Ridge Development plans to construct a large, build-to-suit facility on 38.38 acres it controls via a ground lease with the Port of Houston Authority.
Ridge Development, the industrial development arm of Transwestern Development Co., announced it has been selected as the master developer for 55.89 acres of Port of Houston Authority land near the Bayport Container Terminal, located at 12619 Port Road in Pasadena, Texas.
As part of the development arrangement, Ridge plans to construct a large, build-to-suit facility on 38.38 acres it controls via a ground lease with the Port of Houston Authority. Ridge has proposed two building options: a 449,280-sq.-ft. (41,739 sq m), cross-dock building or a 450,684-sq.-ft. (41,870 sq m), rail-served facility. Both scenarios include 199 trailer storage spaces, making it one of the most functional distribution centers in the southeast Houston submarket. In the current design, the rail-served alternative includes the ability to store 280 railcars on-site.
“This project will meet the critical demand in the port area for rail-served industrial buildings,” said Kent Newsom, executive vice president of Ridge. “We are in talks with several potential tenants that have shown significant interest in the flexibility and capacity that this site holds.”
Ridge also will oversee development of a 300,000-sq.-ft. (27,871 sq m) cold storage facility for AGRO Merchants Group on 17.51 acres. AGRO, which specializes in third-party cold storage, warehousing and value-added services, has retained Ridge to oversee site due diligence and provide development consulting services for its new facility.
The development site is located less than 1 mi. (1.6 km) from the Bayport Container Terminal. The Port of Houston has plans to construct a new heavy haul road, called Freight Station Road, to provide access from the northeast corner of the site from Port Drive, which is a unique benefit for heavy port users.
“The site represents a rare opportunity to develop a much-needed industrial project within a mile of a world-class container terminal,” said Ben Newell, senior vice president at Ridge. “The location's logistical advantage provides future tenants considerable benefits in terms of drayage costs and supply chain velocity.”
According to the Greater Houston Partnership, the Port of Houston ranks as the largest port in the United States by foreign tonnage for the 19th consecutive year. In terms of container traffic, the Port of Houston is the nation's sixth-busiest, handling 67 percent of the container traffic along the Gulf of Mexico. Houston's industrial market has remained resilient despite a drop in crude prices. At 476 million sq. ft. (44,221,847 sq m), Houston's industrial market is quickly gaining ground on Detroit, the fifth-largest industrial market in the country. During second-quarter 2015, with 2.8 million sq. ft. (260,128.5 sq m) in deliveries, Houston's overall vacancy rate only increased 10 basis points to 4.4 percent.
The Port's Real Estate Department, under the direction of Ricky W. Kunz, chief commercial officer, handled the lease negotiations on behalf of the Port of Houston. RD Tanner, senior real estate director, was the lead negotiating executive for the Port. KKNJ Properties LLC, owned by Curtis Spencer, will handle the leasing of the site for Ridge Development.
About Ridge Development
Ridge Development is the industrial development arm of Transwestern Development Co., a diversified real estate developer with expertise in all commercial property types. Ridge is managed by the former principals of Ridge Property Trust. Ridge Development specializes in industrial development and investment in modern warehouse, distribution and manufacturing facilities throughout the United States and Mexico. Ridge serves North American clients from five U.S. offices and one office in Monterrey, Mexico. The Transwestern Development and Ridge Development teams have developed, constructed and managed more than 138 million sq. ft. (12,820,620 sq m) of industrial and distribution space.