First Tennessee, Nationwide Lend $65M for Houston Logistics Center
First Tennessee Bank and Nationwide have provided $65 million in financing to Houston-based Pontikes Development for the first phase of development on Port 10 Logistics Center, located at Interstate 10 Service Road in Baytown, Texas—just east of Houston, Commercial Observer can exclusively report.
First Tennessee provided the first lien, and Nationwide rounded out the stack with a mezzanine piece. The package was arranged JLL’s Paul House, James Brolan and Jonathan Paine.
The first phase of development on the logistics center includes the construction of four buildings on a 100-acre site, totaling 992,669 square feet. Once complete, the site will feature eight buildings comprising 3 million square feet, spanning 246 acres. The distribution center is near Port Houston, which sees over 241 million tons of cargo move through its docks annually, according to an announcement from JLL.
“This strategic location is a vital starting point for logistics delivery throughout southeast Texas and provides a concentrated location for Port of Houston’s primary outbound container trade with Latin America and Asia. We continue to see investors seeking to invest into the area’s multi-modal logistics hub,” House said in prepared remarks.
The industrial park will have 450 on-site railcar spots and direct access to Union Pacific’s Coady rail yard, which provides additional storage for high-volume rail users, Bisnow reported. The site’s rail system is designed to support the largest containers being shipped today and the biggest rail users in the area.
JLL has been involved in recent deals on industrial warehouse space in and around Houston. On Oct. 9, Commercial Property Executive reported that the brokerage closed on a sale-leaseback of a 133,480-square-foot industrial distribution facility at 7350 Langfield Road.
Pontikes Development could not immediately be reached for comment on the deal. Nationwide could not be reached for comment.