North River Commerce Center_Property for Sale

4513 North Access Road, Chattanooga, TN, 37415, US

North River Commerce Center

Asset Description

Jones Lang LaSalle America, Inc. (“JLL”) has been exclusively retained by ownership as the sales representative for North River Commerce Center, “the Property”– a 192,773 square foot distribution facility in the burgeoning Chattanooga market, featuring pre-cast concrete panel construction, 32’ - 36’ clear heights, 260’ building depth and 45-mil TPO overlay with 18+ years of warranty remaining. The Property is 100% leased to The Home Depot ($157B 2023 Rev, A S&P), DB Schenker ($45B 2023 Rev, AA-/A-1+ S&P), Prelco, and TurbinePROs with 6.2 years of WALT.

Located just 1.4 miles from Hwy 153 and 8.0 miles from I-75, the Property is well positioned within the rapidly growing Chattanooga MSA. Chattanooga, otherwise known as the “Gateway to the Southeast”, is strategically positioned at the junction of three major interstates, including I-24, I-75, and I-59, providing superior access to Atlanta, Nashville, Birmingham, Knoxville, and the greater Midwest. 15.5 million consumers can be reached within a 3-hour drive, highlighting the city’s superior connectivity. Chattanooga industrial market fundamentals have stayed strong with historical vacancy remaining under 5% since 2017 and less than 300 KSF of product delivering per year on average over the past seven years, limiting the amount of inventory added to the market. Class A Chattanooga encompasses only 0.85% of the market’s inventory and has 17.9% higher rents.

Chattanooga has seen strong population growth of 11.7% since 2010, emphasizing the robust economic development provided by the automotive and tech industries, among many others. The city is home to Volkswagen’s only U.S. manufacturing plant, with total investments of $3.5 billion and employment of over 5,000 residents. Also known as “Gig City”, Chattanooga was the first U.S. city to provide high speed internet to all residents, which has attracted a flock of tech companies to the city. With 1 in 5 jobs being manufacturing related, the city has a skilled industrial labor force supplied by highly rated nearby educational institutions, including the University of Tennessee Chattanooga and Chattanooga State Community College. Rated as a 5-star logistics hub due to its connectivity via air, water, and rail, Chattanooga is surrounded by strong demographic growth in nearby MSAs which only supports the future growth of the centrally located city.

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Attributes

Building area gross

17,909 m²

Occupancy

100%

Year built

2023

Number of units

WAULT

6.2 years

Media

Investment Highlights

Stable Long-Term Cashflow

100% leased to The Home Depot ($157B 2023 Rev, A S&P), DB Schenker ($45B 2023 Rev, AA-/A-1+ S&P), Prelco, and TurbinePROs with 6.2 years of WALT
NNN lease structure with limited landlord responsibilities

Institutional quality construction

32’ - 36’ clear heights
Rear-load configuration
260’ building depth
Pre-cast concrete panel construction
45-mil TPO roof with 18+ years of warranty remaining
34 dock-high doors & 3 drive-in doors
135’ truck court
144 auto parking spaces
41 trailer parking spaces
ESFR fire protection

Well Located with Strong Surrounding Demographics

Proximity to major thoroughfares and large infrastructure
1.4 miles from Hwy 153
7.9 miles from Chattanooga Metropolitan Airport
8.0 miles from I-75
9.1 miles from Volkswagen Plant
9.4 miles from I-24
Surrounded by rapidly growing MSAs in all directions
102 miles from Knoxville
114 miles from Huntsville
117 miles from Atlanta
143 miles from Nashville
15.5 M people reachable with in a 3-hour drive
11.7% population growth since 2010 within a 30-minute drive radius
24.9% of population within a 15-minute drive possess a bachelor’s degree or higher

Historically Tight Industrial Market with Limited New Supply

Chattanooga market includes 6 counties from Northern Georgia to Southeastern Tennessee, comprising over 100 MSF of industrial inventory
Bradley, Hamilton, & McMinn counties in TN
Catoosa, Walker, & Whitfield counties in GA
Vacancy has remained sub 5% since 2017 with a 5-year average vacancy rate of 2.7%
Submarket 5-year average vacancy rate of 1.9%
On average, 330,331 SF of product has been delivered each year since 2020, representing only 0.58% of current market inventory on an annual basis
High barriers to entry including rocky soil and challenging topography limit industrial development in all directions

Chattanooga – The Gateway to the Southeast

Crossroads of three major thoroughfares, including I-24, I-75, & I-59
Rated as a 5-star logistics hub by Expansion Management & Transportation magazine
Home to Volkswagen’s only U.S. Assembly Plant – 1,400 acres w/ total investment over $3.5 billion
Employs 5,000+ people, producing 234,000 vehicles per year
Air, Water, & Rail
Chattanooga Metropolitan Airport served by FedEx for air cargo services
Administered by the Tennessee Valley Authority (TVA), the Tennessee River carries barge lines along 16,000 miles of navigable waterways
Major freight hub with the presence of Norfolk Southern and CSX Class I freight rail service
Appalachian Regional Port in Murray County opened in 2018 and has seen explosive growth
Current throughput of 75,000 containers is ahead of their 2022 projection of 20,000 per year
Volkswagen is one the ARP’s largest customers
Chattanooga, known as “Gig City”, was the first U.S. city to provide gigabit-speed internet to residential and commercial sectors and is now emerging as a quantum technology hub
Spearheaded by initiatives like “Gig City Goes Quantum”, Chattanooga is leveraging the city’s exceptional fiber optic infrastructure to develop a thriving quantum ecosystem
Affordable living – Chattanooga’s cost of living is 9% below the national average
Named “Best Place to Live in Tennessee” by U.S. News & World Report in 2024
Major industries include automotive, advanced manufacturing, food and beverage, and healthcare