INDIANAPOLIS — Colliers International has negotiated the sale of a two-building, 166,119-square-foot industrial portfolio in Indianapolis for $6.6 million. The properties, located within the Stout Field Industrial Park, are fully leased to Progressive Logistics and Micronutrients. Alex Cantu and Alex Davenport of Colliers brokered the transaction on behalf of the seller, Progressive Logistics. The O’Donnell Group Inc. purchased the portfolio. This is the first acquisition in the Indianapolis market for the California-based firm.
GLEN BURNIE, MD. — Chesapeake Real Estate Group LLC (CREG) and EverWest Real Estate Investors LLC have signed a 500,400-square-foot lease with Best Buy at Brandon Woods III, a 259-acre industrial park in Glen Burnie, roughly 11 miles south of Baltimore. Matt Laraway and Scott Skogmo of CREG represented the company internally in the lease transaction, and Michael Royce of Avison Young represented Best Buy. CREG acquired the site from Exelon Corp. last year, and through a partnership with EverWest, will build up to 1 million square feet of industrial space. CREG and EverWest broke ground on the speculative facility at 7550 Perryman St. last year. Best Buy is scheduled to move into the new warehouse in March 2019, utilizing the space to distribute large products to stores throughout the Mid-Atlantic region. The building will also serve as a hub for the home delivery and installation of major appliances and large TVs, and a portion of the space will contain Best Buy service and repair technicians for consumer electronics and appliances. Best Buy plans to consolidate three existing locations throughout the Baltimore-Washington, D.C., metropolitan area to occupy the new building. In addition to the facility for Best Buy, CREG and …
PHOENIX — Los Angeles-based CBRE Global Investors Acquisitions has purchased Southwest Industrial Center, an industrial asset located at 7775 W. Buckeye Road in Phoenix. Houston-based Hines sold the property for $48.5 million. Constructed in 2015, the 684,420-square-foot facility features 32-foot clear heights and Class A cross-dock distribution space. Bo Mills, Mark Detmer, Ryan Sitov, Marc Hertzberg and Anthony Lydon of JLL Capital Markets represented the seller in the transaction.
CITY OF INDUSTRY, CALIF. — Realty Advisory Group has arranged the sale of an industrial property located at 15250 Don Julian Road in City of Industry. Cordia Capital Management acquired the 78,600-square-foot property for an undisclosed price. Situated on 3.8 acres, the facility features 25-foot to 29-foot ceiling heights, seven dock-height positions and future divisibility. At the time of sale, Golden West Packaging Group fully occupied the property. Mark Repstad and John Repstad of Realty Advisory Group represented the undisclosed seller and the buyer in the transaction.
As the e-commerce industry continues to grow and evolve, demand for industrial warehouse product located in dense urban areas situated with access to transit infrastructure, particularly air transit, has grown. The industrial sector has been experiencing multiple years of record rent growth, both locally in New York City and nationally, with average asking rents reaching nearly $30 per square foot in western Brooklyn and parts of Queens. This rapid rise in rents is driving property values higher and generating robust investor demand for this asset class. By way of example, the newly constructed FedEx warehouse in Maspeth, Queens recently sold for nearly $750 per square foot. Simultaneously, we are seeing the evolution and realignment of the supply chain to match a changing retail landscape. E-commerce sales have caused a 300 percent increase in the demand for logistics and distribution spaces, as opposed to traditional brick-and-mortar retail locations. The impact of e-commerce will only continue to accelerate, and the need for new industrial product will grow along with it. For every $1 billion increase in e-commerce sales, an additional 1 million square feet of distribution space will be required. And it’s not solely e-commerce companies that are starting to think about …
WISCONSIN AND PENNSYLVANIA — Brennan Investment Group LLC has acquired a three-building industrial portfolio totaling 500,081 square feet in metro Green Bay, Wisconsin, and northeastern Pennsylvania. The purchase price was not disclosed. Progressive Converting Inc., a paper converting company, fully occupies the properties, which include the company’s corporate headquarters and primary manufacturing facilities. Brennan is based in Chicago.
GARLAND, TEXAS — Under the auspices of a limited partnership, Henry S. Miller Cos. (HSM) has developed a 743-unit self-storage facility in the northeastern Dallas metro of Garland that will open on Saturday, Sept. 8. The property encompasses 77,000 net rentable square feet across four buildings. About 87 percent of the units are climate-controlled. Pennsylvania-based self-storage REIT CubeSmart will manage the facility.
MACUNGIE, PA. — Markward Group has orchestrated the sale of a 44,227-square-foot flex building in Macungie. Located at 111 Lehigh St., the 2.6-acre property is approximately 11 miles south of Allentown. Markward Group represented both the seller, Narsu and Ramani Tatikoia, and the buyer, Luicana Unique Design, in the transaction. Luicana Unique Design is a Kitchen and Bathroom remodeling company and will occupy a portion of the building.
The metro Albuquerque industrial market reported more than 39 million square feet of total industrial space as of year-end 2017. The two largest categories of occupied space were warehouse/distribution (12.5 million square feet with 5.5 percent vacancy) and manufacturing (12.55 million square feet with 3.5 percent vacancy). The overall market vacancy rate at the end of 2017 was 5.7 percent for all industrial uses in buildings with more than 10,000 square feet. New Mexico added about 11,000 non-agricultural jobs from February 2017 through February 2018. The Albuquerque MSA added 5,800 jobs — a 1.5 percent increase — over this period, or more than half of the new jobs added in New Mexico. Albuquerque’s unemployment rate was 5 percent as of February, which is a notable improvement over the 6.2 percent unemployment rate in February 2017. During this period, the private service-providing industries grew by 3,100 jobs, or 1.2 percent, while the goods-producing industries (warehouse and manufacturing users) added 2,300 jobs, representing a gain of 6.2 percent. Albuquerque’s industrial market experienced positive net absorption of more than 261,000 square feet during the fourth quarter of 2017. This was the highest net absorption since the fourth quarter of 2015, and the second-highest …
ATLANTA — The industrial sector is busy riding the e-commerce wave, pushing demand for warehouse space to new heights. But land scarcity and changing investor preferences are forcing developers to get creative with their projects, making flexibility a top priority in today’s market. “The industry is changing so quickly, and Amazon is driving that,” said David Welch, president of Robinson Weeks Partners, an industrial real estate development and investment firm based in Atlanta. “We’ve had to be as flexible as possible because the large users aren’t waiting for build-to-suits — they want it now.” Welch’s comments were made during the industrial development panel at the first annual Intersection of Industrial and Retail in the Southeast conference, held Thursday, Aug. 23 at the Westin Buckhead in Atlanta. Sponsored by InterFace Conference Group and Southeast Real Estate Business, the half-day event drew more than 170 industrial and retail professionals from across the region. Joining Welch on the panel were Todd Carter, partner at Exeter Property Group; Mike Demperio, partner and vice president of CRG; Brian Cardoza, senior vice president of Rooker; John Barker, president and chief operating officer of Red Rock Developments; and Alfredo Gutierrez, president of SparrowHawk, who moderated the panel. …