(To read more on the industrial market, click here.)
MEMPHIS-L&B Realty Advisors of Dallas has sold a five-building, 1.6-million-sf industrial portfolio here to TIAA-CREF. The 96%-leased portfolio is located within the Southpark development in the southeast part of the city. The purchase price has not been released by the parties involved and was not otherwise immediately available.
Located on the corner of Shelby Drive and Lamar near Interstate 55, Southpark was developed by IDI between 1992 and 1995 as it was becoming one of the distribution hubs serving the Eastern US. The park consists of 13 buildings totaling 4.3 million sf. The buildings TIAA-CREF acquired are: Building K, 474,000 sf; Building L, 178,750 sf; Building M, 111,250 sf; Building N, 442,184 sf; and Building O, 404,400 sf.
According to the seller, the buildings are occupied by "high-credit, publicly traded tenants." Other industry sources tell GlobeSt.com that tenants include Dollar Tree, SBC Communications, Eaton Electrical (a division of Cutlet Hammer), Cleo Wrap (a division of Gibson Greetings), and PFS Web (Priority Fulfillment Services).
Eaton, Cleo and PFS occupy their own buildings while the others are in multi-tenant buildings. The only vacancy in the portfolio is a 64,000-sf space in Building M.
Frank Fallon, Chris Riley and Brad Rodgers of CB Richard Ellis in Atlanta had the disposition assignment. They were assisted by Russ Westlake of locally based Weston Cos.
"As one of the distribution capitals of the Eastern US, Memphis industrial assets always present an attractive investment opportunity," says Fallon, executive vice president with CBRE. "As development costs continue to escalate, well-developed, well-located assets…will gain favor with institutional investors due to their favorable returns versus replacement cost and [their ability] to attract and retain tenants."
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