HOUSTON – (Realty News Report) – Reich Brothers has acquired the former 1.2 million-square-foot DHL Intermodal Campus in Baytown and plans to redevelop the property for modern industrial uses.
The DHL facility sits within the 15,000-acre TGS Cedar Port Industrial Park, the nation’s largest rail- and barge-served industrial park.
The intermodal campus includes four separate buildings ranging from approximately 200,000 to 400,000 square feet on a 67-acre site. The property features six acres of paved container storage and dual rail service to both BNSF and Union Pacific lines, with on-site rail capacity for up to 350 rail cars.
Reich Brothers, based in White Plains, NY, and Los Angeles, said it will invest substantially to enhance the site’s capabilities for distribution, rail- and port-related logistics, and manufacturing.
“We are committed to preserving the integrity and infrastructure of the site for its highest and best use. The Port of Houston has become the country’s leading region for exports, topping the nation in foreign waterborne tonnage, and demand for turn-key warehouse space in this location will be strong,” said Matt Reich, Vice President of Acquisitions at Reich Brothers.
Reich Plans to Double Its Portfolio in 18 Months
Reich Brothers is a national industrial real estate investment group managing approximately 17 million square feet across the United States. The firm specializes in repurposing underutilized industrial assets for contemporary manufacturing and distribution needs. Over the past year, Reich has significantly expanded its portfolio and aims to double assets under management within the next 12 to 18 months.
In November, Reich Brothers announced the purchase of a 1.9 million-square-foot industrial campus on 53 acres in Middle River, Maryland, for $52.5 million.
The Maryland site is the former Martin Aviation facility and will be repurposed for modern flex distribution and manufacturing. Additional developable acreage is planned for speculative industrial buildings and large-format retail. Reich estimates the project will require more than $30 million in additional investment and will be rebranded as Reich Brothers Aviation Station.
Baytown Hot Spot
The TGS Cedar Port Industrial Park has seen additional activity and investment.
Recently, TGS Cedar Port Partners broke ground on two speculative warehouses in the park: TGS Cedar Port DC 2, a 496,421-square-foot building located at 4407 E. Grand Parkway S., and TGS Cedar Port DC 3, a 150,000-square-foot facility on Nita Way. DC 2 is scheduled for delivery in the second quarter of 2022 and can be expanded from 496,421 square feet to 917,172 square feet. DC 3 is expected to be delivered in the third quarter of 2022 and can expand from 150,000 to 600,000 square feet.
The industrial park’s location provides direct access to State Highway 99 (Grand Parkway), Interstate 10, State Highways 225 and 146, FM 1045, and the Port of Houston’s Bayport and Barbours Cut container terminals, making it an attractive logistics hub.
Last June, Houston-based Avera Companies, a commercial real estate development, construction, and investment firm led by Trey Odom, secured Webstaurant Store as a tenant at Avera’s new Cedar Port logistics development. Webstaurant Store leased 644,000 square feet for its operations.
Jan. 11, 2021 Realty News Report Copyright 2021
Image Courtesy Reich Brothers
For more on Texas development, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins.
File: Reich Buys Huge Site Near Port of Houston. Baytown. Cedar Port.
File: (2) White Plains, NY-based Reich Buys Huge Site. Avera. Martin Aviation. Trey Odom. Baytown. Cedar Port. TGS. BNSF. Union Pacific. Grand Parkway. Barbours Cut. DHL Intermodal Campus