The industrial property is expandable to 1.3 million square feet and has all the attributes of an e-commerce fulfillment center.
ATLANTA—Mason Mill Distribution Center, a newly-constructed 340,000 square-foot class A industrial property in Atlanta's northeast submarket of Buford, GA, has traded hands. JLL Income Property Trust, an institutionally managed, daily valued perpetual life REIT, acquired the asset for $31 million.
The industrial property is fully leased to a publicly-traded global pharmaceutical distribution company through 2027. The tenant invested heavily in the property which is a mission critical facility servicing the southeast region.
“The fundamental tailwinds benefitting the industrial real estate sector are numerous, and we expect to continue to capture upside associated with this trend as long as it continues,” says Allan Swaringen, president and CEO of JLL Income Property Trust. “This investment brings our aggregate industrial allocation to nearly $560 million and nearly 6 million square feet, and represents 23% of the value of the overall JLL Income Property Trust portfolio.”
Mason Mill Distribution Center is a state-of-the-art distribution facility. It offers 32-foot ceiling height, ESFR sprinklers, LED lighting, a cross-dock design, 100% air conditioned and also features 376 parking spots.
Atlanta is the largest economy in the Southeast US and the region's hub for finance, commerce, communications, transportation, education and cultural activity. Atlanta has earned the reputation for being one of the most business-friendly cities in the US, with more than 75% of Fortune 1000 firms having operations in the metro area, and 15 of the Fortune 500 companies choosing Atlanta for their headquarters. The population of Atlanta is expected to grow by an average of 2.1% annually over the next five years, indicating the current growth rate among industrial tenants attracted to the local consumer base should continue.
The northeast submarket where Mason Mill Distribution Center is located is Atlanta's largest and has historically been the favorite of institutional investors and tenants. The close proximity to the Golden Triangle executive housing, access to skilled labor and the immediate interstate infrastructure provide an ideal location for higher employee count operations required by large, multinational tenants. This area has higher barriers to entry due to topography, few available developable land sites, and the increased resistance by municipalities to permit industrial development, which is curtailing new starts compared to other adjacent submarkets.
While JLL is snapping up industrial assets, others are disposing of them. Get the details of a big deal last week you may have missed. Beyond the Atlanta metro, industrial developers are finding plenty of opportunity.
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