MDH Partners has acquired a large industrial property in the South Houston submarket.
The Atlanta-based investment firm purchased South Belt Central Building 4, a 603,000-square-foot lot. The acquisition marks MDH Partners’ entry into the greater Houston market and expands its presence in the Lone Star State to more than 3.9 million square feet.
The newly constructed warehouse is part of Investment and Development Venture’s expansive South Belt Central Business Park, a 3.5 million square foot Class A complex situated on 37 acres at 4851-4861 South Sam Houston Parkway East, NW of Pearland 7 miles.
Its location in the industrial submarket of South Houston provides easy access to major transportation arteries, including Beltway 8 and US Highway 288, which connect the property to the Port of Houston, Galleria, and Texas Medical Center.
The Houston-based development firm completed the second phase of the seven-building business park earlier this year. Five of the seven buildings are already leased, according to the brochure. South Belt Central Building 4 is the largest building in the complex with 442 parking spaces and 196 trailer spaces. JLL agents Trent Agnew, Charles Strauss and Tom Weber represented the seller.
Despite declines in other commercial real estate sectors, Houston’s industrial sector remains strong. According to JLL, the Houston industrial market absorbed 5.5 million square feet of space in the first quarter of 2023. Only 6% of industrial space in the region remained vacant at the end of the quarter.
The Metro South submarket had a more stable vacancy rate at 3.5%, the lowest of the eight submarkets in Greater Houston. The region, which stretches from South Park to parts of Galveston, also has more than 4.8 million square feet of new industrial supply under construction. Hillwood Investment Properties’ 66-acre Beltway66 Logistics Park, one of the largest facilities currently under construction in the Southern region, is expected to be completed 1.2 million square feet of built-up area By December, according to Avison Young.
MDH Partners has been actively acquiring industrial assets across the United States since January, amassing nearly 5 million square feet of space with a portfolio of more than 100 assets. In addition to the Houston acquisition, MDH Partners’ portfolio expansion in Texas includes the acquisition of Fort Worth Logistics Hub in April.
