Lexington Realty Trust Buys Industrial Portfolio Near Port Houston
The 44.6-acre portfolio comprises Bayport North Logistics Center I and Bayport North Logistics Center II in Pasadena, as well as Underwood Port Logistics Center in Deer Park, all within Houston’s southeast industrial submarket and about 6 miles from Port Houston.
The newly constructed, single-tenant buildings are fully leased, occupied by trucking and logistics companies. The portfolio was completed in 2019 and features tilt-wall construction, clear heights ranging from 30 to 36 feet, 175 dock-high doors, 10 drive-in ramps, ESFR fire protection, LED lighting, 1.2% office, 262 trailer parking stalls and 399 car parking spaces.
JLL marketed the portfolio on behalf of the seller. The JLL Industrial Capital Markets team was led by Trent Agnew, Rusty Tamlyn, Charles Strauss and Katherine Miller.
Agnew said the portfolio received nearly 20 offers from a wide variety of capital sources before affiliates of Lexington Realty Trust emerged as the final buyer.
“This portfolio was well received by investors, as it allowed them to gain scale in a submarket within Houston that continues to see tremendous tenant demand and has true barriers to new supply with a lack of available land south of the Ship Channel,” Agnew said in a statement.
The southeast Houston submarket, which includes a wide swath of area around the Houston Ship Channel, has an industrial inventory of about 92M SF, according to JLL’s Q1 2021 industrial report. The majority of that inventory is warehouse or distribution space, amounting to 74.5M SF, while manufacturing inventory sits at about 17.5M SF.
Rising demand for consumer goods is driving strong demand for warehouse and logistics space near Port Houston, but there’s limited infill space left available in the area to the south of the Houston Ship Channel. As a result, new industrial development near Port Houston is starting to shift northeast of the Houston Ship Channel, into Chambers County.