Hanover Company has broken ground on its first industrial project, the Settlers Park Business Center in Round Rock. The development comes amid continued strong demand for industrial space in the five-county Austin region.
The project marks a milestone for Hanover as its first industrial property to launch construction, although the company has several other industrial projects in the pipeline. Settlers Park is being developed with institutional investors advised by J.P. Morgan Asset Management.
Hanover is a private real estate firm that has specialized in luxury multifamily projects. The company has developed multiple high-rise apartment towers in downtown Austin.
Once built, Settlers Business Center, at 701 N. Red Bud Lane, will have three buildings with 361,000 square feet of space. Construction is expected to be complete by the second quarter of next year. Hanover did not disclose a cost for the project.
Brandt Bowden, Hanover's chief executive officer, said in a news release that the inaugural Round Rock project is part of the company's move to diversify its offerings.
“We pursued this product type through our world-class development platform to provide another investment option for our capital partners,' Bowden said. "We are especially pleased that one of our long-time capital partners, J.P. Morgan Asset Management, has invested with us in this project.”
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As one of the nation's fastest-growing industrial markets, the Austin region continues to see unprecedented growth, with major tech players including Tesla, Samsung, and Oracle being significant contributors both in the city and its surrounding areas. That growth, coupled with an increasingly diverse mix of tenants, attracted Hanover to pursue the Austin-Round Rock market, Hanover and J.P. Morgan executives said.
“This transaction underscores our commitment to invest in high-quality, strategically located industrial assets,” Preston Meyer, managing director at J.P. Morgan Asset Management, said in the release.
At Settlers Park, the buildings will range in size from 107,904 square feet to 126,616 square feet. The project will have access to the Texas 130 toll road to the east, Interstate 35 to the west and U.S. 79 to the south.
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Settlers Park is 10 miles from Samsung’s 1,200-acre semiconductor facility underway in Taylor.
“Our team thoughtfully designed this facility to appeal to a broad spectrum of companies with different needs and space requirements while paying special attention to the Austin-area’s small and mid-sized tenant base,” James Melody, Hanover's development partner in Texas, said in the release. “Those companies represent the traditional backbone of Austin’s light industrial business and are among those best positioned to benefit from the operational advantages that come with leasing new, Class A (first class) space in the booming Round Rock area.”
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David Hudson, president of Hanover Industrial, said the project required collaboration among multiple teams working on the project throughout the challenging capital crunch that began in mid-2022.
“We have a strong belief in the continuing growth in Austin and the need for future Class A industrial space in the broader Central Texas market," Hudson said.
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This article originally appeared on Austin American-Statesman: Hanover Company begins construction in Round Rock on its first industrial project
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