Falls Lake Commerce Center

100-300 Business Park Drive, Butner, NC, 27509, US

Description

Jones Lang LaSalle is exclusively marketing Falls Lake Commerce Center (the “Portfolio” or “Falls Lake”), a three (3) building, Class A logistics portfolio totaling 341,867 square feet in the highly sought after Raleigh-Durham MSA. Falls Lake is 100% leased to three (3) diverse tenants with 2.8 years of WALT, providing immediate cash flow backed by an investment grade anchor in United Parcel Service (NYSE: UPS; S&P: A). Additionally, two (2) of the three (3) buildings function as corporate headquarters for their respective tenants, creating an inherently sticky rent roll with deeply embedded operations. The Portfolio sports a balanced rollover schedule and sought-after value creation opportunity via the mark-to-market of in place rents approx. 28.1% below market.

Falls Lake is strategically positioned within one-half mile (0.5 miles) of I-85, the industrial backbone of the Southeast, providing exceptional access to the Raleigh-Durham MSA and the rapidly-growing Sun Belt markets of Richmond, Greensboro-Winston-Salem, Charlotte, Greenville-Spartanburg and Atlanta. Overall, Falls Lake Commerce Center presents investors with a unique opportunity to acquire a footprint of scale at a below replacement cost basis with a significant value creation opportunity in one of the most sought-after markets in the nation.

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Attributes

Building area net

341,867 sf

Occupancy

100%

WALT

2.8 years

Number of buildings

Media

Investment Highlights

SIGNIFICANT UPSIDE SECURED BY ROBUST INVESTMENT-GRADE CASH FLOW

• 100% leased with 2.8 years WALT to national and global tenants, anchored by the recently renewed United Parcel Service (NYSE: UPS; S&P: A; LXD: Aug-2030), providing durable contractual cash flow

• In-place rents approximately 28.1% below market today provide significant value creation opportunity over the course of the investment period

• Strong contractual NOI growth via 3.4% weighted average annual escalations

ATTRACTIVE ACQUISITION BASIS

• Below replacement cost opportunity as a result of sustained increases in construction materials and labor costs, compounded by a scarcity of well-connected developable land in the Raleigh-Durham market

• Steep discount to recent stabilized transactions in the Raleigh-Durham market

CLASS A VERSATILE CONSTRUCTION

• Concrete tilt-wall construction featuring 30' clear heights

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

• 65 trailer parking positions

• ESFR sprinkler systems

• All roofs under manufacturer warranty

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 driven by robust net absorption and rent growth

• Strong continued rental rate growth with asking rates increasing 52.5% since 2020 (+7.3% CAGR)

• 96.3% average 5-year occupancy rate represents enduring tenant demand for the economically-resilient region

HIGHLY-CONNECTED I-85 LOGISTICS LOCATION

• Located within one half mile (0.5 miles) of I-85, the industrial super corridor providing direct access to Raleigh-Durham and the entire Southeast region

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

• Immediate connectivity to the primary demand drivers of the Raleigh-Durham market and its dynamic economy, such as Raleigh-Durham International Airport (RDU) and Research Triangle Park (RTP)