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New York-based GTIS Partners purchases land for new distribution center in Pasadena
By Florian Martin  –  Reporter, Houston Business Journal

New York City-based commercial real estate company GTIS Partners has acquired a tract in Pasadena to develop a 484,000-square-foot industrial project.

GTIS closed on about 26 acres in the Park 225 commercial business park at Beltway 8 and State Highway 225 on May 8 and plans to break ground on the two-building development in October.

David Claros with Dosch Marshall Real Estate represented GTIS in the land transaction. Phil Arnett and Joe Trout with Arnett Commercial Properties and Curt Stanton with Axiom Advisory Group represented the seller, a division of St. Louis-based Emerson Electric Co. (NYSE: EMR).

GTIS declined to disclose the purchase price. The Harris County Central Appraisal District values the site at more than $9.2 million as of Jan. 1.

Each of the warehouses will accommodate between one and four tenants, the company said.

The 355,000-square-foot cross-dock building will be 510 feet deep and have 36-foot clear height. It will include parking spots for 280 cars and 67 trailers.

The other building will be a 129,000-square-foot rear-load warehouse with 32-foot clear height, 180-foot depth, and 102 car and 26 trailer parking spots.

Estimated completion is summer 2024.

Houston-based Powers Brown Architecture designed the buildings. GTIS has not yet selected a general contractor.

Rendering of GTIS Partners’ planned 355,000 square foot cross-dock building in Park 225 in Pasadena.

It’s the first industrial project in the Houston area for GTIS, which has offices in San Francisco; Los Angeles; Atlanta; Charlotte, North Carolina; Phoenix; Dallas; Sao Paulo; Paris; and Munich.

In Houston, GTIS — together with Pennsylvania-based homebuilder Toll Brothers Inc. (NYSE: TOL) — is developing Sienna South, a 3,800-acre community with 7,500 single-family homes and commercial space within Houston-based Johnson Development Corp.’s Sienna master-planned community.

GTIS also recently acquired a multifamily project in Spring, the company said, though it did not provide details.

Gaurav Sahay, managing director of industrial and logistics, said he hopes the planned distribution center in Pasadena will jumpstart GTIS’s industrial pipeline in Greater Houston.

“Houston is a very large part of our strategy, given its projected population/job growth, increasing container volumes in the port and proximity to near-shoring opportunities in Mexico,” he said in a statement to the Houston Business Journal. “While we will look for attractive opportunities across the Sunbelt, we expect Houston to be a large focus of growing our industrial footprint.”

GTIS emphasized the location at Beltway 8 and Highway 225, near the Port of Houston, as beneficial for prospective tenants.

As of the first quarter of this year, Houston’s southeast submarket is seeing the most development in the region, with 7.6 million square feet of industrial projects in the pipeline, according to Avison Young.

The submarket’s 1.7 million square feet of industrial projects completed ranks only behind the southwest submarket, which saw deliveries totaling 3.06 million square feet in the first quarter.

At 5.3%, total industrial vacancy in the southeast is below the Houston average of 5.9%. The average asking rent, $6.15 per square foot, is also lower than in Houston overall, where it was $8.15 in the first quarter.

In January, Houston-based Transwestern Development Co. completed Bayport 146 Distribution Center, a 454,600-square-foot, cross-dock industrial space near the Port of Houston’s Bayport Container Terminal in Seabrook.

Houston-based McNair Interests and Pontikes Development started construction in March on two warehouses totaling 630,000 square feet in their 246-acre Port 10 Logistics Center in Baytown.

And last month, Philadelphia-based BG Capital and New Jersey-based FreezPak Logistics broke ground on a 281,849-square-foot cold-storage warehouse in the 15,000-acre TGS Cedar Port Industrial Park with plans to add a 262,000-square-foot warehouse after completion of the first.

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