Houston

Principal Financial Group and Stream Realty Partners Complete 3.3 Million Square Feet Industrial Park in Southeast Houston

July 13 2 min read

Bay Area Business Park delivers final phase of project totaling 1.3 million square feet.

HOUSTON, TX (July 13, 2020) Stream Realty Partners (Stream), a national real estate services, development, and investment company, is pleased to announce the completion of a 3.3 million square foot Class AA industrial development located near Port Houston, Bay Area Business Park (BABP). Owned by Principal Real Estate Investors (Principal), a global financial investment management and insurance company, BABP delivered the final three speculative buildings totaling 1.3 million square feet on June 8, which was approximately 20 percent preleased prior to completion.

“Working with Principal on BABP has been a labor of love for the last 13 years and it is very fulfilling to have seen this project evolve from a conceptual plan to one of the most successful development projects in Houston,” said Justin Robinson, Partner at Stream. “We are very pleased with everything we have accomplished to-date and continue to be focused on serving the existing customers in the park, including getting buildings 8 and 10 in the latest phase leased.”

In 2007, Principal and Stream broke ground on the original 137 acres with the intention of building a few speculative buildings in multiple phases. Phase one was 1.2 million square feet across three buildings and delivered in 2008. Phase two was 850,000 square feet across four buildings and delivered in 2016. Principal purchased an additional 95 acres in 2019 to include a third phase of its already successful project. Phase three consists of three buildings totaling 1.3 million square feet. All three phases combined make BABP one of the largest single-owner industrial parks in Houston at 3.3 million square feet total on 232 acres.

“It is hard to believe we started this vision 13 years ago after extensive market research indicated there was demand for bulk warehouse space near the Port,” said Casey Miller, Managing Director at Principal. “Even though we are fully built out, our intention is to hold this irreplaceable real estate whose location just gets better year-over-year. We stand dedicated to the growth of the city of Houston and are extremely proud of what we have accomplished with Stream’s help.”

Since 2007, Stream has overseen the development, leasing and property management of BABP. Buildings 8 and 10 in BABP can accommodate users from 20,000 square feet to over 1,000,000 square feet while providing a variety of first-class, modern amenities. Additionally, building 10 enables further tenant customization with potential for 10 acres for outside storage, dense automobile parking or a trailer/container yard. As with the prior phases, phase three will be part of Foreign Trade Zone #84 and anticipate receiving LEED certification.

“The unmatched offering at BABP enables us to cast a wide net across a variety of tenants, thereby catering to tenant demand in whatever form it may take,” said Jeff Pate, Vice President at Stream. “Based on this, the quality of the development, superior location and Principal’s strong sponsorship, we are excited and confident to see what the market will bear.”