ATCAP Partners Buys Eight Central Houston Industrial Buildings

ATCAP Partners has acquired an eight-building industrial portfolio in Houston.

The Houston 610 Loop Portfolio was sold by Illinois-based management firm CenterPoint Properties for an undisclosed price and encompasses nearly 1.2 million square feet of industrial space.

Per its name, the portfolio is situated along the Inner Loop, with five properties located near Pleasantville Area on Market Street, and three are just outside the loop on Cannon Street and South Loop East, in the south Houston submarket. All eight are fully leased, according to a news release. Brokers Ryan Thornton, Nathan Wynne, Randy Baird, Jonathan Bryan and Eliza Bachhuber of CBRE National Partners represented the seller.

Industrial space is a hot commodity in the Bayou City. Brennan Investment Group plans to scrap a vacant Greenspoint office building to build warehouse space. And nearly 6.6 million square feet of new supply was added just last quarter, according to JLL. An additional 34 million square feet of industrial projects are currently under development, according to real estate research firm Avison Young.

“As Houston continues to see record-low vacancy rates in prime infill locations, there was significant investor interest in a portfolio of this caliber,” said Nathan Wynne of CBRE National Partners. “The limited supply of industrial product along 610 Loop, and the compelling rent growth potential provides cash-flow stability with upside for many years to come.”

Houston’s central business district, which includes these eight properties, has the lowest amount of industrial space coming down the pipeline of the metro’s seven submarkets. Only 115,000 of the 32 million square feet of upcoming developments are in this submarket, or less than 1 percent of in-development industrial space.

Properties included in the sale are:

8500 Market Street
8530 Market Street
8550-A Market Street
8550-B Market Street
8570 Market Street
3240 S. Loop East
7700 Cannon Street
7703-7749 Cannon Street

Dallas-based ATCAP Partners has been actively expanding its real estate holdings beyond its Texas stronghold. In collaboration with global asset manager Brookfield, ATCAP Partners bought a national industrial portfolio in February 2022 totaling 3.5 million square feet and spanning 51 properties across the Texas Triangle, Denver and Oklahoma City. In November, the firm also acquired 62 parcels of land in Kansas City across 156 acres of commercial, industrial and office space.

Since its establishment in 2009, the firm has carved out a niche by specializing in office and industrial assets situated in prominent primary and secondary markets across the southern and central regions of the United States.