Fort Worth-based electrical supply company, The Reynolds Co., recently bought nine acres at Pinto Business Park in Greenspoint and plans to build a 130,000-square-foot distribution facility there. The building is expected to be complete in the third quarter of 2014.
Also at Pinto Business Park, a recent ground-breaking ceremony started construction of a 600,000-square-foot distribution center and two spec buildings totally 120,000 square feet each. A deal has already been inked for the larger building, where HD Supply Facilities Maintenance will claim 500,000 square feet.
Development news travels fast, and both the Houston Business Journal and the Houston Chronicle have run stories about the new developments.
Hines also issues the following press release detailing the HD Supply announcement.
Hines Raises Tiltwall Panels at Pinto Business Park
HD Supply Facilities Management Signs On as Anchor Tenant
(HOUSTON) – Hines, the international real estate firm, and its joint venture partners Kohlberg Kravis Roberts & Company, LP and Pinto Real Estate Development, Inc., announced today that tiltwall panels are raised on a Class A, 840,000-square-foot, multi-building logistics development within Pinto Business Park. The project will consist of one 600,000-square-foot, cross-dock distribution facility and two 120,000-square-foot, rear-load distribution buildings.
The partnership also announced that HD Supply Facilities Maintenance, a national supplier of maintenance, repair and operations products, will anchor the project, and has signed a 500,000-square-foot lease within the cross-dock building. The remaining 100,000 square feet in the cross-dock distribution building, and 240,000 square feet of rear-load space is currently available for lease, with scheduled completions in June 2014, and May 2014, respectively.
HD Supply Facilities Maintenance was represented in lease negotiations by Jim Foreman and Beau Kaleel of Cushman & Wakefield. John Simons and Holden Rushing of Studley represented Hines, the building developer, owner and manager.
The HD Supply Facilities Maintenance building will feature top-of-the-market characteristics including 32’ clear height, 52’ x 55’ column-bay spacing, 130’-180’ truck courts, a fully redundant power supply system, and will be constructed to achieve LEED® certification. The rear-load distribution buildings will feature 28’ clear height, gated 130’ truck courts with multiple ingress/egress points and 52’ x 50’ column spacing, allowing for flexible interior layouts.
Hines Managing Director Palmer Letzerich said, “Pinto Business Park offers a range of industrial product types in a superior location, at a competitive price point. The project will cater to the majority of the user group in the Houston market, and is anchored by a name-brand tenant. We could not be more pleased with HD Supply Facilities Maintenance choosing Pinto Business Park for their new home. They are an outstanding addition to the park, and provide further validation of the project’s relevance as a regional distribution hub in the Houston metropolitan area.”
“HD Supply Facilities Maintenance was concerned with a number of issues relating to their relocation — primarily location, access, price, flexibility and timing,” Foreman added. “The Hines team was able to provide the best option for our client in all categories, all within a master-planned, deed-restricted setting.”
Pinto Business Park is the largest, fully entitled, contiguous tract of land located inside Beltway 8 and outside the 500-year floodplain. The business park will offer manufacturing clients the benefits of a large-scale, controlled business park setting, and distributions clients the benefit of a second-to-none location that has frontage and eight access points to the city’s main connections to Houston and its surrounding markets. Tenants will be five minutes from Bush Intercontinental Airport and 12 minutes from downtown. Distribution clients will be only 30 minutes from the Port of Houston and most importantly, able to make same day, up and back deliveries to all of the major metropolitan centers of Texas. When fully built out, the park represents an opportunity of 8,000,000 square feet and a potential investment of more than $900 million.
About HD Supply Facilities Maintenance
HD Supply Facilities Maintenance is a leading supplier of maintenance, repair and operations (MRO) products to owners and managers of multifamily, hospitality, educational and commercial properties; healthcare providers; and municipal and governmental facilities. HD Supply Facilities Maintenance has 43 distribution centers, a fleet of more than 700 delivery vehicles, 27,000 items in stock, and is a business of HD Supply (hdsupply.com), one of the largest diversified industrial distribution companies in North America.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $83.5 billion in assets under management as of June 30, 2013. Since launching a dedicated real estate platform in 2011, KKR has committed over $700 million of equity to 12 real estate transactions in the U.S. and Europe. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR compliments its investment expertise and strengthens interactions with fund investors through its client relationships and capital markets platform. KKR & Co L.P. is publicly traded on the New York Stock Exchange (NUSE: KKR), and “KKR” as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate.
Pinto Real Estate Development, Inc.
Pinto Real Estate Development, Inc., a wholly owned subsidiary of Cockrell Interests LLC serves as a diversified real estate investment and development platform that focuses on strategic real estate investment. Currently, Pinto Real Estate Development, Inc. directly owns and manages over $300 million in real estate assets. Its current portfolio includes large urban in-fill land development, a 450-acre deepwater industrial port focused on coal export and crude storage, and numerous other strategic land holdings and cash flow assets. In addition to strategic one-off deals, Pinto Real Estate Development, Inc. seeks exposure to markets it believes are attractive by identifying and forming relationships with talented managers.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of current projects that are underway, completed, acquired and managed for third parties include 1,283 properties representing more than 516 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments. Currently, Hines manages 378 properties totaling 151.9 million square feet, which includes 84.4 million square feet for third parties. With offices in 111 cities in 18 countries, and controlled assets valued at approximately $25.2 billon, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems. Visit www.hines.com for more information.