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Houston

Massive logistics projects planned amid construction slowdown

Phelan Development and Constellation Real Estate plan major projects in Houston

Phelan Development's Jeffrey Phelan and Constellation's Hien Le with rendering of PortNorth 59
Phelan Development's Jeffrey Phelan and Constellation's Hien Le with rendering of PortNorth 59 (Phelan Development, Constellation Real Estate Partners, Getty)

Two industrial projects are expected to increase Greater Houston’s booming logistics market by another 1 million square feet, as industrial construction dipped 40 percent in the second quarter.

Phelan Development plans to build a 584,000-square-foot speculative industrial complex in Humble.

The California-based firm expects to begin construction in December on PortNorth 59, with buildout expected in spring of next year. It will span two buildings atop a 35-acre site on Rankin Road and Highway 59.

The first building will span 125,000 square feet, while the second will span 459,000 square feet. Construction of the two buildings is expected to cost $25 million, though price estimates are subject to change. Washington-based Calvin J. Coatsworth Architect is listed as the design firm for the project.

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Meanwhile, Constellation Real Estate Partners plans to build a 537,000-square-foot warehouse at 6401 North Eldridge Parkway, in the northwest submarket.

The project has an estimated $30 million price tag. Local firm Seeberger Architecture is expected to design the building, which is expected to be completed by December 2024. 

This project won’t be the Dallas-based firm’s first foray into the Houston market. Last year, it purchased a 33-acre lot on South Post Road in partnership with a real estate fund advised by Crow Holdings for the development of Constellation Post Oak. It is expected to be completed this winter. Another project the firm started last year, Constellation at Telephone Road, is scheduled for a fourth quarter completion. 

Industrial construction in Greater Houston dipped in the second quarter by 40 percent, falling from a record 7.7 million square feet of projects that started in the first quarter, to 4.3 million in the second quarter, according to JLL. 

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Constellation Real Estate PartnersPhelan Development
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HoustonLogisticsTexas