Rycore Capital Sells 101,584-Square-Foot Flex Industrial Property in Houston at 61% Premium

HOUSTON — Rycore Capital has sold Beltway 249 Business Center, a 101,584-square-foot flex industrial property located at 15825 State Highway 249 in northwest Houston, the firm announced Sept. 3. The transaction was completed through a joint venture and represents approximately a 61% premium to the firm's August 2023 purchase price.

Transaction Overview

The property, situated near the intersection of Beltway 8 and SH 249, is a multi-tenant, small-bay flex industrial park built in 2009. The corridor serves the Energy Corridor, US-290, Tomball, and Bush Intercontinental Airport trade areas, positioning the asset within one of northwest Houston's established distribution and flex submarkets.

Rycore Capital structured the deal as a joint venture and provided a turnkey suite of services to the venture, including asset management and property management throughout the hold period. Adrienne Collins of Porter Hedges LLP represented the seller as legal counsel. The sale marks the first of two investments in the joint venture to be realized, with the second asset's business plan still ongoing.

Value-Add Business Plan Execution

During its ownership, Rycore Capital executed a value-add strategy centered on lease restructuring, rent growth, and targeted capital improvements. The firm converted tenants from gross leases to triple-net (NNN) lease structures, shifting operating expense responsibility to tenants and improving net operating income stability — a common repositioning approach in multi-tenant flex industrial assets. Rycore also increased base rents toward market levels over the hold period.

Capital improvements at the property included exterior painting, HVAC upgrades, and concrete and awning repairs.

Northwest Houston flex asking rents run approximately $7.80 to $8.20 per square foot annually on a NNN basis in the Beltway 8 and US-290 corridor, above the Houston citywide average. Houston industrial properties broadly traded at an average of around $143 per square foot with average cap rates near 7% in the current market environment, providing context for the asset class in which Beltway 249 operates.

Ahead of Schedule

Sydney Wright, Director of Capital Formation at Rycore Capital, said the early exit reflects the value the team created at the property level.

"We are pleased to see another successful industrial deal go full cycle. Beltway 249 is the first of two investments in this joint venture to be realized. Monetizing it more than a year ahead of our original business plan is a direct result of the value our team created at the property, and it lets our investors capture that value without the execution risk of a longer hold. We look forward to executing the remaining business plan at our second asset."

Rycore acquired the asset in August 2023 and completed the sale in 2026, representing an approximately two-to-three-year hold. The firm described the transaction as having gone "full cycle," underscoring the early realization relative to the original investment timeline.

About Rycore Capital

Rycore Capital LP is a Houston-based real estate investment manager with approximately $413 million in assets under management. The firm focuses on acquiring, leasing, and managing income-producing properties across value-add, core-plus, and core return profiles. It serves high-net-worth individuals, family offices, and institutional investors through two platforms: Fund Management and Direct Investment Advisory. The Beltway 249 Business Center disposition is consistent with the firm's value-add industrial strategy in the Houston market.

Sources: Rycore Capital