Union Cross Industrial Center

Winston-Salem, NC, US, Americas

Description

Jones Lang LaSalle Americas, Inc. (“JLL”), as exclusive advisor, has been retained to market the opportunity to acquire the fee simple interest in the Union Cross Industrial Portfolio (the “Project” or “Offering”), two (2) single tenant Class A logistics facilities totaling 340,000 square feet. The Offering is currently 100% leased and serve as mission-critical locations for two distinguished tenants, Bunzl Distribution (S&P: BBB+) and SouthernCarlson and is ideally located in a fundamentally strong, high-growth Sunbelt market in the Greensboro-Winston-Salem-High Point (“Triad”) industrial market.

The Project features 4.5 years of WALT as a result of a recent five (5) year renewal by SouthernCarlson and offers a future value creation opportunity with a mark-to-0market of rents currently 23% below market. Moreover, the Union Cross Industrial Portfolio provides additional upside through 110,000 square feet of potential expansion opportunity.

Overall, the Union Cross Industrial Portfolio represents an attractive opportunity to acquire two (2) single-tenant Class A logistics facilities housing mission-critical operations for two (2) prominent tenants. With expansion capacity and rents currently 23% below market, investors are well-positioned to capture future upside at an attractive acquisition basis.

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Attributes

Building area net

31,587 m²

Land area gross

13.22 ha

Union Cross Industrial Center (2 Properties)

Media

Investment Highlights

DURABLE INVESTMENT GRADE CASH FLOW

• 100% leased to Bunzl Distribution (S&P: BBB+) and SouthernCarlson with 4.5 years of WALT with ±3.0% weighted average annual escalations

• Recent five (5) year renewal by SouthernCarlson demonstrates fresh commitment to space

• Bunzl Distribution (S&P: BBB+) is a leading global 3PL specializing in the distribution and outsourcing of packaging, supplies, and cleaning and safety products to more than 10,000 supplier relationships worldwide

• SouthernCarlson is a national distributor of packaging and construction supplies to name-brand clientele. Union Cross is the largest distribution center for the company

FUTURE VALUE CREATION OPPORTUNITIES

• In-place rents currently 23% below market

• 110,000 square foot expansion potential at 4991 Millennium Dr

ATTRACTIVE ACQUISITION BASIS

• Below market rents combined with sustained increases in construction materials and labor costs provide acquisition opportunity at a below-replacement cost basis

CLASS A VERSATILE CONSTRUCTION

• Concrete tilt-wall construction featuring 32’ clear heights

• ESFR sprinkler systems

• Motion-sensored LED lights

• Abundant auto and trailer parking

• All roofs under manufacturer warranty

HIGHLY-CONNECTED LOGISTICS LOCATION

• Located less then three (3) miles from I-40 which provides access to the Triad's world-class interstate network which includes I-73, I-85, I-285 and US-421

• Exceptional access to the Triad's infrastructure network including the Piedmont Triad International Airport (GSO), home to the FedEx Express Mid-Atlantic Air Hub

• Construction underway on the future I-74 corridor providing further increased connectivity to the market's major interstate network