Area brokers tell GlobeSt.com the deal is the largest of its kind in the metro market in the third quarter. The site is off Interstate 75 and State Route 155 in Henry County.
The lease brings the 577,500-sf cross-dock distribution facility at 100 Interstate South Dr. to 75% occupancy and adds a third corporate tenant to the park. Genco and Wal-Mart also lease premises there.
H. Dayne Pryor, operating officer of park owner Panattoni Development Co. LLC of Sacramento, CA, declined to disclose the length or value of the transaction. But he tells GlobeSt.com the lease is "in excess of five years" and its value is "less than $10 million."
Area brokers tell GlobeSt.com average asking base rents for distribution centers are $4 per sf to $6 per sf. Pryor wouldn't disclose the park's average base rents because they "vary by deal size and tenant improvement requirements." He says the 100 Interstate South Dr. building has 440,000 sf left to lease, "the only remaining space we have available in this park."
Pryor says the 577,500-sf building could be enlarged to up to one million sf, "but there are no plans to expand until the balance of the building is leased." He credits the leasing efforts of CB Richard Ellis Inc. brokers Blaine Kelly, vice president, and Beth McClurg, director, with cementing the deal. Kelly and McClurg negotiated for IFCO.
"This strategic placement (of IFCO in the park) will enhance the bottom-line profits for IFCO in a short period of time with the consolidation and the relocation of this facility from two facilities in two other states," Pryor says. He represented his company in the lease transaction.
IFCO plans to have its space on line by year end. "It will act as IFCO Systems' main Southeastern washing depot for recycling our reusable plastic containers and generate between 80 and 100 jobs for the local community," says David Beecher, IFCO Systems' finance director.
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