JLL closes $63.75M sale of Charlotte-area distribution center
The 1.36M-square-foot industrial complex is in Charlotte’s top industrial submarket
CHARLOTTE, N.C., January 27, 2020 – JLL Capital Markets announced today that it has closed the $63.75 million sale of Premier Distribution Center, a 1.36-million-square-foot, multi-tenant industrial complex in the heart of Charlotte’s Southwest Industrial submarket.
JLL marketed the property on behalf of the seller, a partnership between New York Life Insurance Company and LRC Properties. Somerset Properties purchased the asset in partnership with Waterfall Asset Management.
Situated on 95 acres at 1900 Continental Boulevard, Premier Distribution Center is in the high barriers-to-entry Southwest Industrial submarket, which is one of the Southeast’s most institutionally owned industrial submarkets. The facility is positioned at the interchange of Interstate 77 and Interstate 485 with easy access to Interstate 85, the industrial backbone of the Southeastern U.S. Additionally, the property has excellent regional connectivity due to its proximity to Charlotte Douglas International Airport and Uptown Charlotte along with access to Charlotte’s densely populated suburbs.
Originally constructed as the North American headquarters for Continental Tire, Premier Distribution Center was rebranded and transformed into a modern distribution complex that features 24-foot clear heights, ESFR sprinkler systems, motion-sensor LED lighting, 110 loading positions, abundant parking and trailer storage on-site. The sale includes a 25.93-acres development parcel adjacent to the existing loading area that can accommodate a 333,000-square-foot cross-dock facility.
The JLL Capital Markets team representing the seller was led by Chris Norvell, Patrick Nally, Pete Pittroff and David Andrews.
“The Premiere Distribution Center is an ideal fit for the firm’s value-add, reposition strategy,” said Mark White, managing principal at Somerset Properties. “The property is highly functional and occupies a strategic location at the intersection of two major interstate highways in a high-growth, target market for us. Prior ownership made some important improvements to the asset to begin transitioning it from a single-tenant manufacturing facility to a multi-tenant distribution warehouse. We intend to continue to improve the property in order to accommodate a variety of uses, including logistics, warehousing, and light manufacturing. Among the physical improvements we have planned is the addition of new dock-high loading doors to enhance shipping and receiving flexibility. We are excited about this acquisition and the opportunity to expand our existing footprint in Charlotte.”
According to a recent JLL Research Report on the Charlotte market, in Q3 2019, after a slower first half of 2019, leasing activity picked up as Charlotte nearly doubled Q1 and Q2 absorption. More than 2.3 million square feet of industrial space has delivered thus far in 2019, with 2.2 million square feet still under construction. With almost 1.2 million square feet on pace to complete within the calendar year, Charlotte’s market looks to new tenants and expansions to occupy this new space.
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 advisory, debt placement, equity placement or recapitalizations. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.
Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About LRC Properties
LRC is a commercial real estate firm that manages approximately seven million square feet of office and industrial space valued at nearly half billion dollars in the Southeast. Headquartered in the New York City metro area, with offices in Charlotte and Durham, North Carolina, LRC concentrates on acquiring core plus and value add properties in high-growth East Coast markets with a focus on the Southeast. LRC creates above-market returns for its investment partners by enhancing the value of the properties it purchases through utilizing a “hands-on” management approach to reposition, improve operational efficiency, restructure and redevelop its assets.
LRC is built on Integrity, Cultivating Relationships and Communities, Empowering Human Capital
………Vision and Imagination. For more information on LRC Properties, visit lrcprop.com.
About Somerset Properties
Somerset Properties is a full-service real estate company that operates in the eastern United States. Its principals have been successfully developing, operating and investing in commercial real estate projects for over thirty years. Since 1996, Somerset Properties has acquired and repositioned over 100 properties and 10 million square feet of commercial property. Visit somprop.com for more information.
About Waterfall Asset Management, LLC
Based in New York, Waterfall Asset Management is an SEC-registered institutional asset manager focused on structured credit (asset-backed securities and loans) and private equity investments. Waterfall had approximately $8.7 billion in assets under management as of November 1, 2019. waterfallam.com