and over 1.6 million square feet.

Our process is invaluable to our success. All investment decisions are made by our investment committee in accordance with our Investment Policy Statement (IPS). Strategically crafted, the IPS emphasizes our central mission: capitalizing on inefficiencies in real estate to provide sustainable returns through proven and disciplined investment and management strategies. Every facet of the IPS has been intricately designed to demystify our methodologies, underscoring our commitment to transparency, accountability, and the responsible management of entrusted capital. The IPS also guides us in making informed, consistent decisions, helping to mitigate risks, and optimize returns, while ensuring that our actions align with our long-term investment objectives.

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Chris Hanson

Founder

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