Sells for $93 million: Houston Industrial Portfolio

In Houston, Atlanta-based MDH Partners has expanded its Houston holdings with the purchase of a nine-building industrial portfolio along Beltway 8 for $93 million.

Totaling 563,343 SF, the portfolio consists of two buildings at 7220 N. Sam Houston Parkway West and seven buildings at 3403 N. Sam Houston Parkway West in north Houston, as stated by MDH. The purchase price works out to about $165 per SF.

Developed between 2007 and 2013, the shallow-bay buildings house a range of tenants from 6,800 SF to 65,000 SF with an average suite size of 19,425 SF. The portfolio is 94% leased to 26 tenants with a weighted average lease term of 4.5 years.

Georga Rowe led the purchase for MDH, which has retained Stream Realty Partners to handle leasing.

MDH is currently investing its Fund III, a $1.2 billion discretionary fund. The southeastern and southwestern region of the U.S. has been a focus market for MDH, which owns or manages 37 million SF of real estate across 33 markets in 18 states.

MDH has made several big acquisitions in Houston in the last few years. In one of the region’s biggest transactions of 2024, MDH purchased the Cedar Port Ikea distribution center, a two-building complex totaling nearly 1 million SF at 4762 and 4830 Borusan Road in Baytown. In 2023, The company purchased the 603,389-SF building occupied by Penske Logistics at 4902 South Belt Central Drive, east of Highway 288, in 2023.

The company’s latest Houston purchase follows its $165 million purchase of six industrial buildings totaling nearly 1.5 million SF nationwide. The fully leased portfolio consisted of properties in Miami, Atlanta, Jacksonville, Fla., Louisville, Ky., Cincinnati, and Columbus, Ohio.

In Texas, MDH Partners recently developed 71 Logistics Center, a 216,000-SF, Class-A speculative industrial building at the State Highway 71 and Norwood Lane in Austin. The company reported a 101,000-SF lease with an undisclosed tenant last month.

In other recent industrial deals, LBA Logistics purchased Constellation Post Oak, a two-building 424,011-SF industrial property developed by Constellation Real Estate Partners near Beltway 8 in Southwest Houston.