Williams-Sonoma Leases 411,700-SF Facility
- Apr 11, 2011
April 8, 2011
By Barbra Murray, Contributing Editor
Kelly Boulevard Associates L.L.C. filled the empty tenant roster for its industrial property at 2973 Kelly Blvd. in Claremont, N.C., in one fell swoop. The business entity, a joint venture involving JER Partners and Fulcra Enterprises, got Williams-Sonoma Inc. to sign on the dotted line, thereby paving the way for a division of the home furnishings specialty retailer to settle into the entire 411,000-square-foot distribution warehouse.
Following a two-part development process, 2973 Kelly reached completion in 2003 at the hands of Collezione Europa USA Inc., and in 2008, JER and Fulcra snapped up the Class A asset for $9.5 million through bankruptcy proceedings. Located in Catawba County, the state-of-the-art facility sits approximately 45 miles northwest of Charlotte and provides a long list of coveted amenities that includes 36-foot clear ceiling heights, as well as a location just one mile from I-40 and within close proximity of three other major thoroughfares. The building will accommodate the warehousing, manufacturing, and distribution activities of Williams-Sonoma’s upholstered furniture division, Sutter Street Manufacturing.
“Williams-Sonoma recognizes the superior quality of the Kelly Boulevard warehouse and the benefits of being located in Catawba County,” Jim Smith, managing director of U.S. Funds at JER Partners, noted in a prepared statement. He added that the transaction is indicative of an improvement in the local industrial market. From the fourth quarter of 2009 to the fourth quarter of 2010, the vacancy rate for the overall Charlotte market dropped from 8 percent to 7.7 percent, according to a report by commercial real estates services firm CB Richard Ellis Inc.
The parties involved in the lease agreement have not disclosed its financial terms; however, according to the CBRE report, the average annual leasing rate for industrial properties in metropolitan Charlotte is $4.44 per square foot.
Commercial real estate services firm Cassidy Turley marketed 2973 Kelly on behalf of the joint venture and represented the team on the lease transaction.