NorthPoint Development plans to develop a 2.5 million square meter industrial park planned by the master.
HOUSTON – While the purchase price was not disclosed, a 190 acres acquisition suggests something big. NorthPoint Development LLC grabbed the US location 90 and Uvalde Road in what is allegedly the largest transaction for developed land since the beginning of the year. The seller was Sowell Equities-Forestwood LP.
Michael Keegan of NAI Partners, a partner in the company's industrial group, represented the seller on the transaction.
"We couldn't be more pleased with the results of this sale," said Jamie Cornelius of Sowell Equities. “Michael did an excellent job of marketing this property for us. What started as 337 acres of raw land turned into a salable investment opportunity thanks to the efforts of Michael Keegan and NAI Partners to parcel it out and sell the sites to highly skilled users and developers. Ultimately, we were incredibly pleased to find an excellent buyer for these 190 acres who will help further bolster Houston's rapidly growing and dynamic sales sector by transforming the land into a state-of-the-art industrial park. "
NorthPoint Development plans to develop a 2.5 million square meter, seven-building industrial park on the site called the NorthPoint 90 Logistics Center. Blake Gibson and Ryan Byrd of Colliers International represented NorthPoint Development in the sale of space and will market the project for rental.
"This was one of the last large desirable and developable contiguous land locations of this size within the Belt," Keegan told GlobeSt.com. "The sale further underscores Houston's development into a major industrial distribution center."
According to the latest industry report from NAI Partners, the record pace of the new multi-tenant Class A industrial distribution product, which goes online quarterly in 2019, is astounding. This has increased the vacancy rate by around 3 percentage points.
Given Houston's population growth and the ever-increasing demand for last mile delivery of goods, it is conceivable that the Houston industrial market will continue to absorb the product as it has before. How long it will take remains to be seen, thinks NAI Partners.
Developed land prices continue to rise dramatically as large institutional industrial developers compete for prime locations, particularly in areas inside and outside the entire Beltway 8 corridor. This has led to rising rental prices for industrial buildings. The Beltway 8 and Loop 610 areas now have many infill land areas, underscoring the transition from industrial to mixed-use developments with increasing relocation to urban areas, the report said.