GCP Paper Secures Financing for Manufacturing Facility

News Summary

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 Secures Financing for New Manufacturing Facility in Texas

GCP Paper, a private label paper product company based in Mexico, has successfully secured financing for a large manufacturing facility in New Caney, Texas. This facility will cover an impressive 565,765 square feet and is set to become GCP Paper’s flagship location in the United States. Construction of the facility is expected to begin in June 2025 and be completed by June 2026.

Financial Details Revealed

The financing deal was facilitated by the CBRE Capital Markets’ Debt & Structured Finance team, led by John Fenoglio and Brock Hudson in Houston. They secured an 80% loan-to-cost (LTC) construction loan for GCP Paper. Additional financing was provided by Jason Greenway and Emily Loomis from Cadence Bank, further backing the ambitious project.

Project Overview

The manufacturing facility will be strategically located at 19685 Emerald Lane in the East Montgomery Industrial Park. The construction will consist of two interconnected single-story structures: an office/production warehouse and a mill building, efficiently designed to meet the needs of GCP Paper’s operations. The development will be overseen by Pontikes, while Satterfield & Pontikes takes charge as the general contractor for this project.

A Growing Sector

The establishment of this manufacturing hub aligns with broader trends in the construction and rental sectors in Texas, particularly in urban centers. Downtown Dallas has emerged as a major player in apartment growth, ranking 12th in the nation for new apartment developments. Since 2020, over 7,600 new rental units have been constructed in the area, representing nearly one-third of all new rentals within the city. This surge reflects the rising demand for quality housing and spaces in metropolitan regions.

Comparative Growth Across Texas Cities

Dallas leads Texas in apartment construction within its downtown area, even surpassing Houston’s addition of 7,128 units and Austin’s 7,054 units. The total number of apartments in Downtown Dallas has significantly increased, climbing from 7,900 units in the 1990s to 22,500 units in the 2010s. The trend extends to project revitalization, with over 10.5% of the newly constructed apartments since 2020 resulting from redevelopment efforts.

Market Dynamics

AvalonBay Communities is currently in the process of acquiring eight apartment communities, adding a total of 2,701 units to the Austin and Dallas-Fort Worth areas. This acquisition includes 857 units in Austin for $187 million and 1,844 units in Dallas-Fort Worth for approximately $431.5 million. The communities, sold by BSR REIT, comprise suburban garden-style residences with an average age of 11 years, demonstrating a shift towards appealing living arrangements in desirable locations.

Rental Trends in Texas

The average price per unit across these communities is around $229,000, with monthly rent projected at $1,675. In Houston, asking rents have remained stable at $1,364 over a three-month period leading up to January. Looking ahead, Yardi Matrix forecasts a year-over-year rent growth of 2.2% for Houston in 2025, reflecting the resilient economic environment.

Houston’s Employment Landscape

Employment opportunities in Houston are also on the rise, showing a year-over-year growth of 2.1% through November, exceeding the national average. The unemployment rate in the city matched the national figure at 4.1% as of December. In a testament to the city’s industrial growth, Oneok and MPLX are investing $1.8 billion to create a significant 400,000-barrel-per-day LPG export terminal in Texas City, further solidifying Houston’s role in the energy sector.

Overall, the construction of the new manufacturing facility by GCP Paper in New Caney marks a pivotal development in Texas’s expanding industrial landscape, complementing the growing residential markets and the state’s economic vitality.

Deeper Dive: News & Info About This Topic

Additional Resources

• ConnectCRE: Texas People & Companies – June 27, 2025
• Wikipedia: Economic Development
• ConnectCRE: Dallas Leads Texas Towns in Apartment Growth
• Google Search: Texas Apartment Growth
• ConnectCRE: AvalonBay Picks Up 8 Texas Rental Assets for $618.5M
• Google Scholar: Texas Real Estate Market
• ConnectCRE: Houston Pegged for Modest Multifamily Rent Growth
• Encyclopedia Britannica: Real Estate Market
• ConnectCRE: 500 Acres of Commercial Real Estate Planned for Montgomery County Community