PASSAIC, N.J. — A partnership between Los Angeles-based finance and investment firm PCCP LCC and Atlanta-based private equity group Stonemont Financial will develop a 295,500-square-foot warehouse in the Northern New Jersey community of Passaic. The site spans 17 acres. Building features will include a clear height of 40 feet, 185-foot truck court depths, 40 dock doors, two drive-in doors, 167 car parking spaces and 55 trailer parking stalls. Construction is set to begin in February and to be complete in spring 2024.
Data Center Developers Consider Unconventional Sites, Streamlining Strategies to Meet Immense Demand
Data center development is simultaneously growing by leaps and bounds as well as suffering from its own success. The easy-to-develop sites have been snapped up and demand for additional data and cloud services continues to grow, forcing developers to look beyond the obvious locations for sites. This can entail running into less-than-obvious delays in the development process. Data centers reliably store and transmit the deluge of information that makes modern life possible. The factors driving the need for data centers — enterprise demand for cloud services, dependence on 5G cell networks, artificial intelligence technology, edge computing capabilities, social media use and streaming needs — will continue to grow exponentially in the coming years. According to a September 2022 report by advisory company Arizton, approximately 2,825 megawatts of power capacity will be added to the data center market in the next five years. The same report forecasts the U.S. data center construction market will reach $25 billion by 2027, up from $20 billion in 2021. Data centers are utility-intensive property types, and the sites that can support their formidable power, communication and water needs often require high-level considerations right from the start. How can the development process for such projects be streamlined …
COLUMBUS, OHIO — Marcus & Millichap has arranged the sale of a self-storage portfolio comprising 10 Boardwalk Storage facilities located in Alabama, Georgia and Tennessee. The properties total 3,369 units across 569,530 square feet. Gabriel Coe, Nathan Coe and Brett Hatcher of Marcus & Millichap arranged the sale on behalf of the undisclosed seller and procured the buyer, which was also not disclosed. At the time of sale, the portfolio, which includes a mix of climate-controlled and non-climate-controlled units, was 64 percent leased. The Alabama property is located in the city of Opelika, with the Georgia properties located in Dahlonega, Clermont, Loganville, Perry and Jasper. In Tennessee, the facilities are situated in Ooltewah, Chattanooga and Soddy-Daisy. Marcus & Millichap’s brokers of record in Alabama, Georgia and Tennessee are Eddie Greenhalgh, John Leonard and Jody McKibben, respectively.
QUEEN CREEK, ARIZ. — Thompson Thrift has started construction on the first phase of Germann Commerce Center, a 1 million-square-foot industrial development in Queen Creek, approximately 35 miles southeast of downtown Phoenix. Located on the southwest corner of Germann and Meridian roads, the first phase will consist of 400,000 square feet of speculative light industrial space spread across five standalone buildings on 26 acres. The facilities will feature front-park/rear-load industrial space, 28-foot to 32-foot clear heights and frontage on East Germann Road. At full buildout, the multi-phase project will provide up to 1 million square feet of warehouse, distribution, light assembly and manufacturing space covering 68 acres. Thompson Thrift plans to complete the first phase in first-quarter 2024, with build-to-suit and for-sale options in Phase II following immediately after.
MISSOURI CITY, TEXAS — SUNRGY Solar Distribution has signed a 47,332-square-foot industrial lease in the southwestern Houston suburb of Missouri City. A.J. Williams and Travis Land of Partners, the locally based investment and brokerage firm formerly known as NAI Partners, represented the tenant in the lease negotiations. Beau Kaleel and Brooke Swerdlow with Cushman & Wakefield represented the landlord, Logistics Property Co.
As port authorities around the country invest billions of dollars in infrastructural improvements, industrial users are taking notice and looking for sites near all the action. In the Southeast, the elevated demand for new industrial space near the Port of Savannah and Port of Charleston is pushing the boundaries as far as what’s considered normal levels for property performance indicators such as new construction, rent growth and leasing activity. “It’s hard to say that anything is ‘normal’ right now — there are a lot of new phenomena out there,” says Robert Barrineau, senior vice president of CBRE’s Charleston office. “We are seeing nationally now that a tie to a seaport as being key for economic growth and for operational efficiencies for companies.” In one of the bigger announcements in 2022, Hyundai Motor Group chose a 3,000-acre site in Bryan County, which is close to both the Port of Savannah and Interstate 95, for its $5.5 billion manufacturing plant. Construction is already underway, and the facility should be operating at full capacity, which entails production of 300,000 units annually, by the first half of 2025. The South Korean automotive giant intends to use a combination of local labor and AI technology …
NEW YORK CITY AND CHICAGO — A partnership between New York City-based Arch Street Capital Advisors and Chicago-based Brennan Investment Group has sold a national portfolio of 11 industrial properties totaling approximately 2 million square feet. The sales price and buyer were not disclosed. The partnership acquired the portfolio in 2017 for $100 million and implemented a value-add program. The assets are primarily located throughout major markets in the Midwest and Southeast, including Chicago; Minneapolis; Jacksonville, Fla.; and Birmingham, Ala. Arch Street and Brennan launched their partnership in 2011. Since that time, the duo of investment firms has executed seven such ventures in which it acquires, operates and disposes of a portfolio of industrial assets. The partnership will continue to primarily target single-tenant, net-leased industrial assets and/or portfolios as the cornerstone of its investment strategy. “The success of this portfolio demonstrates the unique benefits of this strategy, which provides both residual upside and consistent yield,” says Christopher Collins, vice president of asset management at Arch Street. “We continue to remain bullish on warehouse, distribution and manufacturing assets in both the U.S. and Europe.” Arch Street is a full-service real estate investment and advisory firm that specializes in advising investors on …
JACKSON COUNTY, GA. — Trammell Crow Co. (TCC), with joint venture partner CBRE Investment Management, has broken ground on the first phase of Jackson 85 North Business Park, an industrial park in Jackson County. Situated roughly 60 miles northeast of Atlanta, the industrial development will comprise 2.3 million square feet upon completion. The first phase will feature two buildings totaling more than 1.5 million square feet. Building 1 will comprise 538,450 square feet, and Building 2 will include 1 million square feet, with delivery scheduled for the first quarter of 2024. Construction of the second phase is expected to begin midway through 2024 and will include a single 713,050-square-foot facility, completion of which is scheduled for 2025. All three buildings will feature 40-foot clear heights, ample power, ESFR fire sprinklers and R-19 roof insulation. Wilson Hull & Neal Real Estate is handling the leasing assignment for Jackson 85 North Business Park.
PORT ST. LUCIE, FLA. — JLL Capital Markets has brokered the sale of a newly developed manufacturing and distribution facility located at 11675 S.W. Tom Mackie Blvd. in the South Florida city of Port St. Lucie. Bridge Net Lease, a subsidiary of Bridge Investment Group, acquired the 411,852-square-foot property, which is situated within Tradition Center for Commerce, a 1,247-acre master-planned development with office, retail, industrial, multifamily, recreational and entertainment space. Jason DeWitt, Luis Castillo, Brian Shanfeld, Cody Brais and Josh Katlin of JLL represented the undisclosed seller in the transaction. The sales price was not disclosed.
WILMER, TEXAS — ALTO Real Estate Investments, a developer with three offices in the United States and one in Israel, will build a 271,339-square-foot industrial project in the southern Dallas suburb of Wilmer. The development, named ALTO Intermodal 45, will be located less than a mile from I-45 and the Union Pacific Intermodal railway and will feature 40-foot clear heights. Construction is scheduled to begin during the first quarter and to be complete by the end of the year. Colliers will market the development for lease.