GCP Paper started construction this month on a 566K SF manufacturing facility in the northeast Houston suburb of New Caney, cementing the Mexican company’s U.S. presence in the area.
GCP Paper’s facility is expected to wrap up in June 2026 at 19685 Emerald Lane in the East Montgomery County Industrial Park, CBRE said in a press release. The company produces private-label paper products, including toilet paper, tissues and paper towels, which were hot commodities during pandemic-fueled panic buying.
CBRE Capital Markets’ debt and structured finance team secured 80% loan-to-cost construction financing for the project, though CBRE did not disclose the financing amount. Construction will cost an estimated $38.3M, according to a filing with the Texas Department of Licensing and Regulation, Community Impact reported.
GCP is planning a $400M total investment in Montgomery County, the Houston Business Journal reported in July 2023, shortly after GCP Paper bought the 32-acre property.
The facility will be the company’s flagship location in the U.S., according to CBRE.
GCP opened a U.S. arm of the business due to the increased demand for toilet paper shortly after the Covid-19 pandemic began, GCP Paper USA Chief Operating Officer Angel Jimenez told the HBJ. It rented a 236K SF building in the Interwood Distribution Center near George Bush Intercontinental Airport in 2021, and Walmart was its main client at the time.
The Houston Chronicle reported in 2023 that the Montgomery County project would be built in phases over a decade and eventually employ 150 people. The facility is expected to have three paper manufacturing machines and seven converting lines.
GCP’s plans come as Houston rakes in significant manufacturing investments due to tariffs pushing companies to onshore operations. Since President Donald Trump’s inauguration, companies like Apple, Nvidia and Tesla have announced plans for large-scale manufacturing facilities in the Houston region.
Jason Greenway and Emily Loomis with Cadence Bank provided the financing for the deal. Satterfield & Pontikes Construction is the general contractor.
CBRE Capital Markets’ debt and structured finance team, represented by John Fenoglio and Brock Hudson, secured the construction loan in conjunction with Pontikes.