Sunwest Expands into Industrial Sector

Sunwest Real Estate Group, long known for its North Texas office holdings, is pivoting into industrial real estate with its first industrial acquisition—a 36,000-square-foot shallow-bay warehouse in Arlington, Texas, purchased in partnership with AKRE Partners. The acquisition marks a strategic expansion beyond Sunwest’s traditional office focus and reflects a broader recalibration toward industrial assets with strong demand fundamentals.

“The market knows us as being an office building owner that is focused on value-add acquisitions that take something tired and in need of a little work and stabilizing the occupancy,” Marc Grossfeld, founder and managing principal of Sunwest Real Estate, told CoStar News in an exclusive interview.

“There’s limited capital available for office building acquisitions,” Grossfeld added. “I do think there’s a trend of capital coming back into the office sector slowly, but they are spending their time evaluating office acquisitions,” which is why Sunwest is “focusing on industrial, where we can play and leverage our team’s operational expertise on how best to improve the space and work to stabilize it.”

According to CoStar News, Sunwest identified shallow-bay industrial as an attractive entry point due to strong tenant demand, operational similarities to suburban office assets, and opportunities for hands-on asset management. The firm views these smaller-scale industrial properties as a natural extension of its value-add approach, particularly in infill locations where supply remains limited.

The Arlington acquisition represents Sunwest’s first step in what CoStar describes as a deliberate and disciplined approach to industrial investment, positioning the firm to capitalize on evolving market dynamics while maintaining a focus on fundamentals-driven growth.

Source: CoStar News