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Home Depot Eyeing Late Spring Occupancy of 1M-SF Facility

CORSICANA, TX-With the $22-million sale closed, Home Depot signs a five-year lease with a 15-year renewal with the buyer, Equity Industrial Partners. The deal for the 1.45-million-sf facility is sweetened with tax breaks on improvements and inventory.

By Connie Gore | Updated on March 29, 2005

CORSICANA, TX-A Needham, MA industrial investment group has bought a 1.45-million-sf warehouse for $22 million, setting up the play with a five-year lease and 15-year renewal option with Home Depot Inc. The shuttered Kmart distribution center has traded with a seven-year abatement on improvements and 10-year break on inventory.

Equity Industrial Partners Corp. was one of five investment groups in recent months to place an offer on the 139-acre property at 2200 S. Business 45 in Corsicana, 84 miles south of Fort Worth. A group of Kmart shareholders pulled the asset from bankruptcy in July 2003, hiring J. Holmes Davis IV, senior vice president in Dallas for the Philadelphia-based Binswanger/CBB to market it. Davis tells GlobeSt.com that the sellers fully expected it would take at least a year to find a buyer. The seller of record, RMG, is affiliated with the McLean, VA-headquartered Reilly Mortgage Group.

Davis says eight would-be buyers surfaced during the eight months that the asset was on the market, representing all sizes and types of prospects. Equity Residential paid just $4.5 million less than the asking price. The City of Corsicana sweetened the deal with a 75% break for seven years on any improvements to the property, assessed at $7 million, and a 30% abatement on inventory for a decade, Daryl Schliem, CEO of the city’s economic development corporation.

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