Foxconn Buys 1 MSF Industrial Campus for $142M

June 6, 2025

Investment Houston Industrial News More Southwest

The global electronics maker plans to invest up to $450 million in an AI server manufacturing facility.

Taiwan-based Foxconn Corp., a global electronics maker and longtime manufacturing partner to Apple and Nvidia, has acquired the four-building, 1 million-square-foot, Class A Fairbanks Logistics Park in northwest Houston from Dalfen Industrial for $142 million. Foxconn reportedly plans to invest $450 million at the 86.3-acre industrial park to build an AI server manufacturing facility.

Aerial view of Fairbanks Logistics Park, a four-building, 1 million-square-foot industrial campus in Houston. *Image courtesy of Dalfen Industrial*

Greater Houston Partnership, the largest chamber of commerce in the Houston area, stated in its first-quarter business report released in late April that the Foxconn facility would create 600 direct jobs, 814 indirect jobs and have an estimated $920 million economic impact on the region. The partnership stated it was involved in the process to bring Foxconn to Houston.

The Foxconn purchase comes several months after Apple announced it was planning a 250,000-square-foot AI manufacturing facility in the Houston area as part of a four-year, $500 billion investment in the U.S. Completion is planned for 2026 for the Apple project. The company plans to use the plant to produce servers for Apple Intelligence, its AI system for iPhone, iPad and Mac computers, previously manufactured outside the U.S.

In April, Nvidia announced it was building a factory in Houston in collaboration with Foxconn that would manufacture components for AI supercomputers. Nvidia said mass production at the Houston plant would be ramped up within 12 to 15 months. The company also plans a second facility in Dallas with electronics manufacturer Wistron. The facilities are expected to total more than 1 million square feet of manufacturing space. Once completed, it will be the first time Nvidia has built AI supercomputers entirely in the U.S.

The investments come as Houston tries to position itself as a growing hub for advanced manufacturing and AI infrastructure. They also come amid uncertainty for manufacturers trying to avoid significant tariffs that could be imposed by the Trump administration.

“Houston continues to prove itself as a powerhouse for industrial growth, driven by its strategic location, access to skilled labor and robust infrastructure. As AI technologies reshape the industrial landscape, we’re seeing a sharp uptick in demand for best-in-class facilities that can support advanced manufacturing operations,” John Lettieri, market officer for Dalfen’s Central region, told Commercial Property Executive.

Stream Realty brokers Garrett Geaccone, Jeremy Lumbreras and Tyler Maner represented Dalfen in the transaction. Reggie Beavan and Joshua Brown of Newmark Group represented Foxconn.

Fairbanks Logistics Park details

Dalfen acquired the Fairbanks Logistics Park, which comprises 8702, 8718, 8726 and 8710 Fairbanks North Houston Road, in July 2023 from Investment & Development Ventures, according to CommercialEdge.

The industrial park is located at the intersection of Beltway 8 and Highway 249, with immediate access to Highway 290. It is 17 miles from George Bush Intercontinental Airport, 19 miles from downtown Houston. The site is 26 miles from Port of Houston and 62 miles from Port of Texas City. The area is home to several national and global occupiers including Amazon, UPS, Target and Home Depot.

All the buildings include 32-foot clear heights, office components, LED lighting systems, dock equipment and an additional 5-acre paved yard with 148 trailer parking spots. Here’s a closer look at each of the four buildings:

8702 Fairbanks North Houston Road, Building 1, has 258,204 square feet. It has two grade-level doors, 61 dock-high doors and 287 parking spaces.
8710 Fairbanks North Houston Road, Building 2, has 244,128 square feet. It has four grade-level doors, 50 dock-high doors and 248 parking spots.
8718 Fairbanks North Houston Road, Building 3, has 287,470 square feet. It has two grade-level doors, 68 dock-high doors and 299 parking spots.
8726 Fairbanks North Houston Road, Building 4, has 221,719 square feet. It has 47 dock-high doors, two grade-level doors and 166 parking spots.

Dalfen’s Houston portfolio

Dalfen, a Dallas-based privately held industrial real estate investment firm, owns and operates a national portfolio with more than 55 million square feet. Sean Dalfen, president & CEO, said the firm has more than 10 million square feet in Texas. He said they are actively seeking to substantially expand the company’s footprint in the Houston market.

“It has all the right variables that we are looking for: business friendly, dense population, strong population growth, skilled workforce, relatively low cost of living and great connectivity to other large Texas metros,” he told CPE.

Lettieri added the Houston market, “is emerging as a key national hub for durable, long-term industrial investment.”

Some of the firm’s Houston-area holdings include 519 S. 16th St., La Port, Texas, with a 15,000-square-foot warehouse and an outdoor storage yard on 5 acres, and North Freeway Commerce Park, a 50,150-square-foot cross-dock building at 16950 North Freeway in Houston.

Last year, Dalfen sold the Hardy Industrial Center, a 206,333-square-foot property at 1202 FM 1960 Road in Houston that was purchased in May 2023.