Plymouth REIT Nabs $11M Portfolio in ATL
- Jan 04, 2018
Plymouth Industrial REIT has acquired a three-property portfolio in metropolitan Atlanta. The company paid $11.4 million in cash for the assets, located in Conyers and Covington, Ga. Each of the mission critical facilities is occupied by a single tenant.
- DiversiTech, a supplier of HVAC components, occupies the building at 1665 S.W. Dogwood Drive in Conyers. The 198,000-square-foot distribution center was constructed in 1988 and occupies approximately nine acres. The property features four grade-level and 17 dock-high loading doors, as well as a 140-foot truck court.
- Bio-Lab, a chemical and cleaning products company, is the tenant at the adjacent building, located at 1715 S.W. Dogwood Drive, also in Conyers. Built in 1975 on around four acres of land, the property offers 100,000 square feet of space. It features one grade-level and 10 dock-high loading doors, a clear height of 22 feet and a 275-foot truck court.
- Clairon Metals Corp., a metal stamping company, occupies the third building, a 32,361-square-foot warehouse and distribution center located at 11236 Harland Drive in Covington.
Low vacancy rates, good exposure
The three tenants have long-term leases withstanding at the facilities. Plymouth REIT’s industrial portfolio acquisition establishes a stronger foothold for the company in the Atlanta metro, where it owns a fourth, 194,800-square-foot facility. All three recently-traded properties have immediate access to Interstate 20 and major distribution routes.
All three companies have other operations near the properties. DiversiTech is based in Duluth, Ga. and has another distribution center minutes away from the one on Dogwood Drive. Lawrenceville, Ga.-based Bio-Lab occupies another building on the same street, while Clairon Metals Corp.’s headquarters is also located in Covington, near the acquired property.
“We acquired these mission critical buildings, where two of the tenants have manufacturing facilities in close proximity, at well-below replacement cost and a combined weighted average lease term of over four years,” said Pendleton White Jr., president & CIO of Plymouth REIT, in a prepared statement. “With the I-20 East submarket possessing one of the lowest vacancy rates in Atlanta, as well as limited amount of new supply, we are confident these assets will be strong long-term investments.”
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