ATLANTA — Hartz Mountain Industries, a real estate owner and manager based in Secaucus, N.J., has acquired a 2.5 million-square-foot portfolio consisting of 35 industrial buildings in north Atlanta. Hartz purchased the portfolio from Clarion Partners, a New York-based real estate investment management firm, for $129 million.
Hartz has also recently purchased a pair of industrial assets in metro Charlotte and metro Baltimore. The company is targeting East Coast-based assets due to population growth and increased port traffic in the region’s major metros.
“The expansion of the Panama Canal is creating additional transportation options to and from the Orient and the West Coast, making East Coast locations in large and growing areas more relevant,” says Emanuel Stern, CEO and president of Hartz Mountain Industries. “Population growth in cities like Charlotte and Atlanta make Baltimore and other markets in the Southeast more appealing for us and other companies to expand their businesses.”
The north Atlanta portfolio consists of three developments: Peachtree Corners I on Jimmy Carter Boulevard, Adriatic Court and Atlantic Boulevard in Norcross; Peachtree Corners II on Kingston Court; and Kennestone Corners on Kennestone Circle in Marietta. The properties have a combined occupancy of more than 93 percent. Hartz found these properties appealing for their proximity to major interstates I-75, I-575 and I-285, the airport and two railroad systems.
“Similar to our holdings in North Jersey and Baltimore, Atlanta’s industrial district is ideally located minutes from major road arteries and within a vibrant residential market,” says Stern. “We also found it appealing that there is not a lot of space for new development, which limits competition and increases the value for existing buildings.”
Jeffrey Dunne of CBRE’s New York office represented Hartz in the transaction, and Brian Budnick, Chris Riley and Frank Fallon of CBRE’s National Partners represented Clarion Partners.
Additionally, Jim Gunning and Val Achtemeier of CBRE’s capital markets debt and structured finance team arranged acquisition financing through Prudential Mortgage on behalf of Hartz.
The portfolio is Hartz’s first acquisition in the Atlanta market. “This offering provided the opportunity to enter the Atlanta market with a highly sought after portfolio of Class B industrial product providing critical mass, scale and operating efficiencies in true infill submarkets,” says Budnick. “The portfolio has been very well maintained and operated by Clarion Partners throughout their ownership as evidenced by its 91 percent average occupancy throughout the toughest years of the economic recession.”
Hartz Mountain Industries Inc. owns and manages approximately 200 properties totaling more than 35 million square feet in the Northern New Jersey/New York area, as well as Chicago, Seattle and Austin.
Clarion Partners has offices in major markets throughout the United States; São Paulo, Brazil; and London; as well as a presence in Mexico. With more than $32 billion in total assets under management, Clarion Partners provides management services for 200 domestic and international institutional investors.
— John Nelson