John Nicholson, senior vice president with Grubb & Ellis Co.'s Houston office represented the tenant in negotiations, and says Frontier Logistics launched its search for expansion space at the end of 2009. Nicholson, who partnered with Grubb & Ellis executive vice president Doug Nicholson on behalf of Frontier Logistics, adds that rail service was the main attraction of the property at 3005 State Hwy. 225.

"We searched all rail-served buildings with close proximity to both ports (Barbours Cut and Bayport, the Port Authority of Houston)," he tells GlobeSt.com. "When we began looking, there were only three options that were rail served, and this particular location was the most attractive."

Also appealing was the building's location. It's near Frontier Logistics' current location, 250,000 square feet at Port Crossing Commerce Center, 1842 S. 16th St. in nearby LaPorte, TX. Port Crossing is being developed by Chicago-based ML Realty Partners and local National Property Holdings. The newly leased space will be used for packaging and distributing plastic resin.

The two-year-old building once housed Bethel Enterprises of Texas, Ltd. Last summer, Bethel Enterprises declared bankruptcy and defaulted on its lease. Nicholson says the asset remained vacant until Frontier Logistics signed the deal with ING Clarion, which was represented by Brian Gammill and Darryl Noon of Transwestern's Houston office.

The deal had few TIs; Nicholson explains the use requires minimal office space, warehouse space, rail and dock doors, all of which the property has. "This isn't a long-term commitment, but they're happy to be there," Nicholson adds. "Hopefully this will be a long-term solution for them."