Houston industrial park draws spec investors on 47-acre deal

Dayton Street Partners has acquired land it plans to develop into the first truck terminal built on spec at Houston’s TGS Cedar Port Industrial Park.

The deal for the 47-acre site, which came on undisclosed terms, underscores Houston’s growing importance as a logistics hub.

Cedar Port is billed as the largest industrial park with rail and barge service in the U.S. The 15,000-acre facility is adjacent to Houston’s Grand Parkway, Interstate 10, State Highway 225, State Highway 146, and the Port of Houston.

Major retailers such as Home Depot, Floor & Décor, IKEA, Walmart, Vinmar, and Ravago all have major distribution and fulfillment centers at Cedar Port.

Houston’s emergence as a logistics hub has led major real estate investment firms to create separate businesses focusing on the city’s industrial space.

Houston had the third fastest-growing industrial market in the first quarter of 2022. Over the last four quarters, investment in Houston’s industrial real estate market totaled $5.549 billion, a year-over-year growth of 178.8 percent, compared to the national growth of 44.5 percent, according to CBRE

Growth like this prompted CBRE to expand its Industrial & Logistics Capital Markets team in Houston.

Industrial warehouses in Houston and Harris County saw their value increase an average of 19 percent since 2021.

Dayton Street’s speculative facility which is slated to open in the second quarter of 2023,
will total 164,640-square-feet of space that can be built to accommodate office space, a guard shack, a 10,000 square-foot truck maintenance facility and a fueling station.

NAI Partners’ Gray Gilbert, Chris Haro, and Jack Gilbert are the exclusive leasing agents of the property, according to an NAI press release.

Dallas-based Veritex Community Bank is providing construction financing.

The terms and pricing of the deal were not disclosed.