Ikea warehouses in massive Baytown industrial park sell to Atlanta-based company
October 15, 2024
Two Ikea-occupied warehouses in Baytown have a new owner.
Atlanta-based real estate investment company MDH Partners acquired Cedar Port Ikea, a two-building, 996,482-square-foot industrial distribution center at 4762 and 4830 Borusan Road in the massive TGS Cedar Port Industrial Park near the Port of Houston.
Houston-based Clay Development & Construction built the warehouses and leased them to Swedish furniture giant Ikea in 2016. The buildings feature 32-foot clear heights, large 190-foot truck courts, ESFR sprinkler systems, trailer parking and future rail capability.
Canada-based Pure Industrial Real Estate Trust had reached a deal to buy the buildings in early 2017 for $63.5 million, the Houston Business Journal reported at the time.
Clay confirmed the deal closed in 2017, though there is no mention of Pure ever acquiring the property in the Chambers County Appraisal District records for either address.
Chicago-based Link Logistics took ownership of the buildings in fall 2021, according to the appraisal district.
Trent Agnew, Charlie Strauss and Lance Young with JLL represented the seller in the sale to MDH Partners, though JLL declined to name its client. Link Logistics was the most recent owner of the property, per Chambers County records.
Clay had originally acquired about 80 acres from TGS Cedar Port Partners LP in 2015 and had initially planned to build three 500,000-square-foot warehouses on the property. In 2018, the company sold about 28 acres to Stream Realty Partners, according to county records. Stream then developed Portside Logistics Center, a 1 million-square-foot, two-building distribution center, on the site.
That project is 75% leased with a recent 432,316-square-foot lease by Gulf Coast Crating.
Its neighbors across the street include Borusan Mannesmann Pipe and Walmart.
The properties are located just south of the Grand Parkway, with fast access to Interstate 10, Highway 225, Highway 146 and Port Houston’s Barbour’s Cut and Bayport container terminals.
“The Port of Houston continues to be a powerful catalyst for the region's industrial real estate market,” Agnew said in a press release announcing the Ikea warehouse sale. “We're seeing continued demand from both new entrants and expanding companies across diverse sectors, all aiming to leverage the area's operational efficiency, abundant capacity, skilled workforce and cost advantages.”
JLL did not make anyone available for additional questions on the transaction.
The 15,000-acre TGS Cedar Port is the largest master-planned, rail- and barge-served industrial park in the United States and fifth-largest industrial park in the world, according to its website.