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News
January 5, 2021
Dayton Street Partners paid an undisclosed amount to acquire 5800 Mesa Drive and is planning to invest in a complete renovation of the structure.
A Chicago-based real estate investment firm has made its first local property purchase with the acquisition of a 500,000-square-foot logistics center in northeast Houston.
Dayton Street Partners paid an undisclosed amount to acquire 5800 Mesa Drive and is planning to invest in a complete renovation of the structure, according to a news release.
While the terms of the deal were not disclosed, including the name of the seller, the property was valued at $858,014 as of Jan. 1, 2020, according to Harris County Appraisal District records.
“As a fast-growing U.S. logistics hub, Houston is a top target for us,” Dayton Street Partners Managing Principal Howard Wedren said in a statement. “This was a great opportunity to capitalize on increasing demand in the market and is part of a larger corporate strategy to invest in well-located, logistics-related real estate assets in Texas and throughout the U.S.”
5800 Mesa Drive, which is off of U.S. Highway 90 Business northeast of the Interstate 610 Loop, came equipped with a 333-door truck terminal and a 33-bay maintenance facility on a 90-acre parcel of land.
Dayton Street Partners is planning a multimillion-dollar renovation of the terminal, as well as the development of 25 acres, which will be used for improved, lighted and secured trailer parking. The company said it has seen a growing demand for trailer parking both in Houston and in other major markets in the United States.
Dayton Street Partners said it plans to continue seeking out investment opportunities in Houston as well as the rest of Texas.
Even amid the Covid-19 coronavirus pandemic, Houston’s industrial properties have remained in high demand over the past year.
During the third quarter of 2020, just over 1 million square feet of industrial space was absorbed in Houston, bringing the year-to-date absorption total to 7.5 million square feet. In all, about 18.5 million square feet of industrial space has been delivered in 2020, according to a recent report by Los Angeles-based CBRE (NYSE:CBRE).
And there are a few signs that the industrial sector is going to slow down anytime soon.
“Market observers expect companies looking for space will continue to seek new product,” CBRE said. “Additionally, historically low interest rates are creating new opportunity for owner-occupier building purchases.”