DEER PARK, Texas – Inland Diversified Real Estate Trust has purchased the 160,000-square-foot Siemens Gas Turbine Division North American headquarters in Deer Park for $17.8 million.
Completed this year, the manufacturing building houses Siemens Gas Turbine Service Division, a division of Siemens Corp., and is used for the production of gas turbines.
The building is located in the Deerwood Glen Business Park, approximately 17 miles east of downtown Houston, near the Houston Ship Channel. The building has ceiling heights ranging from 34 feet to 70 feet.
Including in the deal is additional land where a 65,000-square-foot could be constructed for future expansion
The building is leased to Siemens Corporation, a subsidiary of Siemens AG, under a triple net lease with a remaining lease term of 10 years.
Joe Cosenza, president of Inland Real Estate Acquisitions and a vice chairman of The Inland Real Estate Group., facilitated the transaction on behalf of Inland Diversified Real Estate Trust.
“This acquisition captures a piece of a rapidly growing industry that we believe will only continue to expand,” Cosenza said. “Siemens AG recently earmarked $1.3 billion to expand the production of gas turbines, and the Gas Turbine Division generated 14 percent of Siemens AG’s total revenue last year. In addition, the division added 3,000 employees over the past 18 months, and Siemens Gas Turbine captures 40 percent of the market share in larger turbines.”