Description

Jones Lang LaSalle, Inc. ("JLL"), as exclusive advisor, has been retained to market the opportunity to acquire the fee simple interest in US-1 North - Phase I (the "Project" or "Offering"), two (2) Class A logistics facilities totaling 394,123 SF. Currently 89.3% leased to three (3) tenants, the Project provides investors with durable income while existing first-generation vacancy presents a rare value-add opportunity in the fundamentally-resilient, high-growth Raleigh-Durham industrial market.

The Project features 3.6 years of WALT with contractual weighted average rent escalations of 3.62%, providing strong embedded NOI expansion over the course of ownership. The Project also touts an abundance of institutional-quality features including 32’ clear heights, ESFR sprinklers, motion-activated LED lighting, among many others.

The Offering represents the opportunity to acquire two (2) Class A logistics facilities with the ability to capitalize on a rare lease-to-core business plan through the lease-up of first generation space in one of the country’s premier industrial markets.

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Attributes

Building area net

394,123 sf

Occupancy

89.3%

WALT

3.6 years

Building class

Year built

2024

US-1 North - Phase I (2 Properties)

Media

Investment Highlights

IMMEDIATE VALUE-ADD OPPORTUNITY

• 42,213 SF of brand-new, first-generation space for lease

• Readily leasable suite features 1,967 SF of spec office and eleven (11) 9' x 10' dock-high doors

• Future value creation opportunity via the mark-to-market of Amcor’s in-place rent currently 10% below market

STABLE EXISTING CASH FLOW SUPPORTED BY CREDIT TENANCY

• Currently 89.3% leased to three (3) tenants with 3.6 years WALT and 3.62% weighted average annual escalations

• Founded in 1950, Southwire Company (43.1% of RBA) is one of the largest family-owned businesses in the U.S. and a leading manufacturer of wire and cable products, generating an estimated $9.7 billion in annual revenue (+50% since 2021)

• Occupying 32.0% of the total RBA, Amcor Rigid Packaging USA, a division of Amcor plc (NYSE: AMCR; S&P: BBB), is a multinational developer of flexible packaging and containers for global consumer and healthcare brands including The Coca-Cola Company, Unilever, Johnson & Johnson, among others

ATTRACTIVE ACQUISITION BASIS

• Sustained increases in construction costs coupled with material price increases for well located land sites have led to an increase in replacement cost for like-kind Class A industrial product

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

INSTITUTIONAL-QUALITY CLASS A CONSTRUCTION

• First two (2) buildings to deliver at US-1 North, a 5-building, 106-acre master planned industrial park

• Rear-load concrete tilt-wall construction featuring 32’ clear heights, ESFR sprinklers and motion-activated LED lighting

• Functional design appeals to a broad tenant base

• Multiple storefronts provide flexible leasing optionality

• 45 mil TPO roofs under manufacturer warranty (exp. 2039)

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

• 95.2% average 5-year occupancy rate represents enduring tenant demand for the economically-resilient region

• Strong continued rental rate growth due to a historical supply-demand imbalance with asking rates increasing by more than 57% since 2021 (+7.9% CAGR)

• The Raleigh-Durham market has experienced 5.1 MSF of positive net absorption over the past 24 months