NAI Partners Gained Tremendous Momentum in 2015 Marketing TGS Cedar Port Industrial Park
TGS Cedar Port Partners to Begin Constructing Approximately 17 Miles of Rail in 2016
Further Enhance The Largest Master Plan Rail Served & Barge Served Industrial Park in the USA
Houston, Texas - February 26, 2016 - In January 2015, NAI Partners proudly announced their representation of TGS Cedar Port Partners in the marketing of TGS Cedar Port Industrial Park, the largest master planned rail and barge served industrial park in the USA.
TGS Cedar Port Industrial Park (The Park) is located in Chambers County near Baytown, Texas and comprises +/- 15,000 prime acres including the existing industries and warehouses valued at more than $1 Billion. The Park is served by heavy utilities, industrial and commercial transportation infrastructure and a public inland barge dock with heavy haul capability. The Grand Parkway passes through over 4,000 acres of the industrial park. The project is rail served by both the Union Pacific (UP) and the Burlington Northern Santa Fe (BNSF) Railroads. TGS Cedar Port Partners as of December 31, 2015 has 11,079 acres available. Approximately 600 acres in our Phase II area is available for immediate development.
James Scott, Manager of Construction & Infrastructure for TGS Cedar Port Partners, stated "In excess of $22 million was invested in 2015 for drainage, rail and infrastructure improvements. These projects included a major rail maintenance project and the completion of a new drop and pull interchange track capable of receiving and shipping 138 car unit trains. “In addition these improvements open up several thousand acres in the industrial park for future rail and marine served customers. By adding the interchange railroad tracks and the other civil infrastructure improvements, we have been able to improve customer service and increase rail capacity for future development.”
TGS Cedar Port Industrial Park gained significant marketing traction in 2015 and sold rail served acreage to several new developments in the park. A few of the transactions for 2015 are as follows:
TGS Cedar Port Partners sold approximately 68 acres and an existing 312,000-square-foot warehouse to a South American plastics packaging company. Venezuela-based PBP Inc., which provides turn-key plastic resin packaging, bagging, and storage services, purchased property on the north side of the Grand Parkway.
An undisclosed transportation company acquired 33.4 acres from TGS Cedar Port Partners, expanding their exposure and growth in the Southeast region of the US. This group has committed to build a 300,000+ square foot warehouse.
Oasis Travel Center, a full-service truck stop, headquartered in Sugar Land, Texas recently acquired 6.12 acres from TGS Cedar Port Partners. They will soon break ground at the intersection of SH 1405 and the Grand Parkway.
Near year end 2015, TGS Cedar Port Partners sold Houston-based Clay Development & Construction Company, 79.57 acres on Borusan Road and FM 1405. Clay Development & Construction will build a 1,500,000-square-foot rail-served, dock-high distribution complex. Construction on the first building, at 4830 Borusan Road, will begin immediately and is expected to be complete in August 2016.
Clay Development & Construction Company has also acquired an additional 23.35 acres for development of single tenant spec manufacturing facilities located on Cedar Boulevard in the Business Park portion of the Industrial Park.
According to Mr. William F. “Bill” Scott, Managing Partner of TGS Cedar Port Partners “The partnership was encouraged to see a strong finish in land sales for 2015. In our first year of ownership the partnership completed land sales to substantial companies with local, national, and international roots. West Chambers County is a vibrant location for companies to capitalize on the logistical advantages of locating in the Southeast market area near the Houston Ship Channel and both of the Port of Houston’s container terminals. The Mont Belvieu natural gas and petrochemical hub also creates real industrial growth potential. TGS Cedar Port remains one of the few dual rail served industrial developments capable of providing a major industry with a 2-3,000 acre sites with adequate power supply and a pipeline corridor including all the major petrochemical feedstocks.”
TGS Cedar Port is today announcing a series of new projects which will create the capacity for Cedar Port to store additional rail cars. These projects will be backed by commercial guarantees for railcar storage and handling.
William F. “Will” Scott, manager of marketing and logistical development for TGS Cedar Port stated that, “The partnership is committed to significant additional capital investment for 2016, including construction of 40,000 feet of rail in the first phase of developing a total of 90,000 feet of new rail storage capacity by year end 2017. Our goal is to store an additional 1,000 railcars for our industrial park and industry partners by year end. The demand for railcar storage in the Houston market is expanding exponentially due to the availability of low cost natural gas derived petrochemicals in our market area. TGS Cedar Port is committed to expanding infrastructure to serve our customers rail and product handling needs.”
The completion of the Panama Canal expansion and the continued growth within the plastics and petrochemical market coupled with the growth in container shipments through the Port of Houston create an ideal setting for TGS Cedar Port to capture railcar storage, packaging and distribution expansion in the greater Houston market. TGS Cedar Port Partners invite shippers to come grow with us and grow with the greater Houston market.
According to John Ferruzzo, SIOR, Partner and Industrial Division Leader of NAI Partners, “the demand for rail-served sites with access in the park to both the UP and BNSF railroads is very strong and we expect the activity to only get better. The southeast Houston submarket is the strongest in the City for industrial transactions and we anticipate it to stay that way throughout the year.”
John Ferruzzo, SIOR, John Simons and Joel Michael, SIOR, all Partners with NAI Partners represented the seller, TGS Cedar Port Partners, during negotiations of all transactions cited above.