Provident Industrial is launching construction on Eastex 59, a 740K SF industrial project near George Bush Intercontinental Airport.
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Provident Industrial, a division of Dallas-based Provident, closed financing for Eastex 59 in late March, with Junction Commercial Real Estate serving as the capital partner.
Eastex 59 will offer four buildings with units from 148K SF to 224K SF, ample trailer storage and parking, efficient circulation, and visibility.
“This project is designed to meet the rising logistics demand supporting increased air cargo at IAH,” Provident’s Houston Office Director Christen Vestal said in a release.
Vestal is the lead developer on the project, working alongside Provident analyst Titus Jeffries.
This project is Provident’s sixth joint venture with Junction, which serves as the capital partner on more than 3.2M SF of industrial developments with Provident, the release states. Provident has 8.2M SF of industrial product under construction or predevelopment across Texas, Arizona and the Carolinas.
Provident's continued building of speculative industrial developments comes as Houston has a moderated construction pipeline of 16.7M SF, according to Partners Real Estate. There were 3.6M SF of industrial deliveries in the first quarter, up 46% from the prior quarter but down 51% year-over-year.
The lack of entitled land in the Houston area is constraining supply growth and helping to maintain market equilibrium, according to Partners’ report. Industrial developers also report difficulty securing financing for new projects.
Provident has the advantage of being privately owned and well-capitalized, meaning it can take recourse loans, Vestal said of the firm’s ability to acquire land and initiate development.
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