4310 Distribution Drive_Property for Sale
4310 Distribution Drive_Property for Sale
4310 Distribution Dr, Chattanooga, TN, 37416-3653, US

4310 Distribution Drive

Asset Description

Jones Lang LaSalle America, Inc. (“JLL”) has been exclusively retained by ownership as the sales representative for 4310 Distribution Drive, “the Property”– a 230,000 square foot modern distribution facility in the burgeoning Chattanooga market, featuring tilt-wall construction, 32’ clear heights, and a new 60-mil TPO overlay with 21+ years of warranty remaining. 100% leased to Adorama with 9.7 years of term remaining and 45% below market rent, the Property provides stable, long-term cashflow to a heavily embedded tenant that benefits from prior investments in the asset, including a mezzanine-supported material handling system and partially conditioned warehouse space.

Located just 1.4 miles from Hwy 153 and 7.6 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. 14.8 million consumers can be reached within a 3-hour drive, highlighting the superior connectivity of the Scenic City. Chattanooga industrial market fundamentals have stayed strong with historical vacancy remaining under 5% since 2017 and only 900 KSF of product delivering per year on average over the past four years, limiting the amount of inventory added to the market.

Chattanooga has seen strong population growth of 13.1% since 2010, emphasizing the robust economical 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 5,500 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 demographical growth in nearby MSAs which only supports the future growth of the centrally located city.



Building area gross
21,368 m²
Land area gross
6.89 ha
9.7 years


Investment Highlights

Low basis opportunity with stable long-term cashflow

• 100% leased to Adorama Inc. with 9.7 years of term remaining

• Current in-place rent of $3.71, representing an 82% mark-to-market opportunity

• Ability to acquire a functional asset at significant discount to replacement cost

• Absolute net lease structure with limited landlord responsibilities

Heavily embedded mission-critical operation

• Mission-critical location serving as one of two distribution centers for Adorama Inc.

• Adorama Inc. utilizes a substantial buildout including full building racking and a significant investment into two-story material handling equipment

» By operating their own distribution centers, Adorama enhances their customer reach, optimizing supply chain solutions

• +/- 21,500 SF of conditioned warehouse space for humidity-sensitive products

Institutional quality construction

• 32’ clear height

• Cross-dock configuration

• Tilt-wall construction

• 60-mil TPO roof with 21+ years of warranty remaining

• +/- 21,500 SF of conditioned warehouse space

• 24 dock-high doors & 1 drive-in door

• 100’ – 135’ truck courts

• 259 auto parking spaces

Well located with strong surrounding demographics

• Proximity to major thoroughfares and large infrastructure

» 1.5 miles from Hwy 53

» 4.3 miles from Chattanooga Metropolitan Airport

» 4.4 miles from I-75

» 4.6 miles from VW Plant

• Surrounded by rapidly growing MSAs in all directions

» 102 miles from Knoxville

» 114 miles from Huntsville

» 117 miles from Atlanta

» 143 miles from Nashville

• 14.8 M people reachable within a 3-hour drive

• 13.1% population growth since 2010 within a 30-minute drive radius

• 21.9% of population within a 30-minute drive possess a bachelor’s degree or higher

Contact brokers

4310 Distribution Drive (0 Properties)

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Last updated
9 Jul 2024