South 40 Distribution Center 2025

2201 S Wilmington St # 2201, Raleigh, NC, 27603-2559, US

Description

Jones Lang LaSalle Americas, Inc. (“JLL”) has been retained as the exclusive sales representative for South 40 Distribution Center (the “Property”) – a 482,548 square foot infill credit anchored property located in the high-barrier-to-entry Raleigh-Durham industrial market. The asset is 100% leased to six (6) tenants with 4.0 years of remaining term, offering immediate and stable cash flow anchored by UPS (NYSE: UPS; S&P: A-). The Property also benefits from near-term value creation through mark-to-market of rents that are more than 53% below market.

Located in Raleigh-Durham, the Property benefits from strong connectivity to major interstate thoroughfares including I-40, I-440, I-540 and I-85, the industrial backbone of the Southeast. The highly-infill location is approximately one (1) mile south of the Raleigh CBD and enjoys quick access to I-40, Raleigh’s beltline, offering seamless access to the entire MSA. Overall, South 40 Distribution Center provides investors with a rare opportunity to establish a footprint at a highly-infill location, at a well-below-replacement-cost basis in one of the highest barriers to entry industrial markets in the country.

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Attributes

Building area net

502,495 sf

Year built

2000

Media

Investment highlights

SIGNIFICANT NEAR-TERM VALUE CREATION SECURED BY IN-PLACE CASH FLOW

• The Property is 100% leased to six (6) tenants with 4.0 years of WALT

• Short WALT enables near-term capture of 53.5% mark-to-market opportunity in a supply-constrained infill submarket

• Strong contractual yield-expansion via 3.19% weighted average annual escalations

• Over 11 acres of extremely desirable and rare infill outdoor storage area

BELOW REPLACEMENT COST ACQUISITION BASIS

Situated on over thirty (30) acres just one (1) mile from downtown Raleigh, the Property presents the opportunity to acquire a footprint of scale at a well below replacement costs basis

LAST MILE, URBAN INFILL LOCATION

• Strategically positioned adjacent to I-40, the primary interstate artery of Raleigh-Durham, the Property enjoys phenomenal visibility with seamless access to all points of the MSA

• The Property sits minutes from Downtown Raleigh and within 10 minutes of some of the fastest growing corners of the MSA including Cary, Apex, North Hills, Garner and Clayton

RALEIGH-DURHAM: HIGH-BARRIER-TO-ENTRY INDUSTRIAL MARKET

• Raleigh-Durham continues to bolster its position as one of the most sought-after, high-performing industrial markets in the Southeast behind robust net absorption and rent growth

• Strong continued rent growth with NNN asking rates increasing by more than 55% since 2020 (+7.6% CAGR)

• 96.9% average 10-year occupancy rate represents the enduring tenant demand

OPPORTUNITY ZONE REDEVELOPMENT POTENTIAL

• Located in an Opportunity Zone, the Property is a prime candidate for future repositioning and/or new development given the highly sought-after infill location

• Strategic positioning along established transportation corridors with direct access to Raleigh's expanding urban core creates optionality for adaptive reuse as retail, office, or mixed-use development