161 Tradition Trail

161 Tradition Trail, Holly Springs, NC, 27540, US

Description

Jones Lang LaSalle Americas, Inc ("JLL") has been retained as the exclusive sales representative for 161 Tradition Trail (the "Property") - a 128,385 square foot industrial asset in the high-barrier-to-entry Raleigh-Durham industrial market. The asset is 100% leased to Trensor, LLC ("Trensor") featuring 6.1 years of remaining term with strong 3.50% contractual annual escalations, under-market rents and a highly invested tenant. Trensor is a specialized global technology leader in the design and manufacturing of pressure/temperature combination sensors. Founded in 2009, the company acts as a strategic Tier 1 and Tier 2 supplier to original equipment manufacturers (OEMs) and a key provider to the global automotive aftermarket, specifically major automotive parts retailers including AutoZone and O'Reilly Auto Parts.

Irreplaceably located in Holly Springs Business Park, adjacent to several of the region's largest economic development projects, the asset is uniquely qualified to appeal to the Triangle's deep bench of high-quality, cutting-edge industrial users given the facility's combination of newly renovated Class A+ office and fully-conditioned warehouse. 161 Tradition Trail sits at the heart of Holly Springs/Southwest Wake County, which has evolved into one of the most prolific industrial, advanced manufacturing, and life science enclaves in the Southeast. The Property resides just minutes from the newest leg of Raleigh's Interstate 540 beltway and 15 minutes from Research Triangle Park.

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Attributes

Building area net

128,385 sf

Occupancy

100%

WALT

6.1 years

Year built

2006

Land area gross

8.43 acres

Media

Investment Highlights

STABLE, IN-PLACE CASH FLOW WITH STRONG CONTRACTUAL YIELD EXPANSION

• 100% leased to Trensor, LLC ("Trensor") with 6.1 years of term remaining

• Strong contractual yield expansion via 3.50% annual escalations provides 18.75% NOI growth throughout the remainder of the term

• Trensor, a portfolio company and brand of Marmon Holdings (a Berkshire Hathaway company), is a specialized global technology leader in the design and manufacturing of pressure/temperature combination sensors

BELOW-MARKET RENT AND ENTRENCHED TENANCY

• The in-place rent is significantly below the point of replication, particularly given the facility's recent improvements, market development yield requirements, and submarket land pricing comfortably north of $500,000 per acre

• Trensor is heavily invested in its operation via a robotic packaging system and VNA (Very Narrow Aisle) racking to optimize its footprint

• Competing asset classes and elevated land values will continue to constrain industrial inventory within Holly Springs, putting significant upward pressure on rents

IRREPLACEABLE INDUSTRIAL FACILITY WITH BRAND-NEW HIGH-VALUE IMPROVEMENTS

• Approximately 20,000 SF of newly-renovated best-in-class two-story office creates a desirable corporate industrial facility uniquely positioned to house the world-class users that Holly Springs attracts

• A fully air-conditioned warehouse, elevated lighting levels, versatile loading, and flexible parking/outdoor storage supports functional light assembly and distribution operations with temperature control requirements - a popular prerequisite in the RDU market

• Trensor not only uses the facility as its East Coast employment and logistics hub, but it also serves as a customer experience center

RED-HOT SOUTHWEST WAKE COUNTY INDUSTRIAL SUBMARKET WITHIN HIGH-BARRIERS-TO-ENTRY RDU

• 161 Tradition Trail is situated in the Southwest Wake submarket, one of the highest performing in the Raleigh-Durham metro area, touting +65% rent growth since 2020

• World-class industrial and biomanufacturing users have recently planted major operations in the submarket via purchases, built-to-suits and spec shell leases

• Raleigh-Durham continues to bolster its position as one of the most sought-after, high-performing industrial market in the Southeast with NNN asking rents increasing by more than 55% since 2020 (+6.5% CAGR)

• The Raleigh-Durham industrial market has a 96.5% average 10-year occupancy, representing the enduring tenant demand market-wide

EMBEDDED WITHIN THE HEART OF HOLLY SPRINGS AND SOUTHWEST WAKE COUNTY: THE TRIANGLE'S HOTTEST LIVE-WORK-PLAY DESTINATION

• In 2026, Holly Springs is estimated to eclipse 25% population growth since 2020, putting it on the list of the fastest-growing towns in the entire country

• The Property is located within Holly Springs Business Park which is home to $5.4 billion of corporate investment alone between Seqirus, Fujifilm and Ypsomed

• The facility also sits just minutes from 12 Oaks and Veridea, two of the region's largest mixed-use developments