Stonelake Capital Lands 164 KSF in Houston Leases

2425 Broad St., Houston. Image courtesy of CommercialEdge

Two tenants have signed leases totaling 164,072 square feet at an industrial park in Houston owned by Stonelake Capital Partners. Lighting Inc. renewed its lease of 61,920 square feet, while Rigmore signed a new agreement for 102,152 square feet, bringing the property to full occupancy.

Partner Michael Keegan and Associate Andrew Laycock of Partners Real Estate represented the landlord in both transactions. Executive Vice President Drew Morris and Managing Director Grant Hortenstine of Savills represented Lightning Inc. in its renewal.

The buildings served as the headquarters for Gulf & Basco, the previous owner, according to CommercialEdge data. In 2019, the property was acquired by Stonelake for an undisclosed amount, while in 2020, it became subject to a loan provided by Texas Capital Bank.

The 205,077-square-foot property includes two one-story buildings that were completed in 1957 and fully renovated in 1994. The Class B facility is on an 8.2-acre lot, includes 7,000 square feet of showroom space and features clear heights ranging from 9 to 24 feet, fire sprinklers, a dock-high loading platform with seven positions, as well as a parking ratio of 0.8 per 1,000 square feet.

The buildings are located at 2425 Broad St., close to the intersection of interstates 45 and 610 and approximately 6 miles southeast of downtown Houston. Major companies in the surrounding area include The Home Depot and Lowe’s Home Improvement.

Houston industrial rents grow

One of the largest metro Houston leases this year was Tesla’s full-building agreement for Building 9 of the Empire West Business Park in Brookshire, Texas, amounting to more than 1 million square feet.

A recent CommercialEdge industrial report shows that Houston had the highest vacancy rate in the nation, at 7.7 percent as of December, higher than the 3.9 percent national rate. Despite lagging most markets, the report highlights that locations such as Houston are becoming increasingly desirable due to overcrowded port markets. Houston also saw rents rise 2.1 percent in 2022, and its supply pipeline represented 4.1 percent of total stock at the end of the year—above the national rate.