Login

Rail-and-barge-served industrial park secures entire-building lease

Lease of the Year for Houston
Constellation Beverage leased the entire 496,421-square-foot site at TGS Cedar Port DC 2. (CoStar)
Constellation Beverage leased the entire 496,421-square-foot site at TGS Cedar Port DC 2. (CoStar)
By Natalie Harms, William Payne
CoStar News
March 25, 2026 | 11:00 AM

In August 2025, TGS Cedar Port Partners secured the largest rail-served industrial deal of the year in Houston. Constellation Beverage leased the entire 496,421-square-foot building at 4407 E. Grand Parkway South in Baytown, Texas.

The project has earned a 2026 CoStar Impact Award for lease of the year for Houston, as judged by real estate professionals familiar with the market.

The facility, on approximately 27 acres, offers above-standard specifications, including a 36-foot clear height, dual rail service via Union Pacific and BNSF, an 8-inch minimum slab, LED warehouse lighting, ESFR sprinkler system, oversized truck court and ample car and trailer parking. Its direct access to the Port Houston container terminals and major highways makes it an ideal location for efficient supply-chain operations.

“We are thrilled to welcome our newest tenant to TGS Cedar Port Industrial Park. This company has a world-class reputation that we believe fits nicely among the brands located within Cedar Port, and we hope to see their business flourish for the benefit of our community and region,” said James Scott, president of TGS Cedar Port Partners. "Cedar Port is a great fit for any rail-served customer.

"Following the completion of our 900-railcar expansion in 2024, Cedar Port now has the capacity to store over 5,500 railcars," he continued. "In 2024, Cedar Port interchanged over 100,000 railcars for more than 50 customers. Cedar Port is currently undergoing an expansion to add an additional 1,000 railcar spaces."

Following the leasing of DC 2, TGS Cedar Port is preparing to break ground on DC 5, a 609,000-square-foot distribution center that can be expanded to over 900,000 square feet. DC 5 offers the flexibility to be configured as a dual-rail-served or cross-dock facility.

In addition to DC 2, TGS Cedar Port Industrial Park offers two other state-of-the-art distribution centers available for lease and ready for immediate occupancy.

About the project: Constellation Beverage leased the entire 496,421-square-foot building at 4407 E. Grand Parkway South in Baytown, Texas. TGS Cedar Port Industrial Park, in West Chambers County near Houston, is the largest master-planned, rail-and-barge-served industrial park in the U.S. One of the fastest-growing industrial parks in North America, Cedar Port boasts over 25 million square feet of industrial and manufacturing warehouses either existing or under construction.

What the judges said: "This lease is a definitive market catalyst, securing a high-credit, global consumer brand for a 500,000-square-foot speculative facility despite an environment of tariff uncertainty and shifting supply-chain dynamics. The transaction validates the region’s dual-rail and port-proximate infrastructure as a critical differentiator, confirming the submarket’s resilience and its strategic necessity for top-tier international tenants," said Ariel Guerrero of Avison Young.

They made it happen: James Scott, president of TGS Cedar Port Partners; John Simons, partner at Partners Real Estate; Chris Haro, partner at Partners Real Estate

IN THIS ARTICLE


News | Rail-and-barge-served industrial park secures entire-building lease