Developer Breaks Ground on Houston Area’s Largest Spec Industrial Building

TGS Cedar Port Partners, LP (TGS) today announced that it has broken ground on a 1.2 million-square-foot cross-dock warehouse. The spec building will be delivered to the Houston market 2nd quarter 2022. Currently, the building pad and first slab pour is complete. TGS has kept 100% equity in the project and partnered with Bank of Texas on construction loan financing.

Located at 6363 FM 1405, the distribution building will feature highly desirable amenities such as 40-foot clear height, 8” minimum slab, ring road around the entire building and truck court, LED warehouse lighting, ESFR sprinkler system, oversized truck courts, and ample parking for cars and trailer storage. The office space will be built to suit the tenant’s needs, but a 5,000 SF open layout spec office space will allow the tenant to quickly move into the space. Additional land has the ability to be fully fenced and utilized as an area for additional trailer parking, car parking and outside storage. The 1.2M SF building has the ability to accommodate over 1,000 trailer parking spaces and 1,500 car parking spaces.

The building is located in the booming, multi-modal TGS Cedar Port Industrial Park, ideally located for warehousing, distribution, and fulfillment operations. The building’s location on FM 1405 allows prime access to State Highway 99 (Grand Parkway), Interstate 10, State Highways 225 and 146, and the Port of Houston’s Bayport and Barbours Cut container terminals. Industry leaders such as Wal-Mart, Floor & Décor, IKEA, Home Depot, Niagara Bottling, Webstaurant, Ravago and Vinmar all have major distribution and fulfillment centers in TGS Cedar Port Industrial Park, taking advantage of the location and access to abundant, cost-effective labor.

Powers Brown Architecture is the architect on the project and E.E. Reed Construction L.P. is the general contractor. John Simons, Gray Gilbert, Chris Haro with NAI Partners are the leasing agents for the project.

TGS Cedar Port Industrial Park creates a unique logistics opportunity for users to operate in a prime Port location within one of the prominent industrial parks in America, particularly valuable at a time when suitable land positions in desirable areas have continued to become increasingly scarce. With the newly constructed segment of the Grand Parkway, park customers will be able to easily travel to and from the Port of Houston container terminals with no stoplights. Business Facilities 2021 Rankings Report recently ranked TGS Cedar Port #2, Industrial Park, in the U.S. as the largest U.S. Industrial Park with the best infrastructure.

TGS Cedar Port Industrial Park, located in West Chambers County near Houston, Texas, is the largest master-planned, rail-and-barge-served industrial park in the U.S. Situated across the Houston Ship Channel from Bayport and Barbours Cut Container Terminals, Cedar Port spans approximately 15,000 acres of land with over 10,000 total acres available for sale, lease, design-build, and build-to-suit developments. Sites are delivered “turn-key”—fully entitled with utilities, drainage, and detention. The Park is both barge-served and is dual-served by the Union Pacific and the BNSF railroads. Cedar Port can accommodate developments from 5 acres to more than 1,500 acres and currently has over 18 million square feet of industrial and manufacturing warehouses that are either existing or under construction.

Behringer and Orangestar Announce Purchase of McKinney Corporate Center in Joint Venture

Long-time real estate investors Behringer and Orangestar today announced their partnership to acquire commercial office properties across the major metropolitan markets of Texas. Seeking both boutique and value-added properties in urban and suburban locations, the partners have stated a desire to create solutions for niche property sellers grappling with the economic uncertainty of the post-COVID investment environment.

Relying on their combined management expertise, Behringer and Orangestar are evaluating acquisition opportunities that include the full spectrum of asset profiles, from those in need of minor repositioning or credit enhancement all the way to full property redevelopment. Both partners bring over three decades of commercial real estate investment experience through a variety of market cycles spanning that time.

The joint venturers’ first acquisition occurred in July 2021 of McKinney Corporate Center I, a 3-story multi-tenant Class A office property located in the master-planned 2,000-acre Craig Ranch development north of Dallas in McKinney, Texas. The property is adjacent to State Highway 121/Sam Rayburn Tollway and the TPC Craig Ranch golf resort.

Michael Cohen, President and Chief Executive Officer of Behringer, stated: “This partnership is a milestone for both organizations as we plan to capitalize on not only a unique cultural fit amongst our respective teams but also an investment environment primed to produce the kind of return profile our investors desire. We each bring unique talents and expertise to our partnership. These were clearly demonstrated in our combined effort leading to the acquisition of McKinney Corporate Center. The post-pandemic surging Allen/McKinney office market offers great potential for this asset with its superior location and dynamic tenant base. We believe Behringer, our experienced partner Orangestar, and our valued private investors will be well-served with this advantaged, below replacement cost acquisition and its potential for rent growth well into the future.”

Jay L. Post, Managing Partner of Orangestar, added: “Our venture is uniquely positioned to take advantage of the surging Texas investment market as well as our unique ability to perform for sellers with an agile approach others can’t match. The proof point was our ability to deliver for the seller in McKinney. This attractive asset is a welcome addition to our existing strategic commercial office portfolio in the northern Dallas suburbs’ growth corridor. Along with Behringer, we were attracted to the asset’s unique position in the burgeoning submarket and believe it will more than outpace new construction in its ability to serve existing and attract new tenants anxious for the right value in the submarket.”

The property contains approximately 120,234 rentable square feet and is 100 percent leased. Behringer and Orangestar intend to position the building with tenants and the greater Allen/McKinney submarket as the right combination of location, visibility, amenities, and value within this fast-growing section of the Metroplex. The property’s diverse tenant base includes companies from industries representing commercial building supplies, healthcare/insurance tech, home health care, residential mortgage origination, and coworking/executive suites, among others.

Behringer and Orangestar will share responsibilities for all asset management and significant property investment decisions. Orangestar will provide daily property management and Behringer will provide investor relations.

NewQuest Properties Brokers Sale of Class A Retail Center in West Houston

In an off-market transaction, a local private investor has acquired Briar Forest Plaza, a fully leased class A retail project in the heart of the Energy Corridor in West Houston.

The 11,981-sf center at 13346 Briar Forest Dr. is shadow-anchored by LA Fitness and surrounded by master-planned residential developments. Prior to the closing, Russo’s New York Pizzeria and Tulipo Nails extended their leases for the long-term in the seven-tenant project.

“The buyer closed this deal at the contract price. There was no re-trading, which shows the strength of the buyer and the center,” says David Luther, executive vice president of Houston-based NewQuest Properties’ Investment Sales. He and Dakota Workman, associate, represented the buyer of record, Beyond Investments LLC.

Built in 2005 on 1.19 acres, the essential neighborhood center is positioned at the signalized intersection of Briar Forest Drive and Eldridge Parkway in a densely developed retail corridor. A Kroger Signature-anchored project is located on the other side of the six-lane thoroughfare.

“Briar Forest has never had a vacancy since it’s been built. It’s a great location,” says Kelley Workman, a NewQuest vice president, who represented the local seller, F6 Properties Ltd.

Five of the seven tenants are original to the project. “When there was a vacancy, it was immediately filled. It’s always been stable,” says the seller’s broker.

Before marketing got underway, Briar Forest Plaza was offered to one of the investment sales team’s longtime clients. The deal closed 60 days later.

“We knew it was going to be a highly desirable listing,” Dakota Workman says. “It’s a stable mix of national and local tenants with long-term leases in place.”

Adding to the dynamics is Briar Forest Plaza’s close proximity to headquarters and corporate campuses of the Energy Corridor’s top names –Exxon, CTGO, Sysco, Global Santa Fe and BP. Daytime and nighttime populations are strong, with the three-mile trade area home to nearly

JLL Capital Markets Closes Sale of 780-Unit Self-Storage Facility in Austin Area

JLL Capital Markets announced today that it has closed the sale of Park 79 Self Storage, a 780-unit, CubeSmart-branded self-storage facility in the growing north Austin-area community of Hutto, Texas.

JLL worked on behalf of the seller, Park 79 Storage, LLC. Wasatch Storage Partners purchased the asset, which is managed by CubeSmart. This is Wasatch Storage Partners’ fourth Austin-area acquisition this year.

Completed in 2019, the two-building Park 79 Self Storage consists of one two-story building with interior climate-controlled units and ground-level drive-up units and one single-story building with drive-up units. Additionally, the facility has electronic access, secure fencing, 24-hour surveillance, elevator access to the upper floor and a retail-oriented customer service office.

The facility is situated at 3.18 acres at 244 Benelli Dr. in Hutto, a northern suburb approximately 28 miles from downtown Austin. With more than 400 feet of frontage and prominent signage along E. Palm.

Valley Boulevard (Highway 79), Park 79 Self Storage is visible to approximately 35,000 vehicles per day. There are over 63,000 residents with an average household income of over $128,000 within a three-mile radius of the property, and the population is projected to grow at an annual rate of 2.74 percent over the next five years.

The JLL Capital Markets Investment Sales Advisory team representing the seller was led by Managing Directors Brian Somoza and Steve Mellon.

“There is significant development activity within three miles of Park 79 Self Storage, including 4,600 new single-family homes and 200 apartment units in addition to the thousands of existing homes,” Mellon said. “The metro leads the nation in terms of population growth, fueled largely by the strongest rate of in-migration with an impressive 169 people moving to the city every day.”

“Austin is a hot spot for tech companies relocating from all over the U.S., increasing customer demand for self-storage facilities like this one,” Somoza added. “The demographics surrounding Park 79 Storage, LLC are strong, with nearly 29 percent of the 17,670 households within a five-mile radius designated as renter occupied.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.