Major Industrial Park Coming to Texas

By Keith Loria, Contributing Editor

SW International Gateway Business Park

Working on behalf of Stonemont Financial Group, Ridgeline Property Group broke ground on the SW International Gateway Business Park, a 540-acre rail-served industrial development project in El Campo, Texas. The project will bring close to 10 million square feet of Class A logistics-oriented industrial space to the market. The owner selected NAI James E. Hanson and NAI Partners to market the upcoming campus.

“With this elevated level of demand has come a strain on the available supply of space, especially nearby major population centers or international ports, like those in the Houston area. In many metropolitan areas, securing available space that can meet the specific needs of logistics-oriented firms can often be quite difficult” Steve Pastor, NAI James E. Hanson’s vice president of global supply chain and ports, told Commercial Property Executive. 

The El Campo project helps solve this need for space through the delivery of up to 10 million square feet of industrial space to this important marketplace.

“This project comes out of a recognition by the Kansas City Southern railroad that there was an opportunity to grow their rail traffic and serve a need in the market through creating a rail-served industrial park,” Pastor added. “Through bypassing the busy and congested port in Houston and leveraging the connectivity of the KCS international freight rail system, firms can optimize their logistics networks and get goods into the hands of their customers in a faster and more cost-effective manner.”

Cross-border transport

Steve Pastor, NAI James E. Hanson

The project’s proximity to the KCS freight rail network enables tenants to directly access Mexico’s Pacific and Atlantic ports as well as distribution hubs in the U.S., such as Baton Rouge, Houston, Austin, and San Antonio. Additionally, the project features frontage on Interstate 69, which allows trucks to move goods from the U.S.-Mexican border all the way to Canada and everywhere in between. “The location also allows for significantly lower development costs as it lies in an area directly outside of Houston but not so close to make land tough to find,” Pastor said. “These lower land acquisition costs and availability make this project possible and the lower cost of building the project will enable tenants to see advantageous leasing rates compared to similar properties near the port.”

Apart from the great Interstate 69 frontage and convenient access to Texas port cities, the KCS railroad offers seamless cross-border transportation in and out of Mexico with customs pre-clearance for faster, lower-cost service than trucks can offer.

Pastor and Susan Fox of NAI Hanson, along with John Simons, Holden Rushing and Chris Haro of NAI Partners’ Industrial Corporate Services Group will be in charge of marketing the industrial park.

Industrial on the rise

Houston’s industrial market has seen tremendous growth in recent years but with that growth has come an increase in leasing rates and a limited amount of available space. “We also are seeing a boom in the petrochemical business and they are searching for locations that enable them to quickly move their products between their production and distribution networks,” Pastor said.

Moreover, the project will solve a large need in the market and provide logistics-oriented firms with the space and accessibility they require to effectively operate and grow their networks in an increasingly interconnected world. 

In November, Ridgeline Property Group and Stockbridge Capital Group disposed of Eagle Park 20/35, a logistical center in DeSoto, Texas. In September, Ridgeline Property Group partnered with USAA Real Estate Co. to develop Park 840 E. Building 100, a 558,600-square-foot Class A distribution/logistics facility in Lebanon, Tenn.

Images courtesy of NAI James E. Hanson