HOUSTON – (Realty News Report) – Houston developer i3 has broken ground on a new cold storage facility in Pasadena, Colliers reported.
Houston Meat Distributors Is First Tenant
Houston Meat Distributors has preleased 62 percent of the first-phase building. Colliers noted that 42,000 square feet remain available in Building 1.
A second standalone cold storage building, totaling 52,000 square feet, is scheduled to begin construction in the third quarter of 2021.
Demand for cold storage accelerated during the pandemic as online grocery sales—especially for perishable, refrigerated and frozen foods—expanded rapidly. As a result, cold storage capacity has been in tight supply.
Located at 1050 Red Bluff Road in Pasadena, the project known as 3° Red Bluff will be developed about a quarter mile north of the Red Bluff/Highway 225 interchange, just east of the 610 Loop.
Insulated Floors to Accommodate Freezers
The 12-acre, Class A cold storage business park will include two cold/frozen storage buildings totaling 148,900 square feet. Features include insulated metal panel exterior, 36-foot clear heights, and insulated floors throughout to support freezer operations. The buildings are designed for customization to serve a range of cold storage needs, from bulk distribution to food processing. i3 expects to deliver 3° Red Bluff in late third quarter 2021.
“The project is well positioned from a location and design perspective to meet demand for freezer and cooler space in the Houston market. Changes in how consumers purchase groceries, food and beverages, combined with a recent shortage of new cold storage supply, have driven significant demand for efficient cold storage designed to meet the challenges grocers, retailers and suppliers face today. 3° Red Bluff is well suited to address those needs and is a strategic addition to the 3° Cold Storage portfolio,” said John Joubert, executive vice president of i3.
Leasing Team with $2 Billion in Transactions
The leasing team comprises Zachary Taylor, John Nicholson and Trey Horne of Colliers. Collectively they bring 30 years of experience and have closed transactions exceeding $2 billion over their careers.
“We are extremely pleased with the level of interest this project has generated,” said Zachary Taylor, senior vice president at Colliers. “Houston has a very limited supply of cold storage product, and 3° Red Bluff is uniquely positioned to support both last-mile delivery and cold/frozen product moving through the Port of Houston.”
The property sits in Houston’s East-Southeast Far industrial submarket, the city’s second-largest industrial submarket with 81.8 million square feet of industrial space. That submarket was roughly 90 percent occupied and absorbed 1.1 million square feet in the first quarter of 2021.
Houston real estate veteran Rene Joubert founded i3 in 2014. Before forming i3, Joubert developed more than 2.5 million square feet of retail, office and professional properties valued at over $750 million, and approximately 2,200 multifamily units worth more than $200 million. i3 currently has active projects in Texas, Florida and Louisiana, and maintains offices in Houston and Miami.
June 25, 2021 Realty News Report. All rights reserved.
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Image courtesy Colliers
file: Frozen foods and perishables