GILLETTE, WY. — Stan Johnson Co. has brokered the sale of an industrial building, located at 2600 E. Second St. in Gillette. New York-based AR Global Investments acquired the property from a local Wyoming developer for $7.1 million. Cummins Inc. occupies the 36,720-square-foot building on a double-net-lease basis. Jason Powell and Colin Couch of Stan Johnson Co. represented both parties in the transaction.
The industrial real estate sector is currently undergoing one of the greatest expansionary periods in the nation’s history. Record development, all-time high occupancy and rental rates and strong leasing activity have been a boon to the U.S. industrial market in the last two years. In addition to these fundamental elements that make up a strong sector, there has been a demand driver that has transformed the industrial market more now than ever: e-commerce. Amazon is now the largest industrial occupier post-recession, which is forcing retailers and wholesalers to modernize their supply chain to keep up. E-commerce is not a new phenomenon, but it is becoming increasingly competitive, and is expected to grow another 55 percent in the next four years, according to Colliers International research. E-commerce has reshaped the way people purchase goods, resulting in new increased requirements on the transportation of products. As such, organizations are needing to reevaluate their supply chain strategies and transportation costs, and demand for smaller fulfillment centers closer to the urban population is exploding. This challenge around the “last-mile delivery” is altering the distribution and logistics sectors. IMS Worldwide defines the last mile as the “last point of distribution or sortation to the final …
CARTERSVILLE, GA. — Chick-fil-A will build its first company-owned distribution center in Cartersville, a project that will create about 300 jobs. The distribution center will open this summer as a pilot facility, serving as a learning lab while the full-scale center is being built. When the full-scale center is delivered at its expected date of summer 2020, it will serve 300 Chick-fil-A restaurants. The property will also house 300 employees with jobs including drivers, warehouse team members, leadership team members and administrative staff. Multiple media outlets report that Chick-fil-A D2 Services LLC paid $3.7 million for a 50-acre site near Cartersville Business Park, which is located about 45 miles north of downtown Atlanta.
DALLAS — A new report from CBRE and Real Capital Analytics has found that in 2018, sources of foreign capital invested $849.1 million in industrial real estate throughout the Dallas-Fort Worth (DFW) market. The metroplex’s volume of industrial investment by foreign capital was second only to Los Angeles. Among foreign countries, Chinese capital sources led the way with 41 percent of the DFW industrial investment, followed by those of Singapore and Canada at 34 and 22 percent, respectively. All told, foreign investors made approximately $14.4 billion of industrial acquisitions in 2018, accounting for about 21 percent of the total investment pie for the asset class across the United States. That figure represents an impressive 152 percent year-over-year increase.
CARLSDADT, N.J. — Michael Halebian & Co., a provider and distributor of specialty flooring products, has signed a 35,000-square-foot industrial lease at 700 Gotham Parkway in Carlsdadt, a city located directly across from Manhattan in New Jersey. The property’s location offers proximity to major thoroughfares like the New Jersey Turnpike and Garden State Parkway, as well as Teterboro Airport. The owner of the 80,000-square-foot facility, Key Properties, purchased 700 Gotham Parkway as an abandoned former paint manufacturing facility in 1997 and repositioned the building from single- to multi-tenant use.
CITY OF INDUSTRY, ORANGE, CARLSBAD AND SAN MARCOS, CALIF. — Rexford Industrial has purchased four industrial properties located in Southern California for a total of $84.5 million. The acquisitions were funded using cash on hand. Totaling 456,000 square feet, the portfolio includes: A 256,993-square-foot facility, located at 13890 East Nelson Ave. in City of Industry, was purchased for $41.8 million, or $163 per square foot. The fully occupied building features 24-foot clear heights, 36 dock positions and active rail service. A 92,647-square-foot property, located at 445 W. Freedom Ave. in Orange, was acquired for $18 million, or $94 per square foot. The three-tenant property is fully leased and offers 24-foot clear heights and 13 dock positions. A 106,311-square-foot facility, located at 2270 Camino Vida Roble in Carlsbad, was purchased for $16.8 million, or $158 per square foot. At the time of sale, the property was 70 percent occupied. In a separate, off-market transaction, Rexford Industrial purchased 980 Rancheros Drive in San Marcos for $7.9 million, or $173 per square foot. The single-tenant industrial building contains 45,678 square feet of industrial space with 24-foot clearance, three dock positions, heavy power and a private yard. At the time of sale, the property …
POWAY, CALIF. — Cushman & Wakefield has arranged the sale of an industrial building, located at 13450 Stowe Drive in Poway. SENTRE sold the facility to SOCAL Stowe LLC for $15.9 million. SENTRE is an acronym for Stewards and Entrepreneurs of Real Estate. Situated on 4.3 acres and originally constructed in the early 1990s, the single-story building with mezzanine space features dock- and grade-level loading, open outdoor amenities, efficient office layouts, new LED lighting and a secured yard. Aldila Composite Materials, a subsidiary of Mitsubishi and a designer and manufacturer of composite materials, occupies the 73,000-square-foot facility. Bryce Aberg, Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey, Brooks Campbell, Zach Harman and Devin Muna of Cushman & Wakefield’s San Diego and Orange County, Calif., offices represented the seller, while Jim Snyder and Patrick Lacey of Lee & Associates represented the buyer in the deal.
RICHARDSON, TEXAS — Dallas-based Texas Instruments (NASDAQ: TXN) will open a $3.1 billion manufacturing facility in Richardson, a northeastern suburb of Dallas, in a move that is expected to create approximately 500 new jobs. Texas Gov. Greg Abbott made the announcement on Thursday, April 18. The facility, which local news sources report will span approximately 870,000 square feet, will be dedicated to the manufacturing of semiconductors and chips used in a variety of devices, including smartphones and other industrial machinery. A timeline for construction was not released. Texas Instruments (TI) had been engaged in site selection for a new plant for several months and even considered locations outside Texas, according to The Dallas Morning News. The paper reports that TI owns the land on which the new factory will be built, and that the Plano Independent School District, which serves the area in which the new plant will be located, has agreed to reduce TI’s property taxes for 10 years, which will save the company approximately $100 million. Company officials also cited Richardson’s strong workforce and proximity to key pieces of infrastructure as reasons to expand in the area. “We’ve selected Richardson because of its access to talent, an existing …
Even before the city’s population growth began exploding and its reputation as a tech hub became entrenched, Austin was always a true last-mile market for industrial users. Now that e-commerce has morphed into a worldwide phenomenon with real staying power, Austin looks like one of the next ideal locations for institutional industrial developers to make their marks with larger projects. However, the market does present a handful of challenges, including an intricate entitlement process, expensive land and a slightly higher cost of construction as compared to Texas’ other major markets. These barriers to entry have helped characterize the Austin industrial market we see today, with local developers leading the way. The Austin Market Today From both a developer’s and a broker’s perspective, the biggest advantage of being in a high-barrier-to-entry market, aside from less competition, is that the likelihood of becoming overbuilt is minimized. We saw this in 2008 and 2009, when the recession forced industrial users to cut operating costs and landlords to lower rents. Like the rest of the country, Austin took some hits during the Great Recession and saw a handful of properties foreclosed upon. But due to minimal new development, the market was able to maintain …
HOUSTON — GreenSpace Self-Storage LLC has acquired land at 1690 North Loop West in Houston for the development of a 1,050-unit self-storage facility. The Class A, three-story property will feature 24-hour surveillance, electronic access control, climate-controlled units and a customer service office. The facility, which will offer 75,000 square feet of net rentable space, will be situated on two of the parcel’s six acres; plans for the additional acreage have not yet been finalized. Chris Bergmann Jr. of JLL represented GreenSpace in its acquisition of the land. Avison Young represented the seller.