Core5 Sells New Distribution Center Portfolio in Metro Atlanta, Memphis for $166.7M

by John Nelson

MEMPHIS, TENN., AND ATLANTA — Developer Core5 Industrial Partners has sold a three-property distribution center portfolio in the Atlanta and Memphis metro areas for $166.7 million. The buyer is Preylock Holdings, a private equity investor and manager based in Los Angeles.

Atlanta-based Core5 delivered all three properties in 2020. Totaling approximately 2.2 million square feet, the bulk distribution centers feature ESFR sprinklers, ample auto parking and trailer storage, clear heights ranging from 36 to 40 feet and abundance of dock-high doors with view windows.

“The willingness of buyers to be aggressive in both price and transaction structure demonstrates the continued demand for core industrial product,” says Dennis Mitchell, a JLL Capital Markets team member who represented Core5 in the deal.

The Atlanta-area asset in the portfolio sale is Crossroads Business Center, a 1 million-square-foot distribution center located at 5705 Campbellton Fairburn Road in the south Atlanta suburb of Union City.

The metro Memphis assets are both situated within the DeSoto 55 Logistics Center, an industrial campus located in Horn Lake, Miss. The properties are the 328,355-square-foot DeSoto A2 and the 860,915-square-foot Desoto D, which are located at 1453 and 1615 Commerce Parkway, respectively.

The buildings are all situated near the busiest airport in the world (Hartsfield-Jackson Atlanta International Airport) and one of the busiest cargo airports in the world (Memphis International Airport, which features the FedEx Express World Hub).

Mitchell, Matt Wirth, Britton Burdette, Jim Freeman and Mitchell Townsend of JLL represented Core5 in the portfolio sale.

Reed Davis and Bob Currie of JLL’s Atlanta office were the leasing agents for Crossroads Business Center in Union City, and Jack Wohrman of JLL’s Memphis office was the leasing agent for the Horn Lake properties. No tenants were disclosed, but the Atlanta asset is leased to a major e-commerce retailer, according to JLL.

Founded in 2015, Core5 has developed or started construction of 26 million square feet of industrial space. The firm currently has projects underway in the Southeast, Midwest, Texas, Mid-Atlantic and Los Angeles.

Founded in 2016, Preylock Holdings’ portfolio includes over 3.5 million square feet of office space and more than 4.2 million square feet of Class A industrial investments. The firm currently has $3 billion of assets under management.

— John Nelson

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