CenterSquare Investment Management and PAGEWOOD have partnered to acquire Gateway Industrial Commons, a 621,000-square-foot portfolio of industrial service facilities (ISFs). These ISFs serve as truck terminals, storage yards for materials and containers, and maintenance facilities for equipment.
The Portfolio comprises of 46 buildings spread across nine properties in the NW submarket of Houston. It caters to a diverse range of tenants in the service industry with spaces ranging from 1,000-30,000 square feet.
Due to high barriers to entry and increasing construction costs in the sector, new Service Industrial inventory is limited. This positions sector fundamentals favorably for the foreseeable future.
CenterSquare and PAGEWOOD plan on addressing deferred maintenance issues while making necessary capital improvements throughout the properties. With improved aesthetics and professional management operations by these two experienced investors,the Portfolio will be able to increase its rental rates significantly aligning them with current market rates. This will drive substantial growth in net operating income.
