Construction begins on a new cold storage industrial park in San Juan, which is almost sold out

The sun set upon sweeping fields of vegetable crops and farm workers irrigating the crops on the east side of Stewart Road in San Juan on Wednesday evening, but on the west side, the next generation of the Rio Grande Valley’s economy was under construction. 

The new Max Cold storage park will serve as a transit hub for produce grown in Mexico and trucked across the border through the Pharr International Bridge, which is only about four miles away, to grocery store shelves across North America. 

After more than two decades of building retail, commercial, and industrial projects for clients, a Pharr-based construction company is putting shovels in the ground for its own project. 

“One day, we asked ourselves a simple question, ‘Why not us? Why not build something that serves the industry but also directly contributes to the growth and prosperity of our own community?’” said Hector Saenz Jr., director of business operations at Member Construction.

Max Cold is the brainchild of local construction executive Hugo Martinez of Member Construction and is backed by several investors through a few different companies. 

Martinez told the Rio Grande Valley Business Journal in Spanish that he was inspired to invest in the project because of its proximity to the heavyweight commercial corridor where tractor-trailers regularly zoomed by as he spoke – some honking as they drove. 

The first phase of the park, a 105,000-square-foot refrigerated warehouse owned by Texas RGV Investments LLC in McAllen, is expected to cost $21.7 million. 

There are plans for that warehouse to have 36 tractor-trailer docks for a dozen different companies, which could sublease several thousand square feet each, in addition to office space. 

The second phase of the park, which will include a Pro Fresh cold storage warehouse with offices spanning 58,500 square feet, will cost $12.6 million and is owned by M&S Estate Ltd. 

Those projects, financed by International Bancshares Corp., more commonly known as Laredo-based IBC Bank, are estimated to cost $28 million and $14 million, respectively, Martinez said. 

Martinez is closely monitoring the tariff situation, given his new role as owner of a logistics business heavily reliant on import regulations. 

“It has been difficult to adapt, but we have to adapt to the new costs, and this industry cannot stop because produce is fundamental. It is vital for [modern] life,” he said. “We are absorbing those costs.” 

Each day, about 22 million pounds of produce cross the Texas-Mexico border. 

“And it continues to grow,” said Dante Galeazzi, CEO of the Texas International Produce Association. “This road behind us is just a very small piece of what the future is going to hold because soon this road is going to be part of the business loop. And you’re going to see truck after truck coming across here with more than 200 fruit and vegetable commodities from Mexico every single day. And San Juan is going to be perfectly positioned for that.”