LifeScience Logistics at Durham85_Property for Sale

2360 Ferrell Road, Durham, NC, 27704, US

LifeScience Logistics at Durham85

Asset Description

On behalf of Ownership, Jones Lang LaSalle Americas, Inc. (“JLL”) has been retained as the exclusive sales representative for LifeScience Logistics at Durham85 (the “Property”) - a 250,541 square foot Class A logistics facility situated in the high-barriers-to-entry Raleigh-Durham industrial market. The asset is 100% leased to LifeScience Logistics, LLC, (LSL) featuring 9.2 years of remaining lease term with strong 3.50% contractual annual escalations. LSL is a leading supply chain service provider in the healthcare and pharmaceutical industries. With strategic investments from major investors such as Blackstone (NYSE: BX; S&P: A+), LSL is well-positioned to service industry giants such as Novo Nordisk, Biogen, among others.

The Property is strategically positioned adjacent to I-85 and just ten (10) minutes from Research Triangle Park (RTP), one of the country's most successful dedicated research park environments, allowing LSL to seamlessly service to its client base. Featuring a best-in-class versatile design, the 260'-deep rear-load facility possesses multiple store fronts offering future leasing flexibility. Overall, LifeScience Logistics at Durham85 offers investors the opportunity to acquire a best-in-class, core logistics facility in one of the highest barriers to entry industrial markets in the country with secure, in-place cash flow and robust 3.50% annual escalations.

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Attributes

Building area net

23,276 m²

Occupancy

100%

WALT

9.2 years

Building class

Year built

2024

Lease type

Net lease (N/NN/NNN)

Media

Investment Highlights

COMMITTED TENANCY WITH LONG-TERM, STABLE CASH FLOW AND STRONG CONTRACTUAL RENT GROWTH

• 100% leased to LifeScience Logistics, LLC (LSL) with 9.2 years of remaining term

• 3.50% annual escalations provide strong contractual yield growth

• Two (2), 10-year Fair Market Value (FMV) renewal options allow investors to push rental rates, already approx. 14.2% below market, in the fundamentally-strong, high-growth Raleigh-Durham market

INSTITUTIONAL-QUALITY, VERSATILE CONSTRUCTION

• Concrete tilt-wall construction with attractive glass lines

• 260'-deep rear-load configuration

• 32' clear heights paired with ESFR sprinklers

• Multiple storefronts offer future demising flexibility to accommodate a wide range of users with varying suite sizes

• 60mil TPO roof under manufacturer warranty (exp. 2043)

RALEIGH-DURHAM: HIGH-BARRIERS-TO-ENTRY INDUSTRIAL MARKET

• Raleigh-Durham continues to bolster its position as one of the most sought-after, high-performing industrial markets in the Southeast behind robust net absorption and rent growth

• Strong continued rental rate growth due to a substantial supply-demand imbalance with asking rates increasing 60% since 2020 (+9.9% CAGR)

• 97% average 5-year occupancy rate represents enduring tenant demand for the economically-resilient region

HIGHLY-CONNECTED I-85 LOGISTICS LOCATION

• Located within two (2) miles of I-85, the industrial super corridor providing direct access to Raleigh-Durham and the entire Southeast region

• Immediate connectivity to Research Triangle Park (RTP) (15 minutes), the largest scientific research park in the United States, allowing LSL to seamlessly cater to its client base

• Direct access to Raleigh-Durham International Airport (RDU) (20 minutes)

• Easy access to major transportation thoroughfares including I-885, I-40, and I-540, connecting the Property to every corner of the Raleigh-Durham region