Rickenbacker Multi-Tenant Logistics Portfolio

Lockbourne, OH

Portfolio description

Jones Lang LaSalle Americas, Inc. (“JLL”) has been exclusively retained to offer for sale the fee simple interest in the Rickenbacker Multi-Tenant Logistics Portfolio (the “Portfolio” or the “Offering”), two Class A industrial buildings located at 2315 and 2500 Creekside Parkway in Lockbourne, OH. Delivered in 2008 and 2014, the 253,680 SF Creekside X and the 254,099 SF Creekside XI are 30’ clear, rear-load assets each leased to four tenants with an average suite size of 63,000 SF. With 5.3 years of weighted lease term remaining across eight tenants, the Portfolio is defined by consistent cash flow growth with 3% average contractual rent increases and an estimated 28.1% mark-to-market opportunity on in-place rents, providing future ownership with a path to outsized returns as leases roll to market. As such, the Rickenbacker Multi-Tenant Logistics Portfolio represents a unique opportunity to acquire modern industrial product that is extremely costly to replicate with a diverse tenant mix, growing cash flow stream, and future yield upside created by trade outs and validated by current ownership’s leasing successes.

The Portfolio is set within a dense pocket of Columbus’s premier Southeast industrial submarket, a location defined by access to key transportation infrastructure including I-270, I-71, Rickenbacker International Airport, and Norfolk Southern’s Rickenbacker Intermodal Terminal which creates one of the most in-demand logistical locations in the central U.S. Beyond the submarket, Columbus’s strategic central location and business-friendly environment has drawn substantial investment from companies such as Intel, Amazon, and Google in recent years. While strategic transportation infrastructure and investment in Columbus broadly benefits the Portfolio, so does the correlated population growth of Columbus - which ranked as the fastest growing city in the U.S. the second half of 2023 per Bank of America. With a unique ability to appeal to a wide-range of industrial users given a diversity of suite sizes, the Rickenbacker Multi-Tenant Logistics Portfolio is poised to

continue to benefit from its strategic location at the industrial epicenter of the Midwest’s fastest-growing market.

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Attributes

Land area gross

10.36 ha

Building area gross

47,174 sm

Occupancy

100%

Tenants

WALT

5.3 years

Rickenbacker Multi-Tenant Logistics Portfolio (2 Properties)

Media

Investment highlights

Strategically Positioned Assets in an Institutional Micro-Market

The Rickenbacker Multi-Tenant Logistics Portfolio is well-positioned within an established industrial pocket located just north of the Rickenbacker International Airport. This area continues to attract the most sought-out occupiers including Amazon, Walmart, GEODIS, Coca-Cola, PepsiCo, Kroger, and Cardinal Health. Owners in this corridor include Blackstone, Brookfield Properties, EQT Exeter, Mapletree, and Prologis.
The assets are located on Creekside Parkway directly adjacent to and connected to both Rohr Road and Alum Creek Drive. These two roads are main channels within the Columbus industrial market and provide access to the surrounding highways, airports, and intermodal terminals.

Functional, Modern Industrial Product Below Replacement Cost

The Portfolio remains highly productive, with an average vintage of 2011, these 30’ clear, rear load assets have benefitted from current ownership’s physical upgrades including new parking lots and cosmetic work, keeping relations with current tenancy strong and leading to an average of 9.1 years of tenure across the Portfolio.
Each of these multi-tenant buildings are demised into four suites, an expensive configuration to replicate in existing or new product. JLL estimates that the development of similar product in the submarket would be $125 PSF+, given current costs for land, construction, and materials.

Stable In-Place Cash Flow with Significant Upside Potential

5.3 years of WALT and 3% annual rent escalations across the in-place leases provides a growing in-place cash flow stream backed by diverse tenants with strong credit profiles.
JLL projects a 28.1% mark-to-market opportunity on in-place rents, which allows investors to steadily grow cash flow over the Portfolio’s staggered rollover schedule.

Columbus Continuing to Show Strong Population & Labor Growth

The Columbus MSA experienced 15.1% population growth between the 2010 and 2020 censuses, outpacing most of the country including smile state cities such as Houston, Phoenix, and Nashville.
This pattern has continued recently with a 1.1% increase in population in just the second half of 2023, making Columbus the fastest growing city in the country for that period.