Dirt is finally moving at the corner of North Heideke Street and Freeport Way in Seguin, where developers have broken ground on the first phase of a new industrial park aimed at capturing the region's booming warehouse demand. Partners Real Estate announced that its development arm, Partners Development, has officially started construction on Phase I of Seguin Commerce Park, with the first buildings expected to deliver by May 2027.
According to the City of Seguin's Facebook announcement, Phase I consists of two 40,000-square-foot buildings located at 1781 and 1775 North Heideke Street. The city's post describes the broader vision for the site as an eight-building, 234,600-square-foot industrial park once fully built out, though Partners Real Estate is a private partnership-led, fully integrated commercial real estate firm that has not detailed every stage of that buildout publicly.
The square footage described in the city's announcement doesn't quite match an earlier figure circulated by one of the project's financiers. In August, Palladius Capital Management said it had provided construction financing for the initial phase of Seguin Commerce Park, describing the first two buildings as front-load Class A industrial space totaling 80,000 square feet and calling it the first phase of what it pegged as a 235,000-square-foot campus, according to Yahoo Finance. The discrepancy between that figure and the city's 234,600-square-foot estimate hasn't been resolved by either party.
Tracing the Project Back to a 20-Acre Land Buy
The groundbreaking caps a process that stretches back roughly a year and a half. Partners Development announced the acquisition of approximately 20 acres of light-industrial-zoned property in Seguin on February 7, 2025, according to a press release from Partners Real Estate. At the time, the company said it planned to build several flex-industrial buildings using its prototype design, with individual structures ranging from roughly 17,500 to 40,000 square feet.
The Seguin Economic Development Corporation reported that the land sits near the interchange of I-10 and North Highway 123, a stretch of the city that has seen growing interest from industrial developers chasing the area's population surge. Seguin's population grew approximately 32% between 2020 and 2024, per the same Yahoo Finance report on the Palladius financing, a growth rate that developers have repeatedly pointed to as justification for new warehouse and flex-space construction in the area.
Filling a Gap in Small- and Mid-Bay Industrial Space
Partners Development framed its original 2025 land purchase as a direct response to increasing demand for flexible industrial space in what it called a rapidly growing and underserved submarket, per its press release. Palladius echoed that reasoning in August, with its financing announcement describing the project as positioned to meet growing demand from small- to mid-bay industrial users in the region, the Yahoo Finance report noted.
Permit filings reviewed by Zabalist offer a closer look at what's actually being built. One filing describes a single-story, ground-up building encompassing 40,141 square feet at 1781 North Heideke Street, while a second filing for a building at 1775 North Heideke Street describes a similarly sized 40,141-square-foot, single-story prefabricated metal building with a specified office area. It isn't clear from the available records whether those two permitted buildings are the same structures described elsewhere as the 80,000 square feet of Phase I space.
Seguin's industrial build-out mirrors activity elsewhere along the I-35 corridor. In nearby San Marcos, Method Architecture has described its work on the Central Texas Industrial Park as a new 175,000-square-foot industrial development, another sign of the broader appetite for warehouse and flex space stretching across Central Texas.
For now, the timeline for Seguin Commerce Park points to a May 2027 delivery for the first two buildings, per the city's announcement. No tenants, lease agreements or job projections have been disclosed for the site, and the terms of Palladius Capital Management's construction financing have not been made public.
