COON RAPIDS, MINN. — Newmark Knight Frank (NKF) has brokered the sale of a 63,436-square-foot industrial building in Coon Rapids, a northern suburb of Minneapolis, for $2.4 million. The property is located on 24 acres at 9534 Foley Blvd. Java Enterprises LLC sold the building to Phoenicia Properties Corp. Dan Friedner and Jay Chmieleski of NKF represented both parties in the transaction.
WEST JORDAN, UTAH — Amazon.com has announced plans to open a new fulfillment center in West Jordan. Seefried Industrial Properties will develop the more than 1 million-square-foot facility. The new fulfillment center will create more than 800 full-time jobs starting at $15 an hour with comprehensive benefits starting on the first day of employment, according to Amazon. The company currently employs more than 2,000 full-time associates throughout Utah. The center will be used to organize, pack and shop large customer items, such as sports equipment, patio furniture, fishing rods, pet food, kayaks, bicycles and larger household goods. Additional development details, including a timeline, have not been released.
LOS ANGELES — Terreno Realty Corp. has purchased an industrial asset located in downtown Los Angeles from an undisclosed seller for $18.1 million. The property consists of five industrial buildings located at 130-134 and 140-148 S. Anderson St., 1319 Mono St. and 135-151 S. Utah St. Totaling 53,000 square feet, the asset features 11 grade-level loading positions and parking for 83 cars. At the time of sale, the asset was 90 percent leased to seven tenants, all of which expire within the next three years. Terreno Realty acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay area, Seattle, Miami and Washington, D.C.
E-commerce has been driving demand for industrial real estate for several years, but steadily increasing online sales coupled with growing consumer expectations for speedier delivery continues to put pressure on merchants to bridge the last mile to their customers. Considering that these projects are located in densely populated areas where land and available product are typically scarce, developers are increasingly converting obsolete warehouse and other properties into fulfillment centers. For space that matches their needs, tenants are less price-sensitive than they have been historically, says Kenneth Salzman, SIOR, executive managing director and principal for commercial real estate service provider Lee & Associates. But tenants are avoiding taking more space than they need just to have it available in the future, he adds. “It’s less a space race and more that businesses want to reach their customers more quickly,” explains Salzman, who is located in the company’s New York office. “And the demand is not just coming from Amazon and other online retailers — traditional companies want to be able to ship their products to their customers more quickly because they’re competing with online resources, as well.” Online retailers and shippers are typical tenants of the buildings — even the U.S. …
FORT WORTH, TEXAS — American Specialty Health, a provider of musculoskeletal and fitness solutions, has signed a 164,000-square-foot office lease at Heritage Commons IV at AllianceTexas in Fort Worth. Steve Aldrich and Ian Kinne of Hillwood represented the landlord, Griffin Capital Essential Asset REIT, in the lease negotiations. Jenny Schreiner and Jon Altschuler of Altschuler & Co. represented the tenant. Mercedes-Benz Financial Services previously occupied the building before moving into a new space at AllianceTexas.
ODESSA, TEXAS — Marcus & Millichap has brokered the sale of the Guardian Self-Storage portfolio, which comprises 823 units across three facilities. The facilities span 143,000 net rentable square feet. Brandon Karr of Marcus & Millichap represented the seller, a private investor based in the Permian Basin that developed the portfolio in 2000. Karr also secured the buyer, a Texas-based private investment group.
RALSTON, NEB. — NorthMarq has arranged a $1.4 million loan for the acquisition of Ralston Business Park in Ralston near Omaha. The 59,488-square-foot industrial property is located along 77th Street. Steve Ruff of NorthMarq arranged the 10-year loan, which features a 25-year amortization schedule. A life insurance company provided the loan.
HOUSTON — NAI Partners has negotiated a 41,866-square-foot industrial lease at 4300 Windfern Road in Houston for Henry Avocado Corp., a year-round grower and distributor of the fruit. Darren O’Conor and John Ferruzzo of NAI Partners represented the tenant in the lease negotiations. The name and representative of the landlord were not disclosed.
RENO, NEV. — Panattoni Development Co. has completed the construction of Longley Commerce Center, a Class A industrial building located at 6550 Longley Lane in Reno. Built on the last large industrial site in south Reno, the asset features 270,975 square feet of flex units ranging in size from 8,400 square feet to 16,800 square feet, as well as bulk industrial units from 24,000 square feet to 218,775 square feet. The project features 30-foot clear heights in all suites, ESFR sprinkler systems, LED lighting and build-to-suit office space. Additionally, the property’s location allows access to Interstate 580, a variety of amenities and the Reno-Tahoe International Airport. Longley Commerce Center is owned by Longley Commerce Center LLC, a joint venture between Markaz and Panattoni Development. Alston Construction served as general contractor for the project, which began in July 2018. Kidder Mathews is providing brokerage services for the project.
GRAND BLANC, MICH. — Stan Johnson Co. has negotiated the sale of Waretech Industrial Park in Grand Blanc for $14.9 million. The multi-tenant industrial property is located at 7075 S. Dort Highway in suburban Flint. JASCO International, Joshen Paper & Packaging and WGS Global Services fully occupy the 667,000-square-foot property. Rob Gemerchak and BJ Feller of Stan Johnson represented the seller, Dallas-based developer Covington Group. Triyar Cos. LLC, a Los Angeles-based private equity group, purchased the asset.