Distribution portfolio in top logistics markets sold for $166.7M
JLL closed the sale of the 3-building portfolio near Atlanta and Memphis
ATLANTA, Feb. 8, 2021 – JLL announced today that it has closed the $166.7 million sale of a core industrial portfolio comprising three net-leased, Class A, newly constructed bulk distribution assets totaling nearly 2.2 million square feet in two top logistics markets, Atlanta, Georgia, and Memphis, Tennessee.
JLL Capital Markets worked on behalf of the seller, Core5 Industrial Partners. Preylock Holdings purchased the assets. Additionally, JLL Agency Leasing assisted Core5 Industrial Partners lease the Atlanta component of the portfolio to a credit-worthy e-commerce retailer.
The portfolio consists of the 1-million-square foot Crossroads Business Center at 5705 Campbellton Fairburn Rd. in Union City, Georgia, and two buildings that are part of the DeSoto 55 Logistics Center, the 328,355-square-foot DeSoto A2 and the 860,915-square-foot Desoto D at 1453 and 1615 Commerce Pkwy. in Horn Lake, Mississippi. These infill locations are near highly trafficked trucking and logistics routes near Hartsfield-Jackson Atlanta International Airport, the busiest airport in the world, and Memphis International Airport, which houses the FedEx Express World Hub. Additionally, both properties are proximate to unparalleled regional access and intermodal facilities.
Completed in 2020 to core, Class A state-of-the-art construction specifications, the buildings have 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.
JLL Research found that net lease assets captured nearly a fifth of all commercial real estate investment activity during the second and third quarters of 2020, doubling the average over the last cycle. Throughout the pandemic, some investors turned to the relative certainty of long-term, net-lease properties with a strong credit tenant, like this portfolio. Additionally, persistent demand for e-commerce and logistics assets in the wake of COVID-19 drove the strong performance of the net-lease industrial sector last year.
The JLL Capital Markets team representing the seller was led by Dennis Mitchell, Matt Wirth, Britton Burdette, Jim Freeman and Mitchell Townsend.
“The transaction was creative and designed to accomplish several goals for Core5, including strong pricing at time of the initial pre-election funding and a 2021 final funding and tax event,” Mitchell says. “Buyers’ willingness to be aggressive in both price and transaction structure demonstrates the continued demand for core industrial product. This complicated transaction progressed from term sheet to closed in under 45 days, which is a credit to the quality of Core5 Industrial Partners, Preylock and all involved.”
The JLL Atlanta Agency Leasing team of Reed Davis and Bob Currie represented Crossroads Business Center, and Jack Wohrman with JLL’s Memphis office was the lead market expert for the DeSoto assets.
“Memphis Industrial market fundamentals continue to get better and better,” Wohrman added. “Vacancy rates are at historic lows, absorption continues to outpace deliveries, rents are increasing and cap rates continue to compress. We achieved strong pricing for the Memphis market and entire Mid-South on behalf of Core5 with this transaction. The collective efforts between our Capital Markets and Industrial Brokerage teams worked incredibly well on this complicated project.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Core5 Industrial Partners
Core5 Industrial Partners is an industrial real estate property company with expertise in development of Class-A properties featuring the latest innovations throughout the United States. Headquartered in Atlanta, Georgia, Core5 has development activity in Atlanta, Chicago, Cincinnati/Northern Kentucky, Columbus, Dallas, Houston, Indianapolis, Los Angeles/Inland Empire, Louisville, Memphis, Nashville, Pennsylvania and South New Jersey with expansion plans to additional key logistic hubs in the U.S. Founded in 2015, the company has developed or begun construction on 26 million square feet since inception.
Immediate access to capital, coupled with the ability to financially support deals on their balance sheet without utilizing third party resources on most transactions, Core5 executes quickly without layers of bureaucratic, time-consuming processes. The company is privately held by 170-year-old Japanese-based Kajima Corp – one of the world’s largest A credit-rated construction companies with whom C5 leadership has sustained a 30+ year working relationship.
Named for its five core principles, the company values are centered around a highly flexible entrepreneurial spirit promising follow through on commitments with an emphasis on relationships, excellence in quality, attention to detail and quick decision making. For more information on Core5 Industrial Partners, visit c5ip.com.
About Preylock Holdings
Preylock Holdings is a private equity real estate acquisition and management company with $3 billion in assets under management. Founded in Los Angeles in 2016, Preylock serves investors that range from institutional capital and publicly traded corporations to high-net-worth family offices. Preylock’s portfolio includes over 3.5 million square feet of office investments, under both value-add and core-plus strategies, and also includes over 4.2 million square feet of best in class industrial investments.