Houston’s Lake Houston industrial scene just chalked up a big win. Outrigger Industrial has sold one of its two massive Generation Park warehouses and fully leased the other, notching the company’s first disposition in the city. The cross-dock building clocks in at roughly 1 million square feet, while the neighboring rear-load facility totals about 256,000 square feet and is headed for full occupancy by Representative Materials Co. Together, the twin moves highlight how hungry the Lake Houston submarket still is for big-box industrial space.
As reported by Bisnow, Outrigger sold the 1,026,270-square-foot cross-dock facility at 12515 Lockwood Road to an undisclosed technology-focused company. The two buildings sit on an approximately 87-acre site inside McCord Development’s Generation Park. The broader master-planned project spans about 4,300 acres, according to the development’s website at Generation Park.
Leasing win
According to Outrigger Industrial, Representative Materials Co. expanded its original lease and will now take the entire 255,871-square-foot building at 1055 W. Lake Houston Parkway. The firm initially committed to roughly 119,000 square feet in July and plans to use the Houston location to support industrial and data-center projects, the release states.
Financing and development
Outrigger, sponsor of the private REIT Centris Industrial, lined up about $96.9 million in financing tied to the 1.3 million-square-foot Generation Park development, ReBusinessOnline reported. Barings provided the loan, which was arranged with help from CBRE, and the financing was structured to pay off construction debt and backfill lease-up of the project.
Brokers and the buyer
JLL’s Jarret Venghaus, Jeff Venghaus and David Holland represented Outrigger on both transactions, while Richard Quarles, Craig Jones and John Pasta worked on behalf of the buyer. Ryan Fuselier and David Buescher represented Representative Materials Co., according to Bisnow. The outlet notes that the purchaser has only been described publicly as an undisclosed technology-focused company and has not been identified by name.
In its announcement, Outrigger framed the pair of transactions as proof of “strong underlying fundamentals” in the Northeast Houston industrial market, according to the company’s release. The building’s specs do some talking of their own: 40-foot clear heights, 185-foot truck courts and nearly 200 dock doors, all detailed in CBRE’s leasing materials for the cross-dock at 12515 Lockwood Road. Those features help explain why the property drew interest from both a buyer and major tenant; see the CBRE listing for more at CBRE.
