Summary

Constellation Telephone Road is a Class-A industrial development in Houston, Texas. The asset will include two state-of-the-art rear-load buildings with 192k sf space on a 20.8-acre site. Cadre was attracted by the opportunity to partner with Constellation Real Estate Partners (the “Sponsor”) to develop this high-quality asset in an extremely accessible location with robust industrial demand. We closed on the land in December 2022 and expect to break ground later in 2023.

Three Reasons to Invest in Constellation Telephone Road

Strong Demand Drivers in a Dynamic Market

Houston consistently ranks among top markets for population growth, driven by its business-friendly environment, affordability, warm climate, low taxes, and strong growth engines in energy and healthcare. The city is also home to the largest container port on the U.S. Gulf Coast. The Port of Houston is the #1 U.S. port by foreign and domestic waterborne tonnage, consisting of nearly 200 public and private facilities.

Superior Accessibility in a Premier Location

Constellation Telephone Road is located in the South Highway 35 submarket, which boasts the lowest industrial vacancy rate among Houston’s 16 submarkets with >20mm sf of inventory at 3.1%. The asset sits at a key traffic artery with convenient access to the Beltway 8 entrance ramp, connecting the suburb of Pearland with the greater Houston MSA. Proximity to Hobby Airport, the BNSF Intermodal, and neighborhoods with both affluent consumers and blue-collar workers provide both consumer demand and a strong employment base. The site’s frontage on Beltway 8 also provides great visibility for tenants.

Experienced Local Development Team

Cadre is partnering with Constellation Real Estate Partners, a Texas-based industrial development and investment management company founded in 2021 by former officers at Prologis and JP Morgan. The firm’s principals have more than 100 years and $20bn of collective development/acquisition/disposition/joint venture experience, with particular expertise in southeastern and southwestern U.S markets.

Cadre has committed to a long-term relationship with the Sponsor, and we are currently working on another industrial project with them.

Attractive Transaction Dynamics

Compelling Returns for Industrial Assets: Industrial real estate is a top-performing commercial property type. Boosted by e-commerce tailwinds, annual industrial returns as of Q4 2022 were 14.6%—more than twice the average commercial real estate return over the same time period.

Constellation Telephone Road

Development Cost

$32mm

Underwritten Hold Period

3 years

Deal Details
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$25,000 minimum investment