ST. LOUIS — St. Louis-based ElmTree Funds has acquired seven industrial and office properties across the U.S. for approximately $800 million. The single-tenant, net-leased properties span 3.2 million square feet and are fully leased with a weighted average lease term of 13.7 years. The assets are in markets such as Minneapolis, Seattle and Raleigh. ElmTree, a real estate private equity firm that manages capital on behalf of institutional and private investors, made the acquisitions in the first quarter of 2022.
DENVER — Stockbridge has acquired an eight-building industrial portfolio in Denver. The name of the seller and acquisition price were not released. Totaling more than 1.3 million square feet of infill industrial space, the portfolio includes: Table Mountain Commerce Center, 16163 W. 45th Drive West 53rd Place, 445 W. 53rd Place Leyden I, 4735-4795 Leyden St. Leyden II, 4725 Leyden St. Denver Business Center 5, 11175 E. 55th Ave. Denver Business Center, 11605 E. 55th Ave. Moline Distribution Center, 4865 Moline St. Moncrieff Distribution Center, 14303 E. Moncrieff Place Built between 1971 and 2009, the buildings offer clear heights ranging from 22 feet to 32 feet. At the time of sale, the portfolio was fully leased to 25 tenants in variety of industries, including electrical supplies; warehouse and distribution; manufacturing; construction and building materials; technology; and consumer goods. Jim Bolt, Tyler Carner, Jeremy Ballenger and Jessica Ostermick of CBRE’s Denver office represented the seller in the deal.
SAN DIEGO — JLL Income Property Trust has purchased South San Diego Distribution Center, a three-building industrial portfolio in San Diego. Affiliates of Murphy Development Co. sold the asset for $158.5 million. Totaling 665,000 square feet, the three properties were 96 percent leased to eight tenants at the time of sale. The investment was acquired through the assumption of an in-place, $72.5 million first mortgage at a 3.18 percent fixed interest rate. The financing features interest-only payments for another four years with maturity in 2031. The acquisition also includes the issuance of $75 million in operating partnership units to the sellers. The balance of the purchase was funded with cash.
DENVER, COLO. — NAI Shames Makovsky has brokered the sale of an industrial building located at 4101 and 4201 E. 48th Ave. in Denver. Jeremy Fein sold the asset to 48th and Colorado LLC and East 48th LP LLC for $8.7 million in an off-market transaction. The property consists of 95,300 square feet of industrial space. The buyer plans to hold the asset as a long-term investment with significant value-add improvements. Paul Cattin and Adam Hubschman of NAI Shames Makovsky represented the buyer in the deal.
By Taylor Williams Industrial brokers and developers throughout New Jersey and Eastern Pennsylvania are flush with tenant demand, but the frenetic pace and frequency at which revenues and costs change in this market has introduced a whole new set of operating challenges. In terms of the supply side of the market, developers of industrial product, like those of every other property type, have been squeezed by supply chain disruption. Prices and lead times for ordering key materials change radically and often without warning. Developers who try to circumvent these obstacles by ordering way earlier than normal in the process now run an increased risk of having to take delivery of supplies without having all permits and sources of construction financing in place. Such a misfire in timing can create lags in delivery, potentially alienating tenants needing turnkey space and generating additional short-term costs via storage of the materials before construction begins. In addition, misaligning these timelines can spook potential investors that want the certainty of knowing that a project is moving forward. “We’re buying supplies a year in advance and trying to sync up deliveries of those materials with when we expect to have full project approval,” says Peter Polt, …
SUMMERVILLE, S.C. — Indianapolis-based partners Citimark Inc. and Pure Development Inc., along with Charleston-based NCP Capital LLC, have plans to build Coastal Crossroads, a $200 million industrial project in Summerville. Coastal Crossroads will include more than 2.5 million square feet of new industrial distribution and manufacturing space. The project is a 180-acre master planned industrial park with speculative and build-to-suit opportunities. Additionally, about 1 million square feet of space will be available in early 2023 for leasing. Located on Strathmore Road along Interstate 26, the project will be situated within 30 miles or less of three South Carolina Ports Authority terminals. The industrial park will also be 21.1 miles from Charleston International Airport and about 20 miles from downtown Charleston. Bob Barrineau, Tim Raber and Brendan Redeyoff of CBRE will handle leasing and marketing efforts for Coastal Crossroads.
KERNERSVILLE, N.C. — NorthPoint Development has broken ground on Piedmont Commerce Center, a 1.5 million-square-foot industrial park in Kernersville, about 10.6 miles from Winston-Salem. Construction is slated to be complete between the fourth quarter of 2022 and the first quarter of 2023. The expected development cost is $129 million. Piedmont Commerce Center will be a four-building industrial park located at Macy Grove Road and Salem Parkway. The buildings will range from 246,489 square feet to 669,081 square feet. The project will bring 800 full-time jobs to the area, according to NorthPoint. NAI Piedmont Triad is handling the marketing and leasing for Piedmont Commerce Center.
FORT WORTH, TEXAS — A partnership between Phoenix-based developer Creation Real Estate and J.P. Morgan Global Alternatives has broken ground on a 532,535-square-foot industrial project in Fort Worth. The site is located just off Interstate 820 and offers high visibility from that loop. The development will consist of three buildings — two rear-load and one front-load — with clear heights ranging from 32 to 36 feet. LGE Design Build is the architect and general contractor for the project. Holt Lunsford Commercial has been tapped as the leasing agent. Completion is slated for the second quarter of 2023.
ELMENDORF, TEXAS — Marcus & Millichap has arranged the sale of a 232,406-square-foot office and industrial campus located in the southeastern San Antonio suburb of Elmendorf. Built in 2012, the property consists of 11 buildings on a 108-acre site. At the time of sale, the campus, which includes outdoor storage space, was fully leased to oilfield services company Weatherford International (NASDAQ: WFRD). Patrick Doherty, David Houston and James Stewart of Marcus & Millichap represented the seller, Atlanta-based Stonemont Financial Group, in the transaction and procured the undisclosed buyer.
BOYLSTON, MASS. — Rand-Whitney, a packaging company owned by New England Patriots owner Robert Kraft, will open a 384,000-square-foot industrial facility in Boylston, located in Worcester County in the central part of the state. Design-build firm PROCON broke ground on the project earlier this month. When fully operational in April 2023, the new packaging facility will have the potential to manufacture 300 million boxes annually and will add between 50 and 100 new jobs to the local economy.