EL PASO, TX – Atlanta-based investment company MDH Partners announced that it has entered into a purchase agreement to acquire Loop 375 Industrial, a three-building, Class A, 554,960-square-foot complex in the city of El Paso, Texas.
NIT Industrial, of Houston, is developing the industrial park, which will be completed in September 2023.
According to NIT Industrial the property is located at US Loop 375 and Amesbury Avenue, and is located in East El Paso Industrial, which has the highest absorption and a 4.3% vacancy rate in this submarket.
“Loop 375 Industrial is a unique opportunity for MDH Partners to acquire high-quality assets in an undersupplied region,” said Rowe, Managing Director of MDH Partners.
Rowe added that the El Paso industrial market has grown significantly with record demand, and once completed, the portfolio will have unprecedented access to the southwest region, including Mexico.
The site was strategically selected because it is located just eight miles from the Yselta-Zaragoza International Bridge connecting El Paso to Ciudad Juarez, which is one of the border’s top manufacturing cities with more than 65 million square feet of manufacturing space with only a 1.1% vacancy rate.
Once completed, the complex will consist of Building One and Two rear-load warehouses, each approximately 108,000 square feet and 32 feet clear height, and Building Three, 339,000 square feet, with a clear height of 36 feet.
MDH Partners reported that the site comprises 36.7 acres and has 191 trailer parking spaces, 230 automobile bays.
Bret Felberg and Jeff Morris of Colliers represented the seller and developer, Houston-based NIT Industrial, in the transaction. MDH Partners also provided NIT Industrial with mezzanine debt to complete construction.
The financing marks the first mezzanine loan made available through MDH Fund II, which MDH expanded to $750 million in equity in October 2022, and is coterminous with a senior loan originated through Veritex Community Bank.
With the pending acquisition of Loop 375, MDH will establish a half-million-square-foot presence in an area that serves as a logistics hub for a thriving industrial market just outside U.S. borders. Near-shoring is driving demand for warehousing in neighboring U.S. Mexican markets such as Ciudad Juarez, where many of the world’s leading manufacturers are present.