KKR Completes $234M Acquisition of Industrial Logistics Park in Houston

KKR has announced the acquisition of Park 8Ninety, a significant industrial logistics park located in southwest Houston. This purchase, made from Artis Real Estate Investment Trust for $234 million, encompasses a 1.8 million square-foot development completed between 2017 and 2022. The park features 12 buildings designed for various industrial uses, offering a mix of Class A single-tenant and multi-tenant logistics spaces. These buildings have clear heights ranging from 24 to 36 feet, suitable for diverse industrial applications.

Strategic Location and Accessibility

Situated on a 127-acre site, Park 8Ninety benefits from its strategic position with direct access to Beltway 8 and major interstate routes. This location enhances the park's logistical efficiency, making it an attractive option for businesses looking for robust transportation links.

Houston’s Industrial Market Dynamics

Houston's industrial market is experiencing strong demand due to several key factors. According to KKR, the region benefits from a large and growing population, a vibrant port, and its status as the American energy capital. The city is also positioned to capitalize on trends such as re-industrialization and nearshoring, providing significant growth potential.

Alex Olshansky of Zenith IOS highlights Houston's durable demand drivers, emphasizing its strategic importance due to its active port and energy sector. Reggie Beavan from Newmark's Houston office echoes these sentiments, noting the city’s business-friendly environment, low taxes, and minimal regulation as attractive features for investors.

Port of Houston: A Major Logistics Hub

The Port of Houston plays a crucial role in the city's logistics network. As the largest Gulf Coast container port, it handles 73% of U.S. Gulf Coast container traffic. The port's container volume is expected to reach a record 3.4 million containers in 2024. Houston's central location, supported by all three Class I Railroads, further strengthens its logistics capabilities.

Investment Appeal and Market Impact

Houston's industrial market spans approximately 768 million square feet, serving as a distribution hub for major companies like Walmart, Amazon, Home Depot, and DHL. The city’s strategic location and extensive logistics infrastructure make it a preferred choice for companies seeking efficient distribution networks.

KKR's acquisition of Park 8Ninety is part of a broader strategy through the KKR Real Estate Partners Americas III fund. Since 2018, KKR has committed or acquired around $7.5 billion in logistics assets, amassing over 48 million square feet of industrial real estate across major U.S. metropolitan areas. This acquisition underscores Houston's appeal as a leading logistics market, driven by its strong demand fundamentals and investment-friendly climate.