$113M sale of two Class A distribution facilities in Savannah closes

ATLANTA, October 20, 2022 – JLL Capital Markets announced today that it has closed the $113 million sale of Coastal Commerce Center, two Class A distribution facilities totaling 826,250 square feet in Savannah, Georgia.

JLL represented the seller, a joint venture between AEW Capital Management and Strategic Real Estate Partners, in the sale to Stream Realty Partners LP.

Coastal Commerce Center comprises two fully leased distribution facilities offering 130’-185’ truck courts, 204 trailer parking spaces and 398 auto parking spots. Building A is a 462,000-square-foot cross-dock building with 36’ clear heights leased by Performance Team, LLC. Building B is a 364,250-square-foot rear-load building with 32’ clear heights leased by IDC Logistics, Inc.

The property boasts approximately 3,000 linear feet of prime frontage on Interstate 16 with direct access to I-95, I-516 and Pooler Parkway, the buildings provide direct connectivity to Savannah’s Garden City Terminal via a signalized intersection at Dean Forest Road. Coastal Commerce Center is located at 1514 Old Dean Forest Road putting the buildings six miles from Garden City Terminal and seven miles from Savannah Hilton Head International Airport.

Coastal Commerce Center benefits from its position within the Garden City Terminal, the single largest and fastest-growing container terminal in America, growing cargo volumes by 20% year-over-year. With $3.2 billion to be invested over the next decade, the Port of Savannah’s rapid expansion will continue to drive explosive industrial fundamentals. Savannah ranks as one of the best industrial markets in the country with the lowest vacancy rate in the nation at 0.5% and one of the highest amounts of tracked tenant demand at 30 million square feet. This has led to explosive rental rate growth in the market (25.3% YOY) which is projected to continue. The market has a robust pipeline to keep up with tenant demand, however, 47% of new construction is already pre-leased or in negotiations.

The JLL Capital Markets Industrial team representing the seller was led by Senior Managing Directors Britton Burdette, Dennis Mitchell and Matt Wirth, Director Mitchell Townsend and Associate Jim Freeman.

“Savanah is a rapidly growing industrial market that is posting some of the best numbers in the country currently,” said Burdette. “This market strength along with the offering's best-of-market location helped to drive very strong interest from buyers. The outlook for the Savannah industrial market is excellently and should drive growth in value for quality assets such as this going forward."

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 and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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