Colliers New Mexico-El Paso secures ground lease for 235-acre industrial hub in El Paso
February 21, 2024

By Aayush Gupta | February 21, 2024

A national commercial real estate firm and a New York-based private investment group are teaming up to bring a new 235-acre industrial hub to El Paso, Texas.

Sansone Group and Raith Capital Partners are developing Rancho del Rey Logistics Park at Interstate 10 and Loop 375. The 3.7 million-square-foot project will be constructed by Catamount Construction Inc. in three phases.

Phase 1 consists of three buildings that will total 1.38 million square feet of new space. Construction began on Feb. 9 and is slated to finish by this fall, Colliers New Mexico-El Paso Principal Bob Feinberg said. Delivery of the remaining two phases is expected by 2026.

Feinberg and Colliers New Mexico-El Paso Principal Tom Jones represented Sansone/Raith Capital Partners and the landlord in the lease. Feinberg and Jones declined to disclose the name of the landlord and the lease terms.

“The positive thing about El Paso is it’s very business progressive and business supportive,” Feinberg said. “The workforce is great and we can’t compliment the city and utility officials in El Paso enough about how cooperative and helpful they were.”

On Feb. 2, Bosch, a German auto electronics supplier, became the first company to lease space in the future complex, Feinberg said. The company will occupy 413,035 square feet in Building 1, according to the news release. Feinberg and Jones represented Sansone in the Bosch lease, as well.

“The current interest is very vibrant and we are just beginning our marketing campaign,” Feinberg said. “Seventy percent of the industrial space in El Paso is used for distribution and storage, and 30% is manufacturing. We will probably have that similar mix on the property.”

The new complex is situated near the Ysleta-Zaragoza Port of Entry, a key border crossing that saw over 650,000 cargo trucks pass by in 2022, according to FreightWaves, a price reporting agency focused on the global freight market.

Feinberg said the area reflects “the busiest commercial crossing in El Paso.”

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