10741 Farrow Road, Blythewood, SC, 29016, US

Carolina Pines

Asset description

Carolina Pines is a 210,600 SF Class A mission-critical distribution facility located in the Columbia, South Carolina MSA. The Property is 100% leased to Charter Next Generation, Inc. (“CNG”), a subsidiary of global investment giant KKR (NYSE: KKR; S&P: A) and Leonard Green & Partners, L.P. (“LGP”), featuring 5.6 years of remaining term, providing stable in-place cash flows and strong contractual yield expansion via 3.50% annual escalations. Carolina Pines sits directly adjacent to CNG’s $85 million manufacturing facility, making the Property the mission-critical distribution leg to the company's operation, allowing them to reach clients throughout the Southeast and across the United States.

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Attributes

Building area net

210,600 sf

Occupancy

100%

Year built

2023

Media

Investment highlights

SECURE IN-PLACE CASH FLOWS WITH FUTURE UPSIDE

• 100% leased to Charter Next Generation, Inc. (“CNG”), a subsidiary of global investment giant KKR (NYSE: KKR; S&P: A) and Leonard Green & Partners, L.P. (“LGP”), with 5.6 years of remaining term

• Robust contractual yield expansion via 3.50% annual escalations

• Future value creation opportunity via the mark-to-market of in-place rent approx. 6.5% below market

MISSION-CRITICAL FACILITY WITH SUBSTANTIAL TENANT COMMITMENT

• Positioned directly adjacent to CNG's $85 million manufacturing facility and serving as their only distribution location in the Southeast, making the Property absolutely mission-critical

• CNG and Ownership have invested substantial capital in order to insulate and fully condition the space and bring the Property to clean and food-grade standards

HIGHLY FUNCTIONAL LOGISTICS FACILITY WITH LEASING FLEXIBILITY

• Concrete tilt-wall construction featuring institutional-quality design

• 32’ clear, ESFR sprinklers, motion-sensor LED lighting throughout

• 45mil TPO roof with 15-year warranty (exp. 2038)

• Four (4) storefronts and abundant double-row auto parking offers advantageous future leasing flexibility

VALUABLE TAX INCENTIVES

• The Property holds a 30-year fee in Lieu of Tax (FILOT) agreement that fixes the property tax obligations for the life of the incentive

• The FILOT substantially reduces the total tax burden by approximately $4.2 million, resulting in annual tax savings of $0.55 to $0.82 PSF over the duration of the agreement

• Ten (10) years of additional Special Source Revenue Credits (SSRCs)

• Issuance of new FILOT incentive agreements have been curtailed in Richland County, making existing FILOT agreements exceptionally valuable for long-term ownership

STRONG DISTRIBUTION LOCATION WITH FUTURE INFASTRUCTURE EXPANSION

• Positioned within a mile of the I-77 & US-21 interchange which provides direct access to I-26 & I-20, offering exceptional connectivity to the Columbia MSA and surrounding region

• Located within a thirty (30) minute drive of Columbia, South Carolina, the state capital of the Palmetto State and its 2nd-largest city, as well as the home of the University of South Carolina, a top R1-rated Research University

• South Carolina Department of Transportation (SCDOT) recently broke ground on a new I-77 Exit 26 interchange to serve the future $2 billion Scout Motors Manufacturing facility and provide access for future development in Blythewood, SC. The project is expected to cost $200 million with a targeted completion date in Q4 2026.

STRONG INDUSTRIAL FUNDAMENTALS

• Vacancy across the Columbia, SC MSA remains stable at +93% in the 63 MSF industrial market that has seen nearly 1.7 MSF of positive net absorption in the last 24 months

• Average rental rates have skyrocketed due to supply-demand imbalance with asking rents growing 50% since 2020 (+8.4% CAGR)