ROUND ROCK, TEXAS — Matthews Real Estate Investment Services, a California-based brokerage firm, has negotiated the sale of a 270-unit self-storage facility in the northern Austin suburb of Round Rock. Life Storage operates the facility at 506 McNeil Road, which was originally constructed in 1980 and totals 28,450 square feet of net rentable space. Austin McLeod of Matthews represented the undisclosed seller in the transaction. The buyer and sales price were also not disclosed.
MUNDELEIN, ILL. — Colliers has arranged the sale of a 195,375-square-foot industrial building in Mundelein, a northern suburb of Chicago. The sales price was undisclosed. Known as Route 60 Logistics Center, the property is located at 1300 Allanson Road just west of a four-way interchange at I-94 and Route 60. Completed in 2021, the facility is fully leased to two tenants. Jeff Devine, Steve Disse and Tyler Ziebel of Colliers represented the sellers, Affinius Capital and Venture One Real Estate. An institutional real estate investor purchased the asset.
CONYERS, GA. — The Storage Acquisition Group (TSAG) has purchased a 911-unit self-storage facility located at 4489 McDonough Highway in Conyers, about 30 miles southeast of Atlanta. The 76,125-square-foot asset was the final facility of TSAG’s 18-property portfolio purchase from True Self Storage that spans 13,714 units across 10 states. The sales price was not disclosed. Bill Sitar Jr., John Cranley, Andrew Burachinsky and Monty Spencer led TSAG’s acquisition team on an internal basis.
SAN DIEGO — Boston-based Rockpoint has completed the disposition of a two-building industrial property located in San Diego’s Otay Mesa neighborhood to Badiee Development. Financial terms of the transaction were not released. The sale is the third in a series of three industrial properties that Rockpoint and Badiee jointly purchased and developed and completes Rockpoint’s realization of all three properties. Located at 2080 Sanyo Ave. and 9350 Airway Road, the 243,000-square-foot asset offers 32-foot clear heights, a desirable dock door ratio, access to the 125 and 905 freeways and the flexibility to accommodate multiple tenant configurations in each building. Rockpoint and Badiee acquired the 15-acre site in June 2021 and subsequently developed the two industrial buildings.
PHOENIX — Berkeley Partners has completed the disposition of Pima Street Logistics Center, a standalone industrial building on 4.2 acres in Phoenix, to Ares Management Real Estate fund for an undisclosed price. Situated in the city’s Sky Harbor submarket, the 97,240-square-foot Pima Street Logistics Center offers a multi-tenant layout, multiple storefronts, LED lighting and approximately 0.5 acres of secured yard. At the time of sale, the asset was fully leased to three tenants. Will Strong, Michael Matchett and Molly Hunt of Cushman & Wakefield’s National Industrial Advisory Group – Mountain West represented the seller in the transaction. Ares Industrial Management will manage the asset.
By Taylor Williams In the eyes of some commercial brokers, especially those who represent tenants, there actually is such a thing as too little vacancy. When markets are running super-hot, meaning demand is far outstripping supply, tenants have minimal options and often end up paying premiums just to be able to secure space. That’s great for landlords — to a point — because markets can only bear so much rent growth in so much time before tenants start looking for workarounds to physical occupancy. Enter the Dallas-Fort Worth (DFW) industrial sector, which has been on fire for the past seven-plus years. Explosive volumes of new deliveries, frenetic paces of absorption, stiff competition for space, record levels of rent growth and a national coming-out party as an undeniable Tier 1 market have all been hallmarks of this activity. But such torrid paces of growth were never really sustainable in perpetuity, and although both the supply and demand sides of the market have cooled, the slowdown in some ways reflects a return to healthier dynamics. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements …
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C-PACE Maintains Appeal in Lower Interest Rate Environment
The Federal Reserve’s decision to begin aggressively hiking the federal funds rate in 2022 threw the commercial real estate market into turmoil. Property investors found it difficult to refinance much cheaper short-term loans that were often used to renovate or develop properties. However, the interest rate spike greatly enhanced the viability of commercial property assessed clean energy (C-PACE) financing, a type of loan that becomes an assessment that borrowers pay along with their tax bill. The program emerged more than a decade ago and generally pays for energy, water and seismic resiliency upgrades in new construction and rehabs, including retroactively. As a result, developers embraced C-PACE as they sought ways to pay down debt to secure new financing or loan extensions and modifications. Sponsored: A smarter way to finance your next CRE project – PACE Loan Group Now that the Federal Reserve has reversed course with its 50-basis-point federal funds rate reduction in September — and with Wall Street anticipating additional rate cuts before the end of the year — will C-PACE demand start to cool? Don’t count on it, says Rafi Golberstein, founder and CEO of PACE Loan Group, a direct lender of C-PACE financing based in Minneapolis, Minn. …
FORT WORTH, TEXAS — Google has signed a 1.1 million-square-foot industrial lease in Fort Worth, according to reports from multiple news outlets, including Dallas Morning News and the Dallas Business Journal. The latter publication reports that the building is located within Majestic Silver Creek Business Park, a 520-acre development on the city’s west side that is owned by California-based Majestic Realty. The DBJ also reports that the deal is part of a larger initiative in which the California-based tech giant pledged to invest $1 billion in Texas markets to support its cloud infrastructure and data center operations.
JACKSONVILLE, FLA. — CBRE Capital Markets’ Debt & Structured Finance team has secured a $61.3 million loan for Florida Gateway Logistics Park – Building 800, a new 1 million-square-foot warehouse located at 9909 Pritchard Road in Jacksonville. Brian Linnihan, Mike Ryan, Richard Henry and Taylor Crowder of CBRE’s Atlanta office arranged the loan through KKR on behalf of the borrower, Dallas-based Hillwood Investment Properties. Other teams of the financing were not disclosed. Built in 2023, the warehouse sits on 52 acres and is fully leased to an undisclosed third-party logistics company. The cross-dock building features 40-foot clear heights, 290 trailer spaces and 511 auto parking spots. Building 800 is situated within Florida Gateway Logistics Park, which at full build-out will span 3.1 million square feet across seven buildings.
MCDONOUGH, GA. — Atlanta-based tire manufacturer Kumho Tire USA has fully leased 210 Interstate South Drive, a 428,160-square-foot cross-dock industrial facility located in the south Atlanta suburb of McDonough. Price Weaver and Hooper Wilkinson of Colliers represented the tenant in the lease negotiations. Bob Currie, Brad Pope, Reed Davis and Hannah Dillard of JLL represented the landlord, Dermody Properties. The distribution center is located less than one mile from I-75 and 24 miles from Hartsfield-Jackson Atlanta International Airport. The facility features 28-foot clear heights, 101 dock-high doors, 147 trailer storage spaces and ESFR sprinklers. The property was built in 2000, according to LoopNet Inc.