MDH Partners has acquired a massive industrial property in Houston’s south submarket.
The Atlanta-based investment firm bought South Belt Central Building 4, which spans 603,000 square feet. The purchase marks MDH Partners’ entry into the Greater Houston market and increases its presence in the Lone Star State to more than 3.9 million square feet.
The newly constructed warehouse is part of Investment and Development Venture’s expansive South Belt Central Business Park, a 3.5-million-square-foot Class A complex covering 37 acres at 4851-4861 South Sam Houston Parkway East, 7 miles northwest of Pearland.
Its location in the south Houston industrial submarket provides convenient access to major transportation arteries, including Beltway 8 and U.S. Highway 288, connecting the property to the Port of Houston, the Galleria and Texas Medical Center.
The Houston-based development firm completed phase two of the seven-building business park earlier this year. Five of the seven buildings have already been leased, according to a brochure. South Belt Central Building 4 is the largest building in the complex and has 442 parking spots and 196 trailer spaces. JLL agents Trent Agnew, Charles Strauss and Tom Weber represented the seller.
Houston’s industrial sector has remained strong despite dips in other commercial real estate sectors. The Houston industrial market experienced an absorption of 5.5 million square feet of space during the first quarter of 2023, according to JLL. A mere 6 percent of the region’s industrial space remained vacant at the close of the quarter.
The metro’s south submarket saw increased stability with a 3.5 percent vacancy rate, the lowest among Greater Houston’s eight submarkets. The region, which extends from South Park down to parts of Galveston, also boasts more than 4.8 million square feet of new industrial supply under construction. Hillwood Investment Properties’ 66-acre Beltway66 Logistics Park is one of the largest facilities currently under construction in the south region and is expected to complete its 1.2 million square foot buildout by December, according to Avison Young.
MDH Partners has been actively acquiring industrial assets across the United States since January, accumulating nearly 5 million square feet of space with a portfolio comprising over 100 assets. In addition to the Houston acquisition, MDH Partners’ portfolio expansion in Texas includes the purchase of Fort Worth Logistics Hub in April.
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