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Americold Launches $127M Metro Houston Expansion

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This acquisition will increase the company’s footprint by more than 10 million cubic feet. The post Americold Launches $127M Metro Houston Expansion appeared first on Commercial Property Executive.

Aerial shot of Cedar Port IKEA in Baytown, Texas. — Last October, another transaction closed within Cedar Port Industrial Park. MDH Partners purchased Link Logistics’ Cedar Port IKEA, pictured above. *Image courtesy of JLL*

Americold Realty Trust has signed an agreement to acquire a cold storage facility in Greater Houston. The investment, including planned expansion and equipment upgrades, totals $127 million.

The warehouse is inside Trans-Global Solutions’ Cedar Port Industrial Park—the largest master-planned, rail-and-barge-served campus in the U.S.—which encompasses more than 25 million square feet of existing and underway industrial and manufacturing space. The park is in Baytown, Texas, about 27 miles east of the Port of Houston.

Through this purchase, Americold will add about 35,700 pallet positions to its U.S. cold storage warehouse portfolio, which according to the firm’s annual report, comprised some 4.5 million pallet positions as of December 31, 2024.

The 2022-completed warehouse has a capacity of 10.7 million cubic feet, which is set to bolster Americold’s nationwide footprint, which encompassed roughly 1.2 billion cubic feet as of December 31, 2024, according to the same source. What’s more, the acquisition will include about 16 acres of land to be used for potential future development.

Americold’s recent contract with one of the world’s largest retailers is the catalyst behind this investment, according to a company statement.

Industrial deals in metro Houston

Greater Houston’s industrial transaction volume clocked in at $724 million in 2024, according to Partners’ latest quarterly report. The average cap rate for the 719 assets that changed hands last year was 7.9 percent.

Notably, the metro’s average industrial monthly rental rates climbed 2.6 percent year-over-year to $0.79 per square foot in December, marking a record-high for the market’s industrial sector, the same source shows.

In October, another transaction closed within the Cedar Port Industrial Park. MDH Partners acquired Link Logistics’ Cedar Port IKEA, a 996,482-square-foot, two-building industrial campus.

Investors were also active in metro Houston’s cold storage market last quarter. Scout Cold Logistics divested a fully leased, 248,240-square-foot asset in the Bayport South Business Park, according to Partners’ report. The park is about 18 miles southwest of Cedar Port.

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