HOUSTON–Cushman & Wakefield (C&W) has announced the sale of the world’s fifth-largest industrial park, Cedar Crossing, a 10,897-acre industrial park near Houston. The transaction represents one of the single largest land sales in the history of the Houston area.
C&W represented the seller, Cedar Crossing LP, a partnership of area investors managed by Charles Iupe. The size of the property sold is equal to three-fourths that of New York’s Manhattan Island.
“We’re excited about the variety of opportunities new ownership will bring to the park, not the least of which is a fresh commitment to take the marketing and development of the park to the next level,” Kelley Parker, executive vice president of C&W, told GlobeSt.com.
The C&W team of Parker, John Littman, Coe Parker and Tim Thomas handled the marketing and sale of the site. Parker’s 24-year experience with marketing the property began in 1990 when C&W represented the site for USX Realty Development and convinced Iupe to purchase the project.
Trans-Global Solutions Inc. (TGS), a railroad service/logistics provider, is the majority owner of the buyer, TGS Cedar Port Partners LP. TGS has been the rail service provider for Cedar Crossing since its inception.
With a total expanse of 15,000 acres, Cedar Crossing Industrial Park is considered the world’s fifth largest industrial park and the largest on the Gulf Coast. The Park is located 20 miles east of Houston in Chambers County, directly across the Houston Ship Channel from the Bayport and Barbours Cut container terminals. Approximately 65 percent of the park remains undeveloped and is available for future expansion.
“This transaction comes at a time when low natural gas prices are driving manufacturing expansions and relocations across the U.S.,” says John Morris, C&W’s industrial services lead for the Americas. “We see trade between South America, Asia and the U.S. poised for dynamic growth due to the completion of the Panama Canal expansion in 2015.”
To date, Cedar Crossing has attracted many top-tier companies with significant operations: Home Depot’s 755,000-square-foot distribution hub, Walmart’s 4.2 million-square-foot import center (their largest in the U.S.), JSW Steel’s plate and pipe manufacturing facilities and Borusan Mannesmann’s $148-million steel pipe manufacturing facility. Other occupants include Exel, S&B Engineers, National Oilwell, GE Water, TMK-IPSCO, Century Asphalt, Samson Controls and LS Energy Fabrication.
Cedar Crossing offers dual rail service with considerable rail infrastructure; specifically, 57 miles within the park, with existing storage for over 1,700 railcars.
The park has benefitted from the construction of the Fred Hartman Bridge, the completion of the Grand Parkway and a $50-million investment of public funds by the Chambers County Improvement District I for infrastructure improvements including the Public Barge Dock and its recent expansion. Additional infrastructure improvements are planned by the new ownership and will be announced at a later date.
“This significant transaction is a convincing testament to the Park’s capabilities and infrastructural importance and a ringing endorsement of the Baytown/Chambers County area as an economic powerhouse,” says Parker. “It’s amazing to have witnessed firsthand the growth of the park, in 24 years, from simple pastureland to what it is today.”