Hanover Company, Transwestern Investment Group Sell 213,000-SF Kirby 288 Industrial Warehouse in South Houston

HOUSTON — Hanover Company and Transwestern Investment Group have sold Kirby 288, a newly completed 213,000-square-foot Class A industrial warehouse at 12150 Kirby Drive in South Houston, the firms announced Sept. 30. The sale closed earlier this month.

The speculative, cross-dock facility was completed in June 2026. Hanover and Transwestern Investments acquired the site on April 30, 2025. Colliers represented Hanover in the transaction.

Kirby 288 Property Details

Kirby 288 sits at the northwest intersection of Kirby Drive and Mowry Road, just west of SH 288 and inside the Beltway 8 Loop. The building totals just over 213,000 square feet, with a 360-foot depth and 36-foot clear height. The property includes excess trailer parking on both truck courts.

The location provides access to the Texas Medical Center via SH 288 and to southwest and southeast Houston via Beltway 8. Powers Brown served as the project architect.

Hanover and Transwestern Executives Comment

"We are proud to have delivered a best-in-class facility that meets the evolving needs of today's industrial users and to see the project successfully transition to new ownership," said James Melody, Development Partner at Hanover. "Kirby 288 represents our continued commitment to delivering high-quality industrial assets in strategic locations that provide long-term value for tenants and investors alike."

David Hudson, President of Hanover Industrial, said the building was delivered when industrial user sales were strong in Houston. "The location, design and completion all aligned to allow us to take advantage of these conditions," Hudson said. "It is a great example of the advantages derived from the vertical integration of the Hanover development platform."

Jim Elsener, Managing Director at Transwestern Investments, said, "Kirby 288 is a great example of the value that can be created through a strong partnership and disciplined execution. Hanover did an exceptional job delivering a high-quality project, positioning the partnership to capitalize on an attractive opportunity and achieve a successful outcome for our investors."

Colliers Brokerage Team

Robert McGee, principal and executive vice president; Taylor Schmidt, principal and executive vice president; and Austin Bartula, vice president, all with Colliers, represented Hanover in the sale.

Houston Industrial Market Context

The sale comes as Houston's industrial market absorbs a large volume of new supply. In the second quarter of 2026, the market recorded roughly 6.7 million square feet of net absorption, with another market report citing 7.0 million square feet. Vacancy held at 7.4%, down from 7.6% in the first quarter, despite 10.4 million square feet of year-to-date deliveries.

Large users tied to AI infrastructure, power generation and reshored manufacturing competed for buildings larger than 200,000 square feet in the second quarter, a size range that includes Kirby 288.

The construction pipeline remains sizable. Houston had approximately 23 million square feet under construction in the second quarter, with 8.6 million square feet delivered during the quarter and 14.3 million square feet delivered year to date. Average asking rent reached $7.87 per square foot in the second quarter, up 5.0% year over year, while warehouse and distribution space averaged $7.67 per square foot.

Market data varies by provider. JLL reported first-quarter vacancy of 7.0%, with the West and Southwest submarkets posting the lowest rates at 5.1% and 5.2%, respectively. Another first-quarter report put citywide vacancy at 7.5%, about 160 basis points above its long-term average, with 27.9 million square feet under construction.

About the Sellers

Hanover Company, founded in Houston in 1982, develops and builds multifamily residential and industrial properties across U.S. markets including San Francisco, Los Angeles, San Diego, Houston, Austin, Dallas, Boston, Washington, D.C., Atlanta, Philadelphia, Phoenix, Denver, Fort Lauderdale, Raleigh and Charlotte.

Transwestern describes itself as a vertically integrated commercial real estate firm with 35 offices nationwide, offering investment, development, brokerage and property management services. The firm reported owning, leasing and operating $64 billion in assets as of April 1, 2026.

Sources

• Transwestern Investment Group: https://transwesterninvest.com/kirby288-2026.html
• Transwestern: https://transwestern.com/news-detail/hanover-transwestern-announce-sale-of-newly-completed-kirby-288-industrial-proje