"CHEP has a need to expand in the Atlanta market," Skinnell tells GlobeSt.com. "The need arose for expanded operations as well as additional storage. The company is growing year over year. The space was available right next door, so it simply made sense," he says of the deal.
The company uses the Riverview Distribution Center and its additional 89 warehouses throughout the US to provide pallets to distribution and logistics supply chains for the movement and transport of product. CHEP provides full service for the pallets, which includes repair and recycling services. Supply chains the company services include Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM.
"With all the negative news about the economy, it's positive to see that a company that makes pallets is renewing and expanding their lease," says Dave Watson of Grubb & Ellis, who represented Weingarten in the transaction along with Darren Ross and Nick Faber. "This is a possible sign of good things to come," says Watson. Equis Corp. represented CHEP in the deal.
The 265,200-sf Riverview Distribution Center building is now 100% occupied. The building is located in the I-20 West submarket of Atlanta, which has the lowest vacancy rate in Atlanta at 3.4% and average asking rents of $2 per sf, according to a Grubb & Ellis second quarter report.
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