1100 Logistics Parkway Building 1, Rincon, GA, 31326, US

Old Augusta CC Bldg 1 - 2024

자산 설명

On behalf of Ownership, Jones Lang LaSalle America, Inc. (“JLL”) has been retained as the sales representative for the Old Augusta Commerce Center Building 1 (the “Property”). This state-of-the-art, Class-A distribution facility spans 442,606 SF and is situated in the thriving industrial market of Savannah, Georgia. Boasting a prime location just 10 miles away from Savannah’s Garden City Terminal and in close proximity to the key I-95 & I-16 intersection, the Property offers exceptional accessibility to Savannah’s major logistical thoroughfares.

The Property is fully leased with a remaining term of 8.3 years and annual escalations of 3.50%. The lease is guaranteed by Loctek Ergonomic Technology Corporation (SZSE: 300729, 2023 Rev $545 million) – a prominent manufacturer of ergonomic desk solutions. Lecangs, a 3PL subsidiary of Loctek, operates within the building and provides warehousing and logistics services for Loctek.

The industrial market in Savannah is experiencing remarkable growth, fueled by record cargo volumes at the Port, expansion projects, and extensive logistical connectivity. In terms of tracked tenant demand as a percentage of inventory, Savannah ranks first from 2022 through 2023. In 2023 alone, the market witnessed a net absorption of 13.2 million square feet, placing Savannah second in terms of percentage of inventory and more in total than Atlanta. The strong performance has continued into 2024 H1, with over 9.8 million square feet of leases signed (up 156% year-over-year), roughly 730,000 sf shy of 2022's record volume at the mid-year mark.

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개요

건물 총면적

41,119 제곱미터

건축년도

2022

점유율

100%

월트

8.3 년

미디어

투자 하이라이트

Unprecedented Industrial Market fundamentals

13.2 MSF of net absorption in 2023 (more than Atlanta’s 9.7 MSF)
Third consecutive year of annual net absorption surpassing 10 MSF
2nd highest annual net absorption in the market’s history
Over 9.8 MSF of leases signed in 2024 H1
1H leases signed up 156% YoY, right under 2022's record volume
2024 H1 absorption reached second largest 1H volume on record - 6.0 MSF
First in the country for tenant demand and second in net absorption as a percent of market inventory as of Q4 2023
13% rent growth in past two years
39.3 MSF of positive absorption over the last 3 years
Nearly 30 MSF of active tenant requirements to meet 9.0 MSF of speculative development currently under construction.

Highway 21 - a top performing submarket

Since 2020 the Highway 21 Corridor has seen unprecedented growth
The average asking rent increased 48.3% compared to the overall Savannah market at 35.08%
Absorption exploded 15x from 828k total SF between 2014 – 2019 to 12.3M total SF between 2020 – 2024 Q2
The submarket posted these strong numbers all while delivering 13.1M SF since 2020
2024 H1 has seen 5 leases signed for 1.7 MSF representing 11.6% of total current inventory

Financial Highlights

100% leased with 8.3 years of term remaining.
3.5% annual escalations
NNN lease with limited landlord responsibility
Loctek Ergonomic Technology Corporation (Parent & Guarantor, SZSE: 300729, Rev. $545M 2023)
Manufactures products that are changing the conventional workspace, such as standing desks, desk converters, monitor mounts, and desk bikes.
Revenue of $545 million (USD equivalent) in 2023 (23.86% year-over-year revenue growth)
3,000+ employees
20+ years of experience
The operation - Lecangs
3PL subsidiary of Loctek Company
Provides comprehensive eCommerce warehousing and logistics services for Loctek
Recently leased an additional 486k SF in the market demonstrating their commitment to Savannah

Class A Design

442,606 SF state-of-the-art distribution facility
Flexible design with ability to subdivide
Built 2022
Cross-dock; 190′ truck court depth
36′ clear height
158 auto spaces (expandable to 265) and 118 trailer spaces
ESFR sprinklers and LED lights
50′ x 54′ column spacing and 60’ speed bays
Tilt-wall construction
60-mil TPO membrane roof with 20-year warranty
7″ thick, 4,000-psi unreinforced concrete slab bearing on compacted subgrade
85 dock-high doors - 43 are equipped with 40,000 lb levelers with dock seal & plug-in lights
4 drive-in doors

REIT Share - These assets are held by entities taxable as REITs, and an acquisition of the assets will need to be structured as acquisition of the shares of the REITs, instead of an acquisition of the underlying real estate. Ownership has not established an asking price for the REIT shares, but is a market-oriented Seller with expectations that are consistent with the quality of the assets and the unique nature of the opportunity.