Marcus & Millichap is pleased to present the opportunity to acquire the property located at 201 West Anaya Road in Pharr, Texas. The subject property consists of approximately 109,737 square feet of distribution warehouse space and is situated on 7.78 acres of land. The multi-tenant asset features a clear height between 24’ and 26’, 19 dock-high doors, and about 124 trailer stalls (including 70 dock-adjacent and 54 off-dock). In 2020, the building underwent significant improvements, including the replacement of a HVAC unit, a new metal roof, and the installation of translucent skylight panels. Located just off South Cage Boulevard (U.S. Route 281), the property has direct access to the Pharr-Reynosa International Bridge (3.5 miles away) and Interstates 2 and 69C (7.2 miles away). The site’s proximity to the Pharr International Bridge makes it well-positioned for tenants to pursue Foreign-Trade Zone (FTZ) designation under the Hidalgo County Regional FTZ program. This status allows qualified users to defer, reduce, or eliminate duties on imported goods, creating a valuable operational and financial advantage for logistics providers, importers, and manufacturers engaged in cross-border trade. FTZ eligibility is a rare and strategic differentiator in this submarket.
The tenants, Kontane Integration and UPS Supply Chain Solutions, Inc., fully occupy the property. Leasing about 61 percent of the property is Kontane Integration (marketed as Kontane Logistics), which is signed to a triple-net lease that expires in February of 2026. With the tenant only paying $4.81 per square foot, this sale creates an approximately 35 percent value-add opportunity by renewing the tenant or reletting the space at current market rates. What started as a small manufacturer of wooden crates for shipping, Kontane Logistics has grown into one of the leading third-party providers of logistics, warehousing, and distribution for internationally traded goods (Kontane). UPS occupies about 39 percent of the property at $7.28 per square foot through December 2029 with above-market 3.0 percent annual rent escalations. The Supply Chain Solutions segment of the company provides logistics and distribution, transportation and freight, consulting, customs brokerage, and international trade services (UPS).
The subject asset is ideally positioned within the relatively small but essential Pharr submarket, containing 6.6 million square feet of industrial space.
The Pharr submarket sits just north of the Pharr-Reynosa International Bridge. Ranked 31st in the nation among 450-plus airports, seaports, and border crossings, the Pharr-Reynosa International Bridge was used to transport $46 billion worth of imports and exports in 2024 (US Trade Numbers). In the 12 months running through Q2 2025, industrial net absorption in Pharr contracted by about -209,000 square feet. With 235,000 square feet of net deliveries supplied during that time, the vacancy rate increased to 7.9 percent, up from 1.2 percent a year earlier. Despite the economic impact of interest rates and tariffs, industrial demand rebounded in Q2, and the submarket’s long-term fundamentals remain intact. Nonetheless, annual rent growth in Pharr was at 1.7 percent in Q2, pushing the average market rent to roughly $9.90 per square foot. With only about 168,000 square feet of industrial space under construction in Pharr, vacancies and rents will largely be dependent upon demand for the foreseeable future (CoStar).
McAllen-Harlingen-Brownsville Metroplex is composed of two metropolitan statistical areas, McAllen-Edinburg-Mission metro and Brownsville-Harlingen metro. Positioned along the Texas-Mexico border and Gulf Coast, the metroplex is home to a combined 1.3 million residents. The area’s strategic location fosters a thriving trade sector, making logistics important drivers of the local economy. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year. Manufacturing firms, including Keppel AmFELS and ESCO Marine, contribute to the area’s diverse economy. The region also boasts a growing aerospace industry, supported by SpaceX’s Boca Chica launch site. The Port of Brownsville serves as a vital deep-water seaport and Foreign Trade Zone, employing over 8,500 individuals. Education and healthcare are strong sectors, with institutions like the University of Texas Rio Grande Valley and major medical centers providing employment opportunities. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0490184)
