One of Houston's Biggest Sales Ever
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In one of Houston’s all-time largest land sales, TGS Cedar Port Partners purchased Cedar Crossing, an 11,000-acre industrial park (that’s three-fourths the size of Manhattan) across from the Ship Channel in Bayport. Cushman & Wakefield’s Kelley Parker, John Littman, Coe Parker and Tim Thomas repped seller Cedar Crossing LP, a partnership of area investors managed by Charles Iupe. Kelley (pictured above receiving the 2014 NAIOP deal of the year award for his team from Trammell Crow’s Aaron Thielhorn—this deal will certainly put them on the ballot again) has been working on the property since 1990, when his team brought on Charles to purchase raw pastureland and develop an industrial park.
TGS also has a long history at the project; it’s been the rail service provider for Cedar Crossing since 1999, when co-owner Dick Scott negotiated a 20-year railroad lease with USX. It’s unsuccessfully tried to purchase the property twice since, and TGS chairman/CEO Bill Scott says he’s pleased to finally get the deal done. Prior to the acquisition, TGS executed a 10-year extension of a railcar storage agreement with the UP Railroad. Bill’s sons Will and James will manage operation and development of the park.
About 65% of the park remains undeveloped and is available for future expansion. Cushman & Wakefield’s industrial lead for the Americas John Morris says the timing is great for growth at Cedar Crossing—low natural gas prices are driving manufacturing expansions and relocations. The park is already home to Home Depot’s 755k SF distribution hub, Walmart’s 4.2M SF import center (its largest in the US), JSW Steel’s plate and pipe manufacturing facilities, and Borusan Mannesmann’s $148M steel pipe manufacturing facility. Evercore Properties, Craig Cavalier, Boyar Miller and NAI Houston helped TGS in the deal. IBC Bank provided financing.