Construction of GCP Paper's new manufacturing facility in New Caney, Texas.
GCP Paper, a private label paper product company, has secured financing for a manufacturing facility in New Caney, Texas, which will span 565,765 square feet. The project, financed by CBRE Capital Markets, is set to enhance local economic growth and job opportunities, with construction expected to commence soon and complete in the upcoming years. This facility aims to strengthen GCP Paper’s presence in the U.S. manufacturing landscape.
GCP Paper, a private label paper product company based in Mexico, has successfully secured financing to construct a significant manufacturing facility in New Caney, Texas. The new facility, which will encompass an impressive 565,765 square feet, will mark GCP Paper’s flagship location within the United States.
The financing was facilitated by the Debt & Structured Finance team at CBRE Capital Markets, with John Fenoglio and Brock Hudson representing the company in Houston. An 80% loan-to-cost (LTC) construction loan has been arranged to support the project. Additionally, financing was also provided by Jason Greenway and Emily Loomis, along with Cadence Bank, underscoring the strong financial backing for this considerable investment.
The facility will be constructed at 19685 Emerald Lane in the East Montgomery Industrial Park and will consist of two interconnected single-story structures: an office/production warehouse and a mill building. Construction commenced in June 2025, with completion anticipated by June 2026. The project is being developed by Pontikes, with Satterfield & Pontikes acting as the general contractor, ensuring a streamlined approach to construction.
The construction of GCP Paper’s facility adds to the ongoing economic development in the New Caney area. With the rapid growth of the manufacturing sector and the increase in job opportunities, local economies are projected to benefit significantly from such large-scale projects.
In addition to this significant project, the Dallas area is currently ranking high in several construction metrics. Downtown Dallas, for instance, ranks 12th in the nation for apartment growth, with over 7,600 new units built since 2020. This growth represents nearly one-third of all new rental properties in the city.
In Texas, Dallas also boasts the highest downtown share of apartment construction compared to other cities, such as Houston and Austin. The number of apartments in Downtown Dallas has shown impressive growth, increasing from 7,900 units in the 1990s to approximately 22,500 units in the 2010s. Notably, a significant percentage of these new apartments, around 10.5%, have originated from redevelopment projects.
AvalonBay Communities has recently signed a contract to acquire eight apartment communities throughout the Austin and Dallas-Fort Worth metropolitan areas. This deal will encompass a total of 2,701 units, showcasing continued interest in the region’s multifamily housing market. The Austin-area assets include 857 units acquired for $187 million, while the Dallas-Fort Worth properties consist of 1,844 units acquired for $431.5 million.
The average price per unit for these communities stands at approximately $229,000. Meanwhile, the anticipated weighted average rent per home in these communities will likely reach around $1,675 monthly. These figures indicate a robust demand for rental properties in Texas, contributing to the overall vibrancy of the housing market.
Meanwhile, in Houston, the average advertised asking rent remained relatively stable at around $1,364 over the previous three months. Projections indicate a year-over-year rent growth of 2.2% for Houston by 2025, which continues to attract developers and investors to the region.
The stabilization rate for occupied properties in Houston has remained solid at 92.6%, displaying a resilient rental market. Notably, employment growth in Houston stood at 2.1% year-over-year, surpassing the national average, while the unemployment rate held steady at 4.1% as of December.
Developers are actively expanding in Houston, having added 20,355 rental units to the market last year, which exceeds the historical average. Investments are also pouring into infrastructure, as demonstrated by Oneok and MPLX’s commitment of $1.8 billion to build a 400,000-barrel-per-day LPG export terminal in Texas City.
As GCP Paper’s manufacturing facility takes shape, it stands as a symbol of the ongoing economic growth and development across Texas. With robust financing backing and a focus on meeting market demands, this project adds to the expanding landscape of manufacturing and housing in the region.
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