Houston's Cold Rush: East Coast Warehouse Bets Big on Gulf Coast Ports

HOUSTON, TX – December 04, 2025 – In a strategic move that underscores the growing gravitational pull of Gulf Coast logistics, East Coast Warehouse & Distribution, a long-standing leader in temperature-controlled warehousing, has announced a $57.5 million investment to establish its first-ever Texas operation. The new 321,440-square-foot facility in Baytown, near the bustling Port of Houston, marks a significant westward expansion for the 70-year-old company, signaling a decisive step in its ambition to build a national cold chain network. This investment is not merely an expansion; it's a calculated bet on the future of global trade through one of America's fastest-growing gateways.

Set to open in May 2026, the facility represents more than just new infrastructure. It is a critical node in an increasingly complex and demanding food and beverage supply chain. The move positions East Coast Warehouse squarely in the middle of a regional logistics boom, tapping into the powerful currents of international commerce, soaring demand for refrigerated goods, and massive public infrastructure investment that are reshaping the Houston area into a premier global logistics hub.

The Gulf Coast's "Cold Rush"

East Coast Warehouse is not entering a quiet market. Instead, it is joining what can only be described as a regional "cold rush." Houston's cold storage sector is experiencing unprecedented growth, driven by the region's expanding population, the rise of e-commerce for groceries and perishables, and its strategic location as a key import gateway from Central and South America. Port Houston has become a critical entry point for temperature-sensitive products, reporting a remarkable 15% increase in refrigerated cargo imports in 2024, followed by a staggering 46% year-over-year surge in April 2025 during the peak fruit season.

This explosive demand has attracted a wave of significant investments. In recent years, major players have raced to build capacity. Blackline Cold Storage opened a nearly 300,000-square-foot facility in 2022 with plans to more than double its size. Logistics giant Maersk chose Houston for its first proprietary cold-storage facility, and Custom Goods CES unveiled a 353,000-square-foot refrigerated and dry cargo warehouse. This competitive landscape highlights the immense opportunity that operators see in the region. East Coast Warehouse's entry adds another formidable player to the mix, bringing its specialized expertise in serving the food and beverage industry to a market hungry for sophisticated, value-added logistics solutions.

"This is welcomed news for port customers," said John Moseley, Chief Commercial Officer at Port Houston. He emphasized that "value-added services like those being offered in this near-port facility supports Port Houston’s principles of offering a low-cost, high-service, and low-risk gateway to our growing customer base." The creation of 65 new jobs and the significant capital injection further anchor the region's status as an expanding logistics employment cluster, a sentiment echoed by local economic leaders.

From Regional Powerhouse to National Contender

For decades, East Coast Warehouse built its reputation as a dominant force along the Atlantic seaboard, with a strategic footprint near the ports of New York/New Jersey, Philadelphia, Baltimore, Savannah, and Charleston. This expansion to Houston signifies a fundamental pivot in corporate strategy, transforming the company from a regional powerhouse into a true national contender. The catalyst for this ambitious leap was a pivotal 2022 investment from Equity Group Investments (EGI), the private investment firm founded by the late real estate magnate Sam Zell.

EGI's investment provided not just capital but a strategic mandate for growth. Known for its long-term, opportunistic approach, EGI has a history of scaling companies in the transportation and logistics sectors into national leaders. This expansion is the tangible result of that partnership, fulfilling the vision articulated by East Coast Warehouse CEO Jamie Overley to provide an "end-to-end, national temperature controlled third-party solution with regional expertise." By establishing a presence at the nation's top port for waterborne tonnage, the company is strategically bridging its East Coast operations with the burgeoning trade flows of the Gulf, creating a more resilient and comprehensive network for its clients.

A Bet on Infrastructure and Real Estate

The decision to anchor its Texas operations at the Baytown 146 Development is as much a real estate play as it is a logistics one. The Houston industrial real estate market, particularly in the port-adjacent Southeast submarket, remains one of the strongest in the country. The fact that East Coast Warehouse pre-leased the entire 321,440-square-foot building before its completion speaks volumes about the fierce competition for Class A industrial space.

The transaction, in which KBC Advisors represented the landlord Velocis, reflects robust investor confidence. The lease terms—a 124-month commitment with annual rent escalations—underscore the perceived long-term value and stability of logistics assets tied to critical port infrastructure. Paul Smith, a Partner at Velocis, noted the project has "benefited from robust tenant activity around the Port of Houston," a trend that shows no signs of slowing. The facility itself, located just miles from the Barbour’s Cut and Bayport container terminals with toll-free access, is designed for maximum efficiency, featuring extensive space for trailer and container storage—a crucial asset in mitigating supply chain congestion.

This move validates the broader investment thesis that modern, high-quality industrial properties in core logistics nodes are essential infrastructure for the 21st-century economy. The development is not just a warehouse; it is a strategic asset designed to optimize the flow of goods from ship to shelf in one of the nation's most dynamic commercial corridors.

Port Houston's Foundation for Growth

Private sector confidence is being met, and arguably fueled, by massive public investment in the port's own capabilities. Port Houston is in the midst of a generational upgrade, most notably the Houston Ship Channel Expansion, known as Project 11. This billion-dollar undertaking is widening and deepening the channel to accommodate the larger container vessels that are becoming the global standard. The project, set for completion in 2029, will dramatically increase the port's capacity and efficiency.

Alongside this channel expansion, the port is aggressively upgrading its terminals. The construction of a new wharf at the Bayport Container Terminal is underway to reduce vessel wait times, with further expansions already in the design phase. These forward-looking investments ensure that the port can handle the increasing cargo volumes that companies like East Coast Warehouse are banking on. This symbiotic relationship between public infrastructure enhancement and private logistics investment creates a powerful flywheel effect, solidifying Houston's competitive advantage and ensuring its role as a critical artery for U.S. and international trade for decades to come.