MDH Partners Pays $93M for Houston Portfolio

November 21, 2025

Industrial Houston Investment News More Southwest

The collection totals nine light industrial buildings.

MDH Partners has expanded its Texas holdings with the $93 million acquisition of nine Class A light industrial buildings totaling 563,343 square feet in Houston.

Building at 3403 N. Sam Houston Parkway West in Northwest Houston — The newly acquired portfolio comprises seven buildings at 3403 N. Sam Houston Parkway West in the Northwest Houston submarket. *Image courtesy of Yardi Matrix*

The shallow-bay portfolio comprises two buildings at 7220 N. Sam Houston Parkway West and seven buildings at 3403 N. Sam Houston Parkway West in the Northwest Houston submarket along Beltway 8.

The Atlanta-based firm did not disclose the seller. However, the most recent owner of 3403 N. Sam Houston Parkway West was Prologis, according to Yardi Matrix data. The San Francisco-based industrial REIT acquired the asset from Baron Properties in August 2011 as part of a portfolio transaction including another nearby Houston property, the same source shows.

Georga Rowe led the acquisition for MDH. Stream Realty Partners will handle leasing.

MDH made the purchase through its Fund III, a $1.2 billion discretionary fund that targets assets in the Southeast and Southwest. The firm manages its discretionary funds targeting industrial real estate across the U.S. on behalf of its institutional investors. MDH has been making investments through Fund III since early 2024, including the recent acquisition of six fully leased Class A industrial assets totaling nearly 1.5 million square feet in six markets for $165 million from LBA Logistics.

The properties, which range in size from 69,679 square feet to 302,880 square feet, are located in Miami; Atlanta; Cincinnati; Jacksonville, Fla.; Louisville, Ky.; and Columbus, Ohio. Each building is occupied by single tenants operating across the pharmaceutical, aerospace, food and beverage and household products industries.

Houston portfolio highlights

Located on Sam Houston Parkway, the properties are visible to approximately 150,000 vehicles per day with premier frontage along Beltway 8. The location provides access to all major transportation arteries in the region.

The nine buildings in the portfolio were developed between 2007 and 2017 and have an average suite size of 19,425 square feet. The spaces range from 6,800 square feet to 65,000 square feet.

The portfolio is 94 percent leased to 26 tenants with a weighted average lease term of more than 4.5 years.

According to Stream Realty Partners, the distribution segment with 50,000 square feet or more has historically had one of the lowest vacancy rates in the Northwest submarket over the last four quarters. The vacancy rate has been approximately 3.5 percent, reflecting tenant depth and leasing velocity in the shallow-bay size range.

More market data

CBRE reports industrial leasing activity in Houston during the third quarter of 2025 continued to increase quarter-over-quarter, reaching 9.4 million square feet, in line with broader industrial market trends across major logistics hubs. The Southeast and West submarkets had the highest amount of space leased, reaching nearly 3 million and 2 million square feet, respectively.

Net absorption totaled 2.5 million square feet in the third quarter, up slightly from the second quarter. The market has absorbed 5.2 million square feet, year-to-date, demonstrating consistent demand.

The CBRE third-quarter report showed the Northwest submarket saw rare negative absorption with 51,000 square feet of occupancy losses and a significant falloff in leasing activity. However, the Northwest submarket still leads the overall market in net absorption, with 1.4 million square feet of new tenants year-to-date.

Earlier MDH deals

MDH currently owns or manages approximately 37 million square feet across 33 markets in 18 states. The firm has a significant presence in the Lone Star state, including in the Houston area.

In October 2024, MDH acquired Cedar Port IKEA, a 996,482-square-foot industrial distribution center in Baytown, Texas, near Houston. The seller was reportedly Blackstone’s Link Logistics. The two-building property is fully leased to Ikea. Building A has 495,462 square feet and Building B has 510,020 square feet.

MDH made another big Texas deal that same month near Austin, acquiring a 1.4 million-square-foot industrial campus fully leased to Tesla. Alliance Industrial Co. sold the campus, which comprises five buildings ranging in size from 140,300 square feet to about 474,400 square feet.

Last month, MDH was active in three other states, securing $111.5 million in financing from Truist Bank for its recently acquired Canyon Industrial Portfolio, which has nearly 800,000 square feet of assets in Georgia, Nevada and California.