Infill Atlanta industrial properties seeing unmatched demand
JLL Capital Markets closed the sale of two industrial properties in prime logistical locations near Atlanta’s I-285 perimeter
ATLANTA, Apr. 29, 2021 – JLL Capital Markets announced today that it has closed the sale of two fully leased, infill industrial facilities in highly sought-after logistical locations just outside of Atlanta’s I-285 perimeter, demonstrating continued demand for infill assets proximate to dense population centers.
JLL marketed the property at 1235 Commerce Rd. on behalf of the seller, BH Properties. Faropoint purchased the asset. 5351 Royal Woods Pkwy. was marketed on behalf of AIC Ventures, and Welcome Group LLC acquired the asset.
As older, obsolete industrial product inside of the I-285 perimeter is increasingly demolished or redeveloped into other uses, urban infill markets are experiencing a shortage of supply, resulting in demand levels never seen before. Industrial inventory within the I-285 perimeter has decreased by more than 30% over the past 20 years, leading to consistent flight to alternate infill areas such as Morrow and Tucker, where these properties are located.
1235 Commerce Rd. is an approximately 160,000 square-foot multi-use logistics facility fully leased to nine tenants. Completed in 1984, the asset is in a last-mile location in Morrow less than 10 miles south of Hartsfield-Jackson International Airport. Additionally, the property has immediate access to Interstates 85, 285, 75 and 675, allowing the tenants to reach nearly three million people within a 45-minute drive and 80 percent of the U.S population within a two-day drive.
5351 Royal Woods Pkwy. is an approximately 50,000-square-foot, single-tenant infill industrial warehouse triple net leased to Torsion Group Corp., a value-added distributor and manufacturer of commercial and residential garage doors parts and accessories. Completed in 1989, the Tucker facility is within five and a half miles of the I-285 perimeter and resides in the Stone Mountain Industrial submarket, one of Atlanta’s tightest and densely developed infill submarkets.
“The sale of these two assets represents the continued demand for infill assets in primary markets, and we expect investor demand to continue in this space,” Dennis Mitchell said.
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 $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About BH Properties
BH Properties is a proven leader in commercial real estate investing. The company owns, operates and re-positions “value-add” real estate across the country.
Faropoint is a fully integrated industrial investment firm founded in 2012 and has been actively engaged in the commercial real estate market of the Southeast, Mid-Atlantic and Midwest regions of the United States. The company is selectively locating value add properties, managing, stabilizing and enhancing performance in order to resell and actualize upside potential.
About AIC Ventures
AIC Ventures is a private real estate investment firm with a 31-year track record specializing in the acquisition, management and sale of industrial real estate properties via sale-leasebacks and existing net-lease investments throughout the United States. Entering its fourth decade, AIC Ventures remains steadfast in its commitment to developing long term relationships with its tenants, partners and investors.
About Welcome Group
Welcome Group is a conglomerate of companies that own and lease over five million square feet of single-tenant office, lab, industrial and manufacturing facilities in Texas. Welcome Group is currently in “acquisition mode” and looking for direct purchases and sale-leasebacks throughout the country. Welcome Group also offers build-to-suit and design-build services for new projects.