SHELBYVILLE, KY. — Colliers has brokered the sale of I-64 Commerce Center, a 1 million-square-foot industrial building located in Shelbyville, approximately 30 miles outside Louisville. W. P. Carey Inc. acquired the facility from Flint Development for an undisclosed price. Canadian Solar, the world’s largest solar and renewable energy company, fully occupies the property, which is situated at 139 Logistics Drive. Delivered in 2023, the building facility features 40-foot clear heights, an ESFR sprinkler system, 348 car parking spaces, 230 trailer parking spaces and full circulation. Canadian Solar plans to invest up to $500 million into the property to develop its principal United States battery assembly facility. Alex Cantu, Alex Davenport, Jeff Devine and Steven Disse of Colliers represented the seller in the transaction.
Amidst economic uncertainty, Louisville stands out for its resilience, establishing itself as a stalwart in today’s market. According to Apartments.com, Louisville ranked No. 1 in the nation for rent growth in the second quarter of 2024. Factors such as Louisville’s non-cyclical job growth, expanding industries including EV production and the burgeoning River Ridge project in Southern Indiana all contribute to its growth. When we inspect the data, we see a basic yet fundamental market factor at play: supply and demand. Louisville’s supply is low relative to the growth in renters, resulting in upward pressure on rents despite a nationwide market that is largely declining. Supply dynamics The bulk of Louisville’s development pipeline is concentrated in Southern Indiana, with 1,039 units under construction in the Jeffersonville submarket. The Southern Indiana region has experienced solid growth with over 10,500 incoming jobs due to the economic activity from River Ridge. River Ridge Commerce Center reported an economic impact of $2.93 billion for calendar year 2023, up over $2.7 billion compared with 2022, according to Inside INdiana Business. Notable development projects in Southern Indiana include: • The Flats on 10th, 3300 Schosser Farm Way (300-units by Schuler Bauer Real Estate) • The Warren, 4501 …
LOUISVILLE, KY. — Dermody Properties plans to develop LogistiCenter at Airport West, a 342,720-square-foot industrial facility situated on 21 acres in Louisville. Kevin Grove and Alex Grove of CBRE represented the developer in the land acquisition. The site is located west of Louisville Muhammad Ali International Airport in the city’s Southside/Airport submarket. The project will feature build-to-suit office space, 36-foot clear heights, 40 dock doors, two drive-in doors, 190 parking stalls, 70 trailer spaces, ESFR fire protection and LED lighting. The construction timeline for the project was not disclosed.
The Louisville office market is at an interesting crossroads, to say the least. Historically, the sector has always skewed toward the suburban submarkets as east Jefferson County has been the go-to area for companies looking for office space. Over the past few years, the shift to the suburbs has become more pronounced than ever as Louisville’s office market experiences a dramatic contrast between the current state of the overall office market in the suburbs versus the central business district (CBD). In the suburban markets, the premier office buildings are experiencing low vacancy rates and record-setting growth in rental rates. On the opposite side, the CBD continues to struggle with increases in vacancy rates, which is expected to increase in the coming months. This trend reflects overall national office trends as companies focus on new, highly amenitized spaces to offer their employees. Suburban Louisville The suburban office market in Louisville has demonstrated reliable stability over the past four years. As of second-quarter 2024, the vacancy rate for Class A spaces stood at 12.7 percent, while Class B spaces recorded a higher rate of 17.2 percent. The suburban market has seen limited new construction deliveries thus far in 2024. The most notable …
LOUISVILLE, KY. — Marcus & Millichap has brokered the $6.9 million sale of Germantown Village Apartments, a multifamily community in Louisville. Located on 2.7 acres at 630 E. Kentucky St., Germantown Village spans 66,300 rentable square feet across 100 one-bedroom units. Aaron Kuroiwa and Sam Kramer of Marcus & Millichap represented the seller, Strategic Advisors LLC, in the transaction and procured the buyer, BlackOak Equity Management. Grant Fitzgerald assisted in closing the sale as Marcus & Millichap’s broker of record in Kentucky. The seller recently completed comprehensive upgrades to the community, which was originally built in 1960.
ELIZABETHTOWN, KY. — The Kirkland Co. has arranged the sale of The Reserve at Cool Springs, a 216-unit apartment community located in Elizabethtown, roughly 45 miles south of Louisville. Amenities at the property, which features a mix of two- and three-bedroom units, include a clubhouse, swimming pool, fitness center, grilling and outdoor entertainment areas and garage parking. The Reserve at Cool Springs was completed in 2023. Brandon Wilson, Brian Devlin and John Seale of Kirkland Co. brokered the transaction. An entity doing business as The Reserve at Cool Springs Property LLC acquired the community from an entity doing business as Reserve at Cool Springs LLC for an undisclosed price. Monthly rental rates at Reserve at Cool Springs range from $1,275 to $1,975, according to Apartments.com. The Elizabethtown-Fort Knox market in Kentucky has seen a 5.8 percent growth in multifamily rents over the past year, according to Kirkland Co.
Louisville’s economy remains resilient, and regional economic growth is creating a strong foundation for the retail market. Greater Louisville Inc. recently announced that 72 businesses are considering relocating or expanding to the region, with the potential of 8,200 new jobs and $3.8 billion in economic investment. Louisville is well-positioned for growth and the retail outlook remains strong with historically low vacancy rates. The market’s expanding consumer base and resilient economy have mostly overcome headwinds such as interest rate fluctuations, volatility in capital markets and signs of a slowing economy. This resilience has put Louisville in a strong position moving into the last quarter of 2024. At the end of the second quarter, Louisville’s vacancy rate stood at a strong 3.4 percent, outperforming the national benchmark of 4.1 percent, according to CoStar Group. The limited amount of new retail construction over the past 18 months has played a significant role in keeping the vacancy rate low. In fact, only roughly 322,000 square feet of retail space has been delivered over the past 12 months. Grocers are pushing leasing activity, making up 36 percent of the leasing volume that past 12 months. These retailers are executing most of the activity in spaces …
CORBIN, KY. — NAI Isaac has facilitated the sale-leaseback of a 127,373-square-foot industrial facility located at 1401 N. Kentucky Route 3041 in Corbin, a city in south Kentucky situated along I-75. Bruce Isaac of NAI Isaac represented the buyer, an entity doing business as MISCKY Industrial 24 LLC, in the transaction. Kevin Grove and Alex Grove of CBRE represented the seller/tenant, Minnesota-based cabinet manufacturer Northern Contours. Terms of the transaction were also not disclosed.
HENDERSON, KY. — Senior Living Investment Brokerage (SLIB) has arranged the sale of a four-property portfolio in Henderson, located in western Kentucky along the Ohio River and approximately 11 miles south of Evansville, Ind. Known as the Colonial Portfolio, the properties in the transaction included Colonial Assisted Living (69 units), Colonial Court Independent Living (22 units), Colonial Senior Living (51 assisted living units) and Colonial Cottages (16 independent living units). The seller was a local owner that developed and operated the assets since their inception. The buyer was a Kentucky-based owner and operator looking to grow its portfolio strategically in western Kentucky. Ryan Saul and Daniel Geraghty led the transaction for SLIB.
The Louisville industrial market has simmered at a slow and steady pace during 2024. Continued uncertainty with debt markets, inflation and the upcoming elections have placed developers on the sidelines, and occupiers in a holding pattern. Despite how the market feels today, Louisville remains poised for a comeback. A brief overview shows how and why the Louisville market is in the position it is today, and what to expect beyond 2024. The past five years reveal a compelling story, one that developers, occupiers and investors alike have come to understand as they seek to develop, lease or own real estate in the Derby City. Driving much of this development and occupier activity in Louisville is the presence of the UPS Worldport, two Ford manufacturing plants, Haier’s GE Appliance Park and other manufacturers that keep suppliers, third-party logistics firms and e-commerce companies jockeying for space. Louisville’s central location on the I-65 corridor and proximity to two-thirds of the U.S. population are also key reasons the market continues to grow as a hub for logistics, e-commerce and manufacturing. The market saw tremendous growth over the past five years, assisted by the space grab during COVID. Since 2019 bulk inventory experienced growth of …