HOUSTON — Newmark Knight Frank (NKF) has negotiated a 107,571-square-foot industrial lease extension at 502 Garden Oaks Blvd. in Houston. Griffin Rich and Reggie Beavan III of NKF represented the tenant, Kulkoni Inc., a supplier of wire ropes, cables and chains, in the lease negotiations. Insite Realty Partners represented the landlord, Billingsley Pine Forest #19 Ltd.
CHAMBLEE, GA. — A joint venture between MidCity Real Estate Partners and Anchor Capital Partners has acquired 5616 Peachtree, a 42,500-square-foot industrial building in downtown Chamblee. The owners plan to immediately begin construction to reposition the building into a 36,500-square-foot office building. The asset will be extensively renovated with all new base building features and new tenant interiors. Winter Construction will serve as the general contractor for the renovations, and will occupy half of the building upon completion. The joint venture expects the building will be move-in ready in February 2020. Patterson Real Estate Advisory Group arranged a construction loan and equity financing on behalf of the borrowers. First Citizens Bank provided the construction loan. The joint venture paid $3.5 million for the existing industrial building. The building is located two blocks from the $2 billion Assembly Yards in Doraville and 18 miles northeast of downtown Atlanta.
PLANO, TEXAS — Marcus & Millichap has arranged the sale of a 24,464-square-foot industrial property located at 1304 Summit Ave. in Plano. The asset was built on 2.3 acres in 1981. Adam Abushagur of Marcus & Millichap marketed the property on behalf of the seller and procured the buyer, both of which were private investors.
MILWAUKEE — Strategic Storage Growth Trust II Inc. (SSGT II) has acquired a newly constructed, 770-unit self-storage facility in Milwaukee for an undisclosed price. Located at 3420 W. Capitol Drive, the facility is situated on 3.9 acres and comprised of approximately 83,000 rentable square feet. The property features drive-up units, climate-controlled units, a covered loading area and gate access. SSGT II is a private real estate investment trust sponsored by an indirect subsidiary of SmartStop Self Storage REIT Inc.
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.