The surge in demand for Birmingham’s industrial real estate over the last few years has resulted in the highest occupancy rates in over 20 years. Alabama’s level of business friendliness has created a strong economy and high level of job growth since the end of the Great Recession. Manufacturing is a key driver of job growth. Overall vacancy rates in Birmingham’s multi-tenant industrial market have fallen to around 7 percent, which is an all-time low. Average rental rates have crept up to approximately $4.25 per square foot, which is historically high for Birmingham but still significantly lower than rents in larger markets around the Southeast. In spite of the robust activity, there are no active plans for any sort of speculative multi-tenant developments in the market. The last project was the 90,000-square-foot Oxmoor Logistics Center located in the Oxmoor Valley submarket, which was completed in the fourth quarter of 2018. It is currently 100 percent occupied. However, there are over 2 million square feet of individual projects that will be completed before the end of 2019. One is a $1.3 billion expansion at the Mercedes-Benz Tuscaloosa plant, which includes a new body shop, enhancements to the SUV assembly shop and …
LOUISVILLE, KY. — Kentuckiana Curb Co. Inc., which makes HVAC products and does business as KCC Manufacturing, plans to develop a 300,000-square-foot, $50 million facility in Louisville that will house corporate offices and manufacturing space. KCC acquired 20 undeveloped acres at 2706 Blankenbaker Road for the project, which is 14 miles east of downtown Louisville. The Kentucky Economic Development Finance Authority (KEDFA) will provide KCC with $6.5 million of tax incentives if the company adds 400 jobs over the next 10 years and pays an average hourly wage of $29 across those jobs, including benefits. Production at the new facility will include the design and manufacturing of HVAC equipment and sheet metal products. KCC currently houses 512 employees at its existing Louisville facility, which is located at 2716 Grassland Drive, two miles from the planned property. A timeline for construction was not disclosed.
KENNESAW, GA. — JLL has negotiated the sale of Cobb Place, a 335,190-square-foot retail center in Kennesaw. The property was 95 percent leased at the time of sale to tenants including Bassett Furniture, American Signature Furniture, Ashley Furniture, Bed Bath & Beyond, Cost Plus World Market, Hobbytown USA, DSW, Jersey Mike’s and Play It Again Sports. Cobb Place is situated on 31 acres at 840 Ernest W. Barrett Parkway, 24 miles northwest of downtown Atlanta. Jim Hamilton and Brad Buchanan of JLL represented the seller, a partnership between DRA Advisors LLC and RCG Ventures LLC, in the transaction. A fund sponsored by Wicker Park Capital Management purchased the asset. Additionally, Chip Sykes of JLL arranged acquisition financing on behalf of the buyer. Goldman Sachs provided the seven-year, fixed-rate loan.
PEACHTREE CITY, GA. — Plymouth Industrial REIT has acquired a 295,693-square-foot industrial building in Peachtree City for $19.4 million. The property was fully leased at the time of sale to 15 tenants including Metal Tech-USA, a specialty fabricator and distributor of architectural systems and high-end metals; Gerresheimer, a specialty glass and products manufacturer to the pharmaceutical and healthcare industries; and M-OK Freight Corp., a freight services company specializing in warehousing and distribution services. The asset is located at 611 Ga. Highway 74 S., in the Fayette/Coweta Industrial submarket, 26 miles south of Hartsfield-Jackson Atlanta International Airport. The seller was not disclosed.
RALEIGH, N.C. — Cushman & Wakefield has arranged the $17.9 million sale of Carolina Corporate Centre, a 91,709-square-foot office building in Raleigh. The property was 98 percent leased at the time of sale to tenants including law firms, insurance providers, mortgage lenders and tech companies. The seller, The Simpson Organization, acquired the asset in 2016 when it was 80 percent leased and during its ownership upgraded the onsite amenities and common areas. The property is located at 5400 Glenwood Ave., seven miles northwest of downtown Raleigh. David Finger, Sara Owen and Samir Idris of Cushman & Wakefield represented Simpson in the transaction. Saltmeadow LLC and The Runnymede Corp. acquired the property.
WASHINGTON, D.C. — The U.S. economy added 128,000 jobs in October, according to the Bureau of Labor Statistics (BLS), beating expectations by a wide margin. Economists surveyed by The Wall Street Journal had forecast an increase of 75,000 jobs. The October jobs report was widely considered to be a surprise to the upside considering that it reflected the 40-day United Auto Workers strike against General Motors that began Sept. 16 and ended Oct. 26. Meanwhile, the unemployment rate nationwide rose 10 basis points to 3.6 percent in October. The employment gains were broad-based. Food services and drinking places added 48,000 jobs in October. The professional and business services sector gained 22,000 jobs and healthcare employment added 15,000 jobs. Over the last 12 months, the healthcare sector has added 402,000 jobs. Conversely, manufacturing employment decreased by 36,000 in October. Within manufacturing, employment in motor vehicles and parts declined by 42,000, reflecting strike activity. The change in total nonfarm payroll employment for August was revised upward by 51,000 from 168,000 to 219,000, and the change for September was revised upward by 44,000 from 136,000 to 180,000. With these revisions by the BLS, employment gains in August and September combined were 95,000 more …
LOUISVILLE, KY. — Churchill Downs Inc. will invest $300 million to add 5,500 reserved seats, a 156-room hotel and 900 historical racing machines at Churchill Downs, home of the annual Kentucky Derby horse race in Louisville. A historical racing machine is an electronic gambling system that allows players to bet on horse races or dog races that have already been run. The seven-story hotel will include 900 historical racing machines, a 27,000-square-foot ballroom, dining room overlooking the track, 92 trackside suites, four trackside presidential suites and multiple dining options. The project is expected to create 600 construction jobs and 300 permanent jobs upon completion. Churchill Downs Inc. expects the expansion to be complete in November 2021.
COLUMBIA, S.C. — A public-private partnership between Greystar and the University of South Carolina (USC) is set to break ground on Campus Village. The multiphase redevelopment will be located on the current site of Cliff Apartments at the northeast corner of Sumter and Whaley streets in Columbia. The partnership will begin construction on the $210 million first phase of development in February 2020 with completion scheduled for fall 2022. When complete, the living-learning community will feature 1,800 beds, an academic support space, dining hall, campus safety office, sundry store and coffee shop. Under the development agreement, Campus Village will be owned by the university and maintained by Greystar under a management contract. USC will manage and provide housing operations and student support at Campus Village.
LAKE WORTH AND PALM SPRINGS, FLA. — FCP has acquired three multifamily properties in South Florida for $85.5 million. The portfolio includes Costa del Lago, a 218-unit community in Lake Worth. The asset offers one- through three-bedroom floor plans. Communal amenities include a dog park, swimming pool, picnic area and a private lake. The second asset in the portfolio is Coronado Springs, a 314-unit complex in Palm Springs, offering one- and two-bedroom floor plans. Community amenities include a swimming pool, spa, fitness center, picnic area and a pet play area. The final property, Sedona Village, is a 151-unit community also located in Palm Springs. The community features one- and two-bedroom floor plans along with amenities such as a swimming pool, clubhouse, pet play area, fitness center, business center and a playground. Pinnacle will manage all three properties. Hampton Beebe, Avery Klann, Tal Frydman, Jonathan Senn and Tyler Minix of Newmark Knight Frank (NKF) represented FCP in the transaction. The seller was not disclosed. Fernando Riboli of NKF originated Fannie Mae acquisition financing for two of three properties on behalf of the buyer.
WINCHESTER, VA. — Mumford Co. has arranged the sale of an 85-room Fairfield Inn & Suites by Marriott Winchester in Winchester. The hotel is located at 250 Front Royal Pike, three miles south of downtown Winchester. Amenities include a business center, conference center, fitness center and an indoor swimming pool. Ed James and Steve Kirby of Mumford Co. represented the seller, Front Royal Pike LLC, in the transaction. Aspire Hospitality acquired the property for an undisclosed price.