Pagewood has teamed up with CenterSquare Investment Management to acquire nine industrial properties in Houston.
Houston-based Pagewood’s first institutional joint venture, with Philadelphia-based CenterSquare, acquired the Gateway Industrial Commons, a portfolio of industrial assets totaling 46 buildings situated off Beltway 8, within the metro’s Northwest corridor, the city’s growing population center.
Local firm HRES Group was the seller. Financing was secured from Minnesota-based commercial real estate investor Northmarq. The purchase price wasn’t disclosed.
The portfolio, totaling 621,400 square feet and spread over more than 34 acres, includes two nine-building complexes, at 1500 Brittmoore Road and 6100 Brittmoore Road, which are the two largest properties in the portfolio. The other properties included in the acquisition are:
- 1656 Townhurst Drive
- 1330 Sherwood Forest
- 1411 Upland Drive
- 1771 Upland Drive
- 6989 West Little York Road
- 4125 Hollister Street
- 4041 Hollister Street
Partners Real Estate was tapped to lease the portfolio, branded as Gateway Industrial Commons.
The joint venture plans renovations, including mechanical equipment enhancements, facade renovations and landscape improvements, according to a news release.
Industrial development has slowed in Houston, as rising construction costs have constricted the market.
Construction starts declined last year, plummeting over 50 percent, according to JLL. However, leasing activity surged to its third-highest annual tally on record, with approximately 35 million square feet of leases in 2023. Although vacancy saw a slight uptick in the fourth quarter, reaching nearly 8 percent, analysts anticipate a forthcoming stabilization, with a subsequent decline projected by midyear.
Notable leases in the fourth quarter include Western Post’s 317,000 square feet at 14402 Fallbrook Drive Weiser Business Park, developed by Trammell Crow Company.
Vacancy rates in Houston’s northwest submarket declined during the fourth quarter, logging more than one-third of the metro’s leases, representing 34 percent of the metro’s new leases. The submarket’s growth is due to its expansive available land and ready access to San Antonio and Austin.