PCCP JV to Develop 940 KSF Industrial Project in El Paso

Project Grande will comprise two Class A logistics facilities. Image courtesy of PCCP LLC

A joint venture of PCCP LLC, Panattoni Development Co. and Hunt Cos. are developing Project Grande, a 939,612-square-foot speculative industrial development in El Paso, Texas. The construction of the two Class A logistics facilities is already underway, with completion expected in the third and fourth quarters of 2024. The buildings were over 50 percent pre-leased prior to breaking ground.

The development represents the first phase of a planned 1.8 million-square-foot industrial park. Upon completion, Project Grande will feature 36-foot to 40-foot clear heights, ESFR sprinklers, as well as rear-load and cross-dock configuration.

Located at the southeast corner of Pellicano Drive and Aircoupe Way, the 45-acre development site is within El Paso’s East submarket. Project Grande is near to Loop 375, Interstate 10 and the Zaragoza International Port of Entry, in an area which is beneficial for logistics and distribution.

As a part of a bi-national, tri-state trade region known as the Borderplex Region, the El Paso industrial market benefits from strong fundamentals, including a 3.3 percent vacancy rate. According to a recent CBRE report, the El Paso industrial market recorded 706,698 square feet of net absorption in the third quarter of 2023, while the year-to-date net absorption marked a new record high of 2.6 million square feet. The same source shows that approximately 4 million square feet of industrial space remained under construction at the end of the third quarter.

Panattoni and Crow Holdings Capital recently secured $252.3 million in construction financing for the development of three industrial buildings totaling 2.2 million square feet in Fredrickson, Wash. PCCP provided the financing.