LRC Properties’ First Foray in Memphis
- Jan 19, 2021
LRC Properties has entered the Memphis, Tenn., commercial real estate market with its acquisition of the Technicolor Building. The firm acquired the industrial building for $23 million from an undisclosed private company, Karie Nero, principal of LRC Properties, told Commercial Property Executive. The seller was represented by NAI Saig Co.’s Brian Califf.
The 640,000-square-foot industrial building is located at 4926 Southridge Blvd., within the Southridge Industrial Park. The Class A cross-docked building features 30-foot clear heights, 45 dock doors, 13,200 amps of power, HVAC and ESFR sprinklers. Nero told CPE that Technicolor will fully occupy the space until July 2023, continuing to use the building for its DVD distribution and returns processing center.
LRC’s first Memphis acquisition
LRC’s acquisition of the Technicolor Building represents the firm’s first commercial real estate asset in Memphis. Nero said in prepared remarks that LRC views Memphis as a key market that will improve during 2021 and beyond. Nero also told CPE that the market offers a strong labor pool and average rental rates at $3.42 per square foot, while also being home to an expanding inland port, five Class I railroads, the second-largest cargo airport and the third-busiest trucking corridor in the U.S.
While LRC is now invested in the Memphis market, its portfolio mainly consists of commercial properties in North Carolina, alongside a couple in South Carolina, and one office property in Jacksonville, Fla. Last year, LRC alongside New York Life Insurance Co. sold a 1.4 million-square-foot distribution warehouse in Charlotte, N.C., for $63.8 million. However, with the latest Memphis acquisition, LRC’s portfolio now totals approximately 4 million square feet of commercial properties in the southeastern U.S., with assets under management nearing $600 million.