HOUSTON — STREAM Capital Partners has executed the sale-leaseback of two industrial properties located in Houston. The properties are located at 1300 Gazin St. and 5633 Old Clinton Road. 1300 Gazin St. spans 95,435 square feet, while 5633 Old Clinton Road spans 45,135 square feet. MW Industries occupies both buildings utilizing a net lease. An unnamed REIT was the buyer.
HANOVER, MD. — Trammell Crow Co. (TCC) and Principal Real Estate Investors (PREI) have closed on the purchase of a 26.5-acre site located at 7565 Harmans Road in Hanover, a city within the Baltimore-Washington Industrial Corridor. The site will be the future home of BW Gateway, a two-building, Class A industrial complex totaling 290,000 square feet. Upon completion, the development will include two rear-loaded buildings comprising 151,000 and 138,000 square feet. The buildings will feature 32-foot clear heights, ESFR sprinklers, T-5 lighting and 45 trailer spaces. Construction on BW Gateway will start immediately. TCC and PREI have selected Robert Clements and Bob Smith of KLNB to lease BW Gateway. The design team includes general contractor Glen Arm Building Co. and architect MGMA. Matt Laraway of Chesapeake Real Estate Partners and Curt Stanton of Paine/Wetzel Associates represented the seller of the land, and Clements represented TCC and PREI in the transaction.
ACWORTH, GA. — Papa John’s International Inc. is locating its new regional hub in southwest Cherokee County. The 110,000-square-foot distribution and warehouse space will supply more than 400 Papa John’s stores across seven states. The Louisville-based pizza chain currently has 10 full-service regional production and distribution centers in the United States, which Papa John’s refers to as Quality Control Centers (QCCs). The QCCs manufacture and supply pizza dough, food and paper products, along with smallwares and cleaning supplies, to the stores in their region. The QCCs are operated by PJ Food Service Inc., a subsidiary of Papa John’s. The new QCC will occupy space at Majestic Realty Co.’s building located off of Highway 92 and Northpoint Parkway in Acworth. The new QCC will result in 106 jobs with an average wage of more than $60,000 per year and more than $15 million in capital investment. Papa John’s worked closely with Site Selection Group LLC, the Georgia Department of Economic Development, the Metro Atlanta Chamber, Georgia Power and the Cherokee Office of Economic Development in choosing southwest Cherokee for its new regional hub.
SAN FRANCISCO — A joint venture between SKS Partners LLC and ProspectHill Group has purchased the McGuire Building, a 140,000-square-foot industrial property in San Francisco, for $47 million. The building is located at 1201 Bryant St., within the South of Market (SOMA) district. The JV plans to redevelop the space to re-introduce it in “like-new” condition, per the facility’s production, distribution and repair zoning. Tim Mason and Gerald Norton of Binswanger represented the seller, Kohler Co., in this transaction.
MESA, ARIZ. — A joint venture between Harvard Investments and Lincoln Property Co. (LPC) has purchased Riverview Point in Mesa for $34.3 million. The two-building property will be part of the JV’s new Waypoint office campus, which will be situated along the Loop 202 at the borders of Tempe, Scottsdale and Mesa. The new 34.5-acre development will include the recently completed Waypoint One, as well as Waypoint Two, which has yet to break ground. Riverview Point was built in 2008. It is currently 98 percent occupied. Notable tenants include Ashton Woods, Mitel Corp. and Udall Shumway PLC. It also serves as the corporate headquarters for Nextcare. The JV plans to renovate Riverview Point as it creates the cohesive Waypoint office campus. LPC will manage all four buildings at the project. CBRE’s Barry Gabel and Chris Marchildon represented the seller, R&R Riverview LLC, in the transaction. The financing partner is BMO Harris.
REDLANDS, CALIF. — Munchkin has leased 341,280 square feet of industrial space at Prologis Redlands Distribution Center. The center is located at 27334 San Bernardino Ave. in Redlands. The infant and toddler product designer and manufacturer will use the space as its new regional warehouse and distribution facility. JLL’s Tim O’Rourke and Mike McRoskey represented Munchkin in the deal. CBRE’s Tyson Chave represented Prologis in the lease transaction.
NEW YORK CITY — Cushman & Wakefield has arranged the sale of the FreshDirect facility, located at 23-30 Borden Ave. in Long Island City. Fresh Property I LLC sold the property to Atlas Capital for $48 million. The property totals approximately 276,705 square feet on a 654-foot by 329-foot irregular lot, 90 percent of which includes state-of-the-art material management and refrigeration/freezer systems. Since acquiring the property in 1999, Fresh Property I had completed substantial capital improvements and upgrades to a majority of the buildings systems. Bob Knakal, Jonathan Hageman and David Chkheidze of Cushman & Wakefield represented the seller, while Scott Rosen of Akron Trotter Property Group represented the buyer in the transaction.
PHILADELPHIA AND WARMINSTER, PA. — Newmark Grubb Knight Frank (NGKF) has brokered the sales of two industrial properties in the greater Philadelphia area. In the first transaction, Wolf Pack LP acquired a 21,500-square-foot industrial building, located at 3015 Darnell Road in Philadelphia, for $1 million, or $47.67 per square foot. Neil Shupak and Justin Bell of NGFK represented the sellers, Jerry and Brenda Frebowitz, in the transaction. In the second deal, D&B Pharma Real Estate Partners acquired an industrial building located at 200 Park Ave. in Warminster for $3.8 million, or $25.67 per square foot. Situated on 5.8 acres, the 150,000-square-foot building features 26-foot ceiling heights, off-street parking and loading capabilities. Shupak and Bell represented the undisclosed seller, while Kurt Eisenschmid of Penn’s Grant Realty represented the buyer in the transaction.
AURORA, ILL. — Principle Construction Corp. will construct a new 375,000-square-foot speculative industrial building in Aurora, approximately 40 miles west of Chicago. Seefried Industrial Properties is the project developer. The building, which will be located at 1600 Sequoia Drive, will be situated within the Prime Aurora Industrial Park. The new facility is being built on 19 acres and can cater to a single user or multiple tenants. Features will include 32-foot clear heights, 2400 amps and 480 volts of power, ESFR sprinklers, two drive-in doors, 36 dock positions and parking for 312 cars. Harris Architects will design the building, and Colliers International will market the property for sale or lease.
Metropolitan Milwaukee has experienced a robust industrial real estate market for the past several years. This strength should continue in 2016 and for the foreseeable future. Like many other metro areas, Milwaukee’s industrial sector experienced slow but steady economic growth as it emerged from the Great Recession. However, unlike many other metro areas, Milwaukee has not yet exhibited a strong uptick in new industrial development. Minimal speculative construction has occurred during the past few years. Consequently, while demand for industrial space has continued to increase, supply has remained fairly flat. This phenomenon of increased absorption without a corresponding increase in new product coming to market has driven down the overall vacancy rate to slightly under 5 percent, near a record low, according to Xceligent. Moreover, the new industrial development that has occurred has been primarily driven by users expanding, relocating or consolidating existing facilities, or by new build-to-suit or speculative developments undertaken by Milwaukee-based firms such as Zilber Property Group, Luterbach Properties, Briohn Building and Wangard Partners. Larger regional and national industrial developers such as Centerpoint Properties and First Industrial Realty Trust, which once drove industrial development in Milwaukee, ceased construction in Milwaukee during the Great Recession and have not …