6009 Coffey Street, Raleigh, NC, 27604, US

Knightdale Gateway

Description

Jones Lang LaSalle Americas, Inc. ("JLL") has been retained as the exclusive sales representative for Knightdale Gateway (the "Property"), a 511,233 square foot Class A logistics property delivered in 2024 by Beacon Partners in the dynamic Raleigh-Durham, North Carolina MSA. The offering is 100% leased to five (5) tenants with 7.4 years of WALT, generating immediate and stable cash flow anchored by Siemens Corporation (S&P: AA-). The Property features strong contractual rent growth with 3.7% average annual escalations. Knightdale Gateway showcases institutional-quality design with efficient 260'-deep rear-load configurations, 36' clear heights, ESFR and LED lighting with motion sensors, and a shared fully concrete truck court with 18 trailer parking spaces.

Knightdale Gateway is strategically located at a newly constructed full movement signalized intersection along US 64 (just 12 minutes from the Raleigh CBD). The "last mile" infill location is uniquely positioned between Raleigh's inner and outer beltlines, I-540 (1 mile) and I-440 (2.5 miles), offering exceptional accessibility across the greater Raleigh-Durham MSA. Despite having one of the fastest population growth rates in Wake county (doubling in size since 2000), Knightdale has proven to be one of the highest barrier-to-entry industrial development markets in North Carolina - with only two other new industrial parks developed across the market since 2015 (Hinton Oaks & Eastgate540) - resulting in sustained rent growth that has outpaced the broader Triangle MSA (7.6% CAGR since 2020).

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Attributes

Building area net

511,233 sf

Occupancy

100%

Year built

2024

Land area gross

54 sf

WAULT

7.4 years

Media

Investment highlights

CREDIT-ANCHORED CASH FLOW WITH FUTURE VALUE CREATION

• 100% leased to five (5) tenants, including two separate divisions of the Fortune Global 50 credit anchor Siemens Corporation (S&P: AA-) ("Siemens"), with 7.4 years of WALT

• Strong contractual cash flow growth with blended 3.7% annual rental escalations, providing consistent yield expansion

• Significant mark-to-market potential due to in-place rents roughly 18% below current market rates. With all renewal options set at Fair Market Value (FMV), the Property is well-positioned to capitalize on the submarket's 73.5% rent growth since 2020

IRREPLICABLE EAST WAKE COUNTY LOCATION

• Situated in an irreplaceable, infill location along US-64 (12 minutes to the CBD), uniquely positioned between Raleigh's inner and outer beltlines, I-540 (1 mile) and I-440 (2.5 miles), offering exceptional accessibility to the entire Raleigh-Durham metro

• Highly accessible location provides connectivity to more than 500,000 residents within a 10-mile drive, solidifying last-mile distribution capabilities in the fast-growing Raleigh area

• Incredibly high barrier to entry zoning entitlements across Knightdale have created one of the most supply-constrained sub-markets in the Carolinas. Notably, Knightdale's recent adoption in July-24 of its 'Knightdale Next' Comprehensive Plan and corresponding Future Place Type Map restricts future master-planned industrial development. The land use map identifies only four viable industrial locations across the entire market, all of which are in vicinity of existing, built-out parks - creating a true operational moat for recently delivered Class-A inventory

INSTITUTIONAL-QUALITY DESIGN WITH OVER $2.75 MILLION IN ABOVE-MARKET ENHANCEMENTS

Knightdale Gateway stands out as a best-in-class institutional development, distinguished by its premium architectural enhancements, tenant-centric features, and robust long-term durability. Ownership invested significant upfront capital, surpassing standard design specifications to elevate both the building's aesthetics and operational performance. This commitment is only matched by the substantial capital tenants have invested into their spaces, collectively establishing the Property as a generational logistics asset in the Raleigh-Durham industrial market