Million SF Houston Industrial Portfolio: Blackstone Sells 1

In Houston, An Ares Real Estate fund has purchased three industrial properties totaling more than 1 million SF across north and northwest Houston.

The seller was a warehouse investment entity affiliated with Blackstone.

JLL Capital Markets represented the seller of the logistics portfolio, which spans six buildings and is 95% leased to 10 tenants. Trent Agnew, Charlie Strauss, Lance Young, Brooke Petzold, and Dawson Hastings of JLL worked on the deal.

The 1,020,722-SF portfolio contains recently constructed buildings of various configurations, including cross-dock, rear-load and front-load designs. Clear heights range from 26 to 36 feet.

The purchased properties consist of: Central Green Corporate Center, totaling 516,134 SF across four buildings at the Hardy Toll Road and Central Green Boulevard near Bush Intercontinental Airport; North Houston Logistics Center Building G, totaling 351,400 SF at 30 Esplanade Blvd. near I-45 and Beltway 8; and West Little York, totaling 153,188 SF on West Little York near North Houston Rosslyn Road in northwest Houston.

Marq Logistics, which represents Ares’ vertically integrated global logistics real estate platform, will manage the portfolio. The buildings are near Houston highways and provide access to major cities across Texas.

“This portfolio presented an exceptional opportunity for investors to establish a significant presence in Houston’s most sought-after industrial submarkets through a single transaction,” said Trent Agnew, Senior Managing Director and Industrial Group Leader at JLL. “With over one million sq ft of premier Class A logistics space, diverse tenant configurations and substantial mark-to-market upside, the NxNW Houston Portfolio allows new ownership to capitalize on the robust fundamentals driving Houston’s industrial market while benefiting from the region’s position as a critical distribution hub serving the broader Texas Triangle.”

The deal follows another major portfolio transaction on Houston’s north side. Atlanta-based MDH Partners recently purchased a nine-building industrial portfolio along Beltway 8. That sale consisted of two buildings at 7220 N. Sam Houston Parkway West and seven buildings at 3403 N. Sam Houston Parkway West.

Based in Los Angeles, Ares Real Estate has approximately $110 billion in assets under management. Ares recently consolidated its global logistics real estate platforms under the Marq Logistics brand. Marq manages more than 600 million SF of properties globally.