MDH Partners recently closed on its acquisition of Loop 375 Industrial, a three-building, 554,960-square-foot, Class-A industrial portfolio in El Paso, Texas. MDH entered a forward agreement to acquire the development in February 2023. Georga Rowe served as the acquisition lead for MDH Partners and Bret Felberg and Jeff Morris with Colliers represented the seller.
During construction, two leases have been signed at the project. Building 1, consisting of 107,943 square feet is fully leased. A second lease for 200,100 square feet of Building 3 was recently signed. Christian Perez Giese and Andre Roacha with CBRE are leasing the project.
Loop 375 Industrial is situated on 36.68 acres of land and located at the northeast corner of Amesbury Avenue and Joe Battle Boulevard in El Paso. The buildings have premier frontage, visibility and access to Loop 375 leading to the Zaragoza Port of Entry. The property features 191 trailer parks, 230 car parking spaces and clear heights of 32-36 feet. Loop 375 Industrial consists of Building One and Two, which are each 107,943-square-foot rear-load warehouses, and Building Three, an approximately 339,074-square-foot cross-dock warehouse. The development project is located along US Highway 375 – approximately three miles north of I-10, only 14 miles east of the El Paso International Airport and 7.5 miles away from the Ysleta-Zaragoza Bridge, an international port of entry connecting El Paso and Ciudad Juarez, Chihuahua, Mexico. All three buildings were developed on a speculative basis.
The El Paso industrial real estate market experienced record-breaking demand for warehouse and distribution center developments in 2024. According to CBRE, the El Paso industrial real estate market in Q1 2024 recorded 858,752 sq. ft. of net absorption, more than double the Q4 2023 figure. The El Paso Industrial Market opened the year with above average net absorption and strong leasing activity. The completion of pre-leased speculative space and the lease up of recently delivered speculative space was a significant contributor to net absorption during the quarter. The market-wide asking rent continued on a nearly uninterrupted five-year upward trend, reaching a new high. Demand for industrial space also remained far above the historical average, outpacing vacant space in the market. El Paso has also seen a peak of the under-construction pipeline, which will decline throughout the year.
About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $6 billion (80 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com.
