Description

On behalf of Ownership, Jones Lang LaSalle Americas, Inc. ("JLL") has been retained as the exclusive sales representative for Spartan Ridge Logistics Center - Building 2 (the "Project" or "Offering") - a 286,000 square foot Class A logistics facility located in Spartanburg, South Carolina. The Project is 100% leased to three (3) tenants with 4.4 years of weighted average lease term (WALT), delivering consistent, diversified in-place cash flow with substantial value creation opportunities. Notably, 33.5% of the project (Newair, LLC, subleased to Service Transport, Inc.) presents meaningful, near-term upside with current rents 39% below market, while the property in aggregate is 28.1% below market, positioning the asset for significant rent growth and income enhancement.

Strategically positioned just 1.2 miles from I-85, the Project benefits from exceptional connectivity along one of the Southeast's most critical logistics corridors, linking major markets from Atlanta to Charlotte and beyond. This prime location within the high-performing Greenville-Spartanburg industrial market provides tenants with optimal supply chain efficiency while offering investors exposure to a market characterized by strong fundamentals, robust economic growth, and sustained momentum.

Overall, the Offering presents investors with the opportunity to acquire a fully leased Class A multi-tenant logistics facility in a top-tier Southeast market with significant near and long term value-add upside at a highly attractive going-in basis.

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Attributes

Building area gross

286,000 sf

Occupancy

100%

Tenants

WALT

4.4 years

Year built

2020

Media

Investment Highlights

DIVERSIFIED CASH FLOW WITH MARK-TO-MARKET UPSIDE

• The Project is 100% leased to three (3) tenants with 4.4 years of WALT providing stable, diversified cash flow

• 33.5% of the project (Newair, LLC, subleased to Service Transport, Inc.) presents meaningful near-term upside with current rents 39% below market

• In-place rents aggregate 28.1% below market, positioning the asset for significant rent growth and income enhancement

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 Class A industrial product

• Steep discount to recent stabilized transactions throughout the Greenville-Spartanburg market

CLASS A DESIGN WITH MULTI-TENANT FLEXIBILITY

• Timeless tilt-wall concrete with accented paint scheme

• 260’-deep rear-load facility with multiple store fronts for multi-tenant configuration functionality

• 32' clear height, ESFR sprinklers, and LED lighting throughout

• 135-185' truck courts with 31 trailer parking positions and capacity for 66 additional positions

VALUABLE TAX INCENTIVES

• Original 30-year Fee in Lieu of Tax (FILOT) agreement substantially reduces tax expenses over the life of the agreement

• Issuance of new FILOT incentive agreements have been curtailed in Spartanburg County and the greater South Carolina region, making existing FILOT agreements exceptionally valuable for long-term ownership

ADVANTAGEOUS LOGISTICS LOCATION

• Strategically located just 1.2 miles from I-85, the industrial backbone of the Southeast that provides access to major growth markets including Atlanta to the south and Charlotte, Greensboro-Winston-Salem, Raleigh-Durham, and Richmond to the north

• Seamless connectivity to the entirety of the Greenville-Spartanburg market including key economic drivers such as Inland Port Greer (9.6 miles), BMW Group Plant (9.8 miles), and Greenville-Spartanburg International Airport (11.3 miles)

• Positioned less than five miles from I-26, providing direct connectivity to the Port of Charleston and major transportation thoroughfares including I-40, I-20, and I-95

GREENVILLE-SPARTANBURG: HIGH-BARRIERS-TO-ENTRY INDUSTRIAL MARKET

• Greenville-Spartanburg has emerged as the most improved industrial market in the country, establishing itself as one of the most sought-after, high-performing markets in the Southeast

• The market demonstrates exceptional fundamentals with a 94.7% average 10-year occupancy rate and robust rent growth of 44.1% since 2021