ARA Nabs 846 KSF Atlanta-Area Industrial Asset
- May 02, 2017
American Realty Advisors has acquired Phase I of King Mill Distribution Park, a 846,496-square-foot Class A distribution facility located in the Atlanta submarket of McDonough, Ga. The seller, King Mill Distribution Park LLC, a Trammell Crow Atlanta development, was represented by Frank Fallon, Chris Riley and John Farell of CBRE’s Investment Properties Group in Atlanta.
Phase I of King Mill Distribution Park is located on a 44.4-acre site at 130 Distribution Drive, within 2 miles from Interstate 75, which is the primary route from Atlanta to Florida and a direct connection to the Port of Savannah. The asset was built in 2016 and features state-of-the-art building specifications, including cross-dock configuration, ESFR sprinkler system, ductilcrete flooring systems, 36-foot minimum clear height, 171 dock-high loading doors, four drive-in doors, 185-foot full concrete truck courts, grade-level parking and 237 trailer storage positions. According to Yardi Matrix data, the property became subject to an $18.8 million construction loan held by JP Morgan Chase in 2015.
The asset was 100 percent leased at the time of the transaction to CastleGate Logistics, a Wayfair subsidiary, which is a Boston-based e-commerce retailer specializing in home furnishing and décor.
Phase II of King Mill Distribution Park will feature a 760,256-square-foot industrial warehouse, located at 150 Distribution Drive. The property is currently under construction and subject to a $18.1 million construction loan, Yardi Matrix data shows. The construction is slated for completion by September 2017.
“The high-quality construction and top-of-the-line material selections should result in the property maintaining its competitive advantage in the marketplace. Along with lower maintenance costs, this should drive attractive long-term returns for our investors,” said David Willett, senior director at ARA, in a prepared statement.
“Our investment in King Mill Distribution Center is consistent with ARA’s risk-adjusted core investing strategy to add in-place income growth to the portfolio with future appreciation upside potential in top-tier markets that are positioned to withstand any potential future economic shifts,” added David Hubbs, senior portfolio manager at ARA.
American Realty Advisors has over $8 billion in assets under management. In June, ARA will be relocating its headquarters from Glendale, Calif., to downtown Los Angeles.
Images courtesy of American Realty Advisors