The distribution facilities are located in the Memphis Distribution Center at Raines Road and Hickory Hill within the southeast industrial corridor. A spokesperson for ProLogis wouldn't comment on the price or the seller in the transaction.
"The Memphis market continues to serve as a primary distribution hub for the United States, making it an ideal location for ProLogis' expansion," says Mike Ruen, vice president for ProLogis. "This type of acquisition is in line with our overall strategy to provide our customers with greater flexibility in a major market situated at the crossroads of several class-I rail providers, interstate systems and the Mississippi River.
Tenants occupying space in the Memphis facilities include Cummins, MenLo Logistics, Hewlett Packard, Michel Distribution, Kawneer and Rhodes Furniture. Three of those companies, MenLo, HP and Kawneer, currently lease space from ProLogis in other markets.
"This acquisition also provides us the ability to enhance our relationships with a number of key global customers by strengthening our presence in one of the more active distribution markets in North America," Ruen adds.
The transaction gives ProLogis more than eight million sf of industrial space in the Southeast Memphis submarket and 115 acres to accommodate future development. Just yesterday, the firm announced more than four million sf in acquisitions in various markets.
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