Mobile Portside - Bldgs. D & N_Property for Sale

Theodore, AL, US, Americas

Mobile Portside - Bldgs. D & N

Portfolio description

Jones Lang LaSalle America, Inc. (“JLL”) has been exclusively retained by ownership as the sales representative for Mobile Portside – Bldgs. D & N, also known as “the Properties, the Package” – two (2) rear-load distribution facilities totaling 373,015 square feet located in Mobile, Alabama. The deal features two newly constructed, Class A+ industrial buildings with 32′-36′ clear heights, 180′-185′ truck courts, and 45-mil TPO roofs with 15-year warranties. The Properties are 100% leased to 4 tenants with a weighted average lease term (WALT) of 7.0 years, which include high-quality lease guarantors Simpson Manufacturing (NYSE: SSD | $2.2B 2023 Rev) and Veyer ($5.3B 2023 Rev), a wholly-owned subsidiary of The ODP Corporation (NASDAQ: ODP | $7.8B 2023 Rev). These state-of-the-art industrial facilities are strategically positioned along Interstate 10, one of Mobile’s major logistical thoroughfares, providing direct access to the Port of Mobile, only 13.3 miles away.

Located within the South Alabama Logistics Park, the Properties provide investors the ability to acquire two (2) fully stabilized assets in one of the most well-located, Class A industrial parks in the market. The Port of Mobile is one of the most efficient and accessible ports in the nation and the deepest port on the Gulf of Mexico. Having seen 122% TEU growth over the last decade, the Port of Mobile is the 2nd fastest growing terminal in the country with a need for significant expansion of the industrial base to service the Port. The Mobile industrial market boasts a 5-year average vacancy rate of 5.1% and current vacancy of 5.6%, remaining a historically tight market and with substantial tenant demand driven primarily by port-related users.

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Attributes

Number of buildings

Occupancy

100%

Year built

2023

WALT

7 years

Rentable area

34,521 m²

Mobile Portside - Bldgs. D & N (2 Properties)

Media

Investment Highlights

Institutional Quality, Class A+ Construction

Two (2) building logistics portfolio
Total square footage of 373,015
Newly constructed, Class A+ design
Tilt-wall construction
Rear-load configurations
32′ – 36′ clear heights
180′ – 185′ truck courts
45-mil TPO roofs w/ 15-year warranties
Market appropriate multi-tenant functionality
240′ – 310′ building depths
ESFR fire sprinklers
Ample auto and trailer parking

Financial Highlights

100% leased to 4 tenants w/ 7.0 years WALT
3.0% and 3.5% avg. annual escalations
Bldg. D - 204,366 SF
50.2% leased to DC Safety w/ 8.1 years of term
Top supplier to major OEM automotive manufacturers
49.8% leased to Chadwell Supply w/ 5.5 years of term
Largest privately owned MRO supply company in U.S.
Bldg. N - 168,649 SF
60.2% leased to Veyer ($5.3B 2023 Rev) w/ 7.3 years term
Subsidiary of ODP Corp. (NASDAQ: ODP | $7.8B 2023 Rev)
39.8% leased to Simpson Strong-Tie w/ 7.2 years term
Guarantor: Simpson Manufacturing (NYSE: SSD | $2.2B 2023 Rev)
NNN leases with limited landlord responsibilities

Mobile Industrial Fundamentals

Class A properties make up only 12% of the Mobile industrial market, further increasing tenant demand for Mobile Portside
Class A vacancy of 1.8%, 380 basis points lower than the total market's average
Q2 2024 vacancy - 5.6%
Down 190 bps from 2023
Historically tight market with 5-year average vacancy rate of 5.1%
21% rent growth YTD since 2023,
49% rent growth since 2022
Over 500k SF absorbed in H1 2024

South Alabama Logistics Park

1,000+ developable acre master-planned industrial park
11.1 million square feet of industrial space in total when park is completed
Close proximity to I-10 and Hwy 90
One of the most well-located Class A industrial parks in the market
13.3 miles to Port of Mobile

Port of Mobile

2nd fastest growing port over the past decade, with 122% growth in both imports and exports
Encompassing 3,600 acres with 18 cargo handling facilities including 33 berths spanning 4 miles
Deepest port in the Gulf of Mexico – $365M project to be completed in early 2025, deepening the channel to 50′
Soon to be the preferred first port of call in the Gulf of Mexico
Produces $85B in economic impact to state of Alabama
$2.4B in state and local tax revenue
350,000+ jobs
$104M 32-acre phase IV terminal expansion will expand annual TEU capacity from 650K to 1M
Access to five (5) Class 1 railroads and four (4) short lines

Philip Yost is licensed broker in the state of Alabama

CBRE

Senior Vice President

(205) 262-4701

License #: 000082630-0