Hines JV to Expand Pinto Business Park in Houston

The company is developing a 600,000-square-foot build-to-suit facility, which will serve as the primary distribution operation for Emser Tile in the South Central U.S.

Pinto Business Park in Houston
Pinto Business Park in Houston

A joint venture between Hines, Kohlberg Kravis Roberts & Co. LP and Pinto Real Estate Development Inc. is developing a 600,000-square-foot build-to-suit cross-dock distribution facility for Emser Tile Inc. within Pinto Business Park in Houston.

“We are honored that Emser Tile has selected Pinto Business Park as its home for this mission-critical facility that will serve roughly 35 percent of the U.S.,” Charlie Meyer, Hines’ managing director, said in a prepared release. “This is an excellent addition to our park’s market-leading tenant roster, and is also Hines’ fifth build-to-suit in Houston in the past four years.”

The build-to-suit facility will feature a 36-foot clear height, 500-foot building depth and 52-by-55 feet column spacing. It will serve as the company’s primary distribution operation for the South Central U.S., and is designed for Emser Tile to achieve greater efficiencies and economies of scale in its operations.

“Emser Tile is growing rapidly, and we are excited to increase our capacity by opening a new distribution center in Houston—a core component to our operational success,” Barbara Haaksma, Emser Tile’s vice president of marketing, said. “Emser Tile is known for unparalleled service, and this new facility will help us continue to provide our expansive tile and stone offerings to our growing customer base efficiently.”

Construction is already underway by ArchCon Construction, and the development is planned to be ready in the second quarter of 2018.

Houston’s largest business park

Originally planned in 2012, Pinto Business Park is the largest development-ready business park in Houston. The Park has become home to more than 4 million square feet of industrial and logistics users and its constructed square footage has increased to 800,000 square feet per year over the last four years.   

Jarret and Jeff Venghaus of JLL represented Emser Tile in the transaction, while Hines was represented by Beau Kaleel of Cushman & Wakefield.

“Houston’s strong population growth has created increasing demand for consumer durables and building supplies,” said Jeff Venghaus, JLL’s executive vice president in Houston. “As a leading provider of tile and natural stone, Emser’s business has followed the growth of Houston. Their new location at Pinto Business Park will provide them with a high-quality, well-located distribution center to support their regional satellite operations, grow their business and continue to provide best-in-class products and service to their clients.”

Hines has been active in the area, tripling its footprint in the metropolitan Houston industrial market with the purchase of the 2.2 million-square-foot Underwood Distribution Center in La Porte, Texas. 

Image courtesy of Hines