GREENWICH, CT, (February 7, 2024) – Grandview Partners, a Connecticut-based real estate investment manager, in partnership with Brennan Investment Group, recently acquired a 24-acre land parcel in Laredo, Texas, with plans to build a 393,796-square-foot, class-A industrial building. This investment adds to Grandview Partners’ growing industrial portfolio as reshoring and nearshoring drive demand for manufacturing and logistics space. This is on the heels of Grandview’s purchase of a 134-acre site in LaGrange, Georgia, near the future West Georgia inland port to develop Lafayette Logistics Park.
While it is still in the early stages, a return of manufacturing to the U.S. and nearby countries presents opportunities in the industrial real estate sector. However, navigating this transformation and understanding which markets may benefit requires a broader understanding of global dynamics, legislative influences, and the evolving needs of manufacturers as they seek to build resilient supply chains and modern, efficient facilities in the U.S.
Raj Menon, Chief Executive Officer, Grandview Partners, emphasized the firm’s strategic investment approach that capitalizes on the resurgence of manufacturing in the U.S. “These acquisitions reflect our two-pronged investment approach focused on building modern facilities in early-stage growth markets,” he said. “We are investing in U.S. industrial markets with proximity to nearshoring markets outside of the U.S., and in markets that attract high-margin manufacturers with the right infrastructure, business incentives, and access to skilled labor.”
Laredo is pivotal in the region’s strategic importance in the growing trade with Mexico post-USMCA. The Port of Laredo has become the busiest port of entry for U.S. goods, surpassing the Ports of Los Angeles/Long Beach and Chicago. Through this acquisition, Grandview aims to tap into the opportunities arising from nearshoring and the $30 billion boost expected in Mexico’s exports, with a substantial portion passing through the Port of Laredo.
Laredo is accessible for US-bound trucks originating from Mexican industrial hubs, primarily Monterrey, just 160 miles to the south. Monterrey has become one of Mexico’s critical manufacturing centers, attracting a significant percentage of the country’s foreign direct investment. Laredo is just a two-hour drive to the “Texas Triangle” home to 70% of Texas’s population and contributing over 75% to the state’s GDP.
Additionally, in LaGrange, Georgia, Grandview, in partnership with Farpoint Development, is developing Lafayette Logistics Park, featuring four Class A industrial buildings ranging from 187,000 to 270,000 square feet. The proximity of LaGrange to the future West Georgia Inland port, which enhances connectivity to Atlanta and Savannah, aligns with Grandview’s investment strategy.
The state of Georgia is investing the capital needed to support manufacturing. There is an ecosystem and infrastructure that is business-friendly and fosters growth and innovation. As a result, LaGrange has seen rapid growth as a manufacturing and distribution hub, with over 40 international and Fortune 500 corporations operating in the area, including KIA Motors’ only U.S. manufacturing facility. The market provides a deep labor pool capable of meeting the demands of modern manufacturing as well as sufficient electrical infrastructure to host manufacturing sites.
“Due to the evolving nature of manufacturing in the U.S. there has been a shift from labor-intensive tasks to more intellectual and technologically driven processes,” said Eric Freeman, Managing Partner, Grandview Partners. “Markets with access to skilled labor are expected to come out ahead”.
Grandview Partners invests in growth-stage markets that benefit from structural changes in real estate, including nearshoring and reshoring. They focus on uncovering investment opportunities in markets below most investors’ radars with solid supply-demand fundamentals, as well as significant capital investment, in this case, to bolster logistics capabilities and infrastructure. The Grandview team has owned or developed over 36 million square feet of industrial in over 22 states during their collective history together.