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ATLANTA-LG Electronics, USA Inc. and ProLogis are extending their relationship with the electronics firm leasing another 612,000 sf from the industrial giant. The new lease gives LG Electronics distribution space at ProLogis Park Greenwoods in Henry County.
A ProLogis spokeswoman did not reveal the rental rate on the long-term lease; however, Colliers Spectrum Cauble reports that triple net rates average $3.16 per sf in South Atlanta's industrial market. Colliers Spectrum Cauble's just-released second quarter industrial report also calls this lease the largest deal in the second quarter.
Seth Kelly, Wit Truitt and Chip Watson with CB Richard Ellis represented LG Electronics. With the new lease, LG Electronics now occupies more than two million sf at ProLogis properties across the continent.
ProLogis Park Greenwood is located along Interstate 75, approximately 20 miles south of Atlanta's Hartsfield-Jackson International Airport. The park has easy access to Highway 155, Interstate 85 and the Florida Turnpike, and is less than five hours from the Port of Jacksonville. The park currently consists of two distribution centers; the first, totaling 1.25 million sf, is fully leased to Home Depot. LG Electronics leases space in the second facility, which is expandable by 484,000 sf. At full build-out the park will comprise seven distribution centers totaling more than 3.9 million sf of space.
"LG Electronics is an archetypal customer for ProLogis--a global leader in its industry with large-scale needs for distribution space and a strong strategic focus on supply chain management," Richard Strader, senior vice president and regional director of capital deployment for ProLogis, says in a statement. "We're extremely pleased to be expanding our relationship with LG through this new agreement, which is one of the largest industrial transactions in the Atlanta market over the past year, and look forward to serving as their southeast distribution facilities provider."
LG Electronics director of national distribution Jim Mason echoes Strader's remarks. "ProLogis is a trusted provider of distribution space for LG in key markets throughout the [US], and we're pleased to now be working with them in Atlanta," Mason adds. "Our new, strategically located distribution facility gives us the space we need to accommodate the growth of our business while providing us with a significant advantage in terms of logistics efficiency."
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