HOUSTON – (Realty News Report) – Triten Real Estate Partners, a national real estate investment, development, and operating company based in Houston, has acquired three industrial distribution properties in Space City with a total of 534,541 SF.
With demand for industrial space Houston warehouse construction has hit record levels in recent years with 29 million SF of new space delivered in 2023, CBRE reported. The construction pace is expected to moderate in 2024 and the market should calm down somewhat from the white-hot conditions.
Triten’s three industrial acquisitions were in West Houston and the Port of Houston – hotspots in the city’s industrial market.
Strategy: Know Your Own Backyard
“The strategic (acquisitions) highlight the company’s commitment to leveraging market knowledge by staying active in its own backyard,” Triten said in a press release.
“A team with in-depth market knowledge like ours at Triten enables us to stay active in current market conditions. We’re not on the sidelines watching,” said Will Hedges, Triten’s Managing Partner of Industrial. “We can be nimble given the right opportunity, setting up assets for a significant upside when tailwinds return, but it all starts with the right location. These submarkets have the best fundamentals on a trended basis.”
West Houston – 200,680 SF
Kingsland 4, a 200,680-SF Class-A rear-load distribution center located in West Houston is 100 percent leased to Pods and Armstrong SCS, a third-party logistics firm. Located near the population center of the Houston Metro, the property is in Houston’s hottest industrial market, leading all others in absorption, signaling active tenant demand looking to utilize the area’s proximity to rooftops.
Port Houston – 333,861 SF (Two Properties)
The 140,275 SF Port 146 and the 193,586 SF LaPorte Distribution Center in Houston’s Port-adjacent industrial hub are both also 100 percent leased to Barsan Global Logistics and Hawthorne Global Logistics respectively. Each benefit from proximity to Houston’s active port, enabling logistic operations to turn a higher volume of containers, moving products faster and cheaper.
“Not only are the three assets in the most institutional submarkets, but the building sizes reach the widest network of tenant requirements in Houston. This helps build conviction in the real estate,” said Keith Gabrielson, Triten’s Industrial Acquisition Analyst.
Houston is coming off a historical run of hot industrial development, leading the nation in industrial absorption over the past two years on the back of strong employment and net migration. Volatile capital market conditions have slowed the pace of new construction, causing many institutional industrial buyers to pause, seeking market clarity. Triten sees a substantial opportunity in buying high-quality industrial assets in areas of town which demonstrate the strongest market fundamentals and a deep tenant demand.
JLL’s Trent Agnew, Charlies Strauss, and Lance Young represented the seller for the port transaction and Lee & Associates’ Taylor Schmidt and Robert McGee represented the seller of the West Houston transaction.
Feb, 5, 2024 Realty News Report Copyright 2024
Image: courtesy Triten
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File: Triten Buys Three Houston Properties