Plymouth Completes $90M in Industrial Transactions

The REIT acquired more than 2.2 million square feet in Tennessee, Illinois and Ohio.
4600 Pleasant Hill Road. Image courtesy of Plymouth Industrial REIT
4600 Pleasant Hill Road. Image courtesy of Plymouth Industrial REIT

Plymouth Industrial REIT has paid $90 million for more than 2.2 million square feet in properties across three states. Pendleton White Jr., the company’s president & chief investment officer, told Commercial Property Executive that they’d likely only need to do some minor upgrades in the short term as the properties are in good condition. He added Plymouth will look at some possible capital improvements for the older properties several years down the road.

In Memphis, Tenn., Plymouth purchased two industrial buildings at 4540 and 4600 Pleasant Hill Road for $22.1 million. The acquisition was funded with $12.6 million in cash and the assumption of a $9.5 million mortgage loan. Both structures are part of Southpark Distribution Center and total more than 566,000 square feet, all of which is leased to outsourcing company iQor Global Services.

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In Chicago, the REIT assumed ownership of a seven-building Class B industrial portfolio for $32.3 million. Spanning more than 1 million square feet near interstates 55, 80 and 294, the structures are currently 97 percent leased to 15 tenants. The lease sizes range from 52,000 square feet to 455,000 square feet, with a weighted average lease term of 8.6 years. Four anchor tenants—Ply Gem Building Products, A-Reliable Auto Parts & Wreckers, food packaging manufacturer Pactiv and baked goods supplier Aryzta—occupy half of the portfolio’s total square footage.

In Ohio, Plymouth spent $36.2 million to purchase a six-building light industrial and flex portfolio. The REIT funded the acquisition with $14.9 million in cash and the assumption of a $21.3 million mortgage loan. Plymouth secured four buildings in Cincinnati that total more than 374,000 square feet and are currently 93 percent leased and two properties in Columbus that combine for more than 217,000 square feet and are fully occupied. Tenants range from auto manufacturing to life insurance.

Plymouth’s plan ahead

Plymouth already owns several industrial properties in these states. In April 2018, the REIT purchased two warehouses totaling 270,000 square feet in Illinois for $15.7 million. Later that year in October, Plymouth bought a 400,000-square-foot industrial building in Cleveland for $27 million. White said his company is planning to increase the footprints of the markets they’re already in due to those markets’ solid growth and favorable dynamics.

“A lot of it has to do with the capital that comes into the REIT, but we have a very robust pipeline of potential acquisitions that we feel we can execute upon,” White told CPE. “As long as the capital comes into the REIT, we are quite confident we can continue executing on that acquisition strategy.”

The REIT is also interested in expanding into new Southeastern territories including Tampa and Orlando in Florida, Savannah, Ga., and St. Louis. White told CPE that Plymouth now owns nearly 15 million square footage in their portfolio and doesn’t plan on slowing down.