SAN ANTONIO — Regal Self Storage Development has acquired land at 12615 Judson Road near Interstate 35 in northeastern San Antonio for the construction of a new, Class A facility. Though subject to change, Phase I of the site plan proposed by the seller would deliver 704 units totaling 82,100 net rentable square feet. Phase II would expand the site by 10,800 gross square feet. Jon Danklefs and Michael Mele of Marcus & Millichap represented the seller, a limited liability company, in the land sale. A timeline for construction has not yet been established.
Last month I attended the NAI Global convention in Austin, Texas, and had the opportunity to talk with industrial real estate brokers from around the country. One thing was clear: there are many markets across the country that are facing the same dilemma as we are in West Michigan. The supply of vacant industrial buildings is at an all-time low, and construction costs are rising rapidly. Booming economy The manufacturing industry is extremely strong in West Michigan. Historically known for the automotive and furniture sectors, West Michigan has developed a strong presence in the medical device manufacturing, food processing and aerospace sectors. This diversity is a good indicator of stability for the West Michigan manufacturing sector for the foreseeable future. The strength of the economy has encouraged many companies to expand operations and has attracted numerous out-of-market companies to West Michigan. Low inventory The industrial vacancy rate in the greater Grand Rapids market is currently 1.6 percent, which is historically low. In order to provide some context, in 2012 the vacancy rate was 7.2 percent. Typically, when the vacancy rate is this low, it is a clear indicator that inventory is too low, and the construction of new buildings …
FREDERICK, MD. — St. John Properties has broken ground on three buildings within Arcadia Business Park in Frederick, about 50 miles west of Baltimore. The buildings will total 200,000 square feet when complete and represent Phase I of construction at the 61-acre industrial campus. Arcadia Business Park will total 600,000 square feet across eight buildings at full buildout. Phase I is expected to deliver in the summer.
CHICAGO — A joint venture between High Street Realty Co. and Angelo Gordon has purchased a four-property, 713,555-square-foot industrial portfolio in metro Chicago for an undisclosed price. The multi-tenant properties include: 1010-050 Sesame St. in Bensenville; 11241 Melrose Ave. in Franklin Park; 11939 S. Central Ave. in Alsip; and 6748-6750 S. Sayre Ave. in Bedford Park. Robin Stolberg, Kurt Sarbaugh and Sam Berry of HFF represented the seller, Hackman Capital Partners.
HENDERSON, NEV. — Colliers International has arranged the sale of an industrial asset located within South15 Airport Center at 1775 Executive Airport Drive in Henderson. US Industrial Fund (Panattoni Development) sold the property to BCI IV Executive Airport DC HoldCo (Black Creek) for $51 million. The property features 482,300 square feet of industrial space. Dan Doherty, Susan Borst, Paul Sweetland, Chris Lane and Jerry Doty of Colliers represented the seller in the deal.
FONTANA, CALIF. — Terreno Realty Corp. has completed the sale of an industrial property located at 14605 Miller Ave. in Fontana. An undisclosed buyer acquired the asset for $33.2 million. Situated on 13.1 acres, the 266,000-square-foot property is fully occupied by one tenant on a short-term lease. Terreno originally purchased the property in 2014 for $22.9 million.
TULSA, OKLA. — The Pizzuti Cos., a Columbus, Ohio-based development firm, has broken ground on a $55 million, 800,000-square-foot warehouse and distribution center in Tulsa for Whirlpool Corp., a Michigan-based manufacturer of home appliances. ARCO Construction Co. Inc. is handling the design/build of the facility, which will be situated next to a manufacturing plant that produces 2.1 million cooking products per year. Construction of the facility began in late November and completion is slated for December 2019.
FORT WORTH, TEXAS — Smart Warehousing, an operator and provider of logistics solutions, has entered North Texas via a 269,494-square-foot space within Hillwood’s 26,000-acre AllianceTexas development in Fort Worth. Smart Warehousing was established in 2001 and provides fulfillment, inventory management and value-add software and services to supply chain operators. Reid Bassinger, John Sharpe and Trey Fricke of Lee & Associates represented Smart Warehousing in the site selection and negotiations.
A combination of location and demand for e-commerce continues to drive industrial activity across New Jersey, spurring increased activity in the already robust northern and central regions of the state and driving a frenzy of activity in the south. Unlike some of the previous speculative booms, however, this one appears be carefully thought out and is likely to be sustainable. Northern and Central New Jersey We are seeing an enormous increase in the number of tenants interested in the market who face a limited supply. Across Northern and Central New Jersey, a record low vacancy rate of 3.4 percent is pushing rental rates to an all-time high despite a healthy but cautious building cycle. The region is an inherently attractive one, thanks to its proximity to New York City and Port Newark as well as the ability to reach 60-plus million people in the tri-state area in a matter of hours. Speculative development across North and Central New Jersey is ongoing, and we anticipate a number of legacy sites to be redeveloped during the next two- to five-year period. Of course, the 2008 recession remains on everyone’s mind. Accordingly, speculative velocity is not as robust as it was in previous …
GAINESVILLE, GA. — Georgia Ports Authority will develop a new 104-acre inland port in Gainesville. Currently, containers moving by truck travel 600 miles roundtrip to and from the Port of Savannah. When the new rail yard opens, drivers will be able to make shorter trips from area manufacturers and distribution facilities to the northeast Georgia site. The port is slated to be complete in 2021. Gainesville is located along Interstate 985, about 55 miles northeast of Atlanta. In conjunction with the port announcement, Auto Metal Direct, a distributor of auto body panels and trim for classic cars and trucks, announced it will open a 318,000 square-foot distribution and fulfillment center near the port. Construction will begin soon, and upon completion, the $15 million development will bring 40 jobs to Hall County.