Gladstone Acquires Industrial Property for $30M
- Mar 12, 2020
A newly built distribution center that will serve as an important link for GE Appliances’ supply chain was just sold. Gladstone Commercial purchased the industrial distribution center in Crandall, Ga., for $30.3 million from an undisclosed seller. The initial capitalization rate for the acquisition was 6.3 percent, with an average capitalization rate of 6.9 percent.
Located at 6900 Highway 411 N., the 504,000-square-foot distribution center is a build-to-suit development for GE Appliances, a subsidiary of home appliances manufacturer Haier Smart Home. The newly built industrial property is 100 percent leased to GE Appliances with 10 and a half years remaining on the lease.
The property, known as Southern Logistics Center, will allow GE Appliances to import and distribute appliance components through the Appalachian Regional Port, an inland port in Georgia, via rail from the Port of Savannah. The industrial property is also the first fulfillment and distribution warehouse in the Appalachian Regional Port, according to GE.
Buzz Cooper, a senior managing director for Gladstone, said the REIT is continuing its expansion into targeted growth locations with the latest Crandall acquisition. The purchase also kicked off Gladstone’s initiative for inland port properties.
Gladstone’s Georgia portfolio includes other industrial properties but also an office in both Atlanta and Columbus. Outside of Georgia, Gladstone purchased a fully-leased industrial portfolio in Michigan for $21.3 million in November 2018.
GE’s strategic link
Bill Good, GE’s vice president of supply chain, said in prepared remarks that their new distribution center will reduce lead time on components and ensure its manufacturing plants have the necessary materials.
The $32 million Southern Logistics Center will help improve GE’s efficiency of inbound parts and materials transportation by 30 percent and eliminate more than 3 million long-haul trucking miles. The Georgia industrial property is the latest investment into their product supply chain, which they’ve poured more than a half a billion dollars into, including $130 million into Georgia.