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 Finances New Manufacturing Facility in New Caney, Texas

GCP Paper, a private label paper product company based in Mexico, has successfully secured construction financing for a substantial manufacturing facility in New Caney, Texas. The facility will span an impressive 565,765 square feet and will serve as GCP Paper’s flagship location in the United States.

Details of the Financing Arrangement

The construction financing was facilitated by the Debt & Structured Finance team at CBRE Capital Markets. This team, led by John Fenoglio and Brock Hudson, has arranged an 80% loan-to-cost (LTC) construction loan for GCP Paper. In addition to CBRE, financing support was also provided by Jason Greenway and Emily Loomis from Cadence Bank, reflecting a strong financial backing for this major project.

Project Development Partners

The development of this facility is being undertaken by Pontikes, with Satterfield & Pontikes serving as the general contractor for the project. The manufacturing plant’s site will be located at 19685 Emerald Lane in the East Montgomery Industrial Park, strategically positioned to enhance distribution capabilities across the region.

Facility Layout and Construction Timeline

The new manufacturing facility will consist of two interconnected single-story structures, including an office and production warehouse as well as a mill building. Construction activities for the facility commenced in June 2025 and are expected to be completed by June 2026, adding significant production capabilities to GCP Paper’s operations.

Background on Dallas Apartment Growth

12th in the nation for apartment growth, with more than 7,600 new units built since 2020. This growth accounts for nearly one-third of all new rentals in the city.

Comparative Growth Across Texas Cities

In terms of apartment construction, Dallas leads the way among Texas cities, followed by Houston with approximately 7,128 units and Austin with 7,054 units. Since the 1990s, the number of apartments in Downtown Dallas has seen a considerable rise from 7,900 units to 22,500 units during the 2010s, showing the increasing demand and growth in this urban area.

Emergence of Redevelopment Projects

An interesting trend has emerged with the increase in the conversion of spaces. Notably, 10.5% of newly added apartments since 2020 have resulted from redevelopment projects, indicating a changing landscape in urban living and construction.

AvalonBay’s Acquisition in Austin and Dallas-Fort Worth

Adding to the ongoing developments, AvalonBay Communities recently entered into a contract to acquire eight apartment communities in the Austin and Dallas-Fort Worth metropolitan areas. The acquisition includes 2,701 units, with the Austin-area properties comprising 857 units purchased for $187 million, while the Dallas-Fort Worth assets include 1,844 units acquired for $431.5 million.

Pricing and Rent Trends in Texas

The average price per unit across these eight communities hovers around $229,000, with a projected weighted average rent of $1,675 per month. Meanwhile, Houston’s average asking rents have remained stable at $1,364 for a three-month period up to January, with a forecasted year-over-year rent growth of 2.2% for 2025.

Stabilized Properties and Employment Growth

Houston’s property market has also shown resilience, with an average occupancy rate of 92.6% among stabilized properties year-over-year through January, aided by a 2.1% rise in employment growth through November. Houston’s unemployment rate stood at 4.1% as of December, aligning with national statistics.

Supporting Houston’s Economy

In a further boost to the local economy, Oneok and MPLX have announced plans for a $1.8 billion investment to construct a 400,000-barrel-per-day LPG export terminal in Texas City, reinforcing Houston’s position as a core industrial hub. Last year, developers added 20,355 units to the Houston market, surpassing the average annual additions of 17,000 units seen from 2017 to 2024.

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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