Sciele Pharma specializes in sales, marketing and development of branded prescription products focused on cardiovascular, diabetes, women's health and pediatrics. Skyline Southeast is a marketing firm that designs and produces display systems, signage and other advertising forms.
"The companies were drawn to Shiloh 400 by its location and building design, along with the ownership's excellent financial support to fulfill tenant occupancy requirements unique to their operations," says Joseph McGorrey, Crescent's vice president of development. The buildings feature highly finished tilt-up panels with brick and clerestory elements, along with large truck courts and 24-foot clearances.
Shiloh 400, at Georgia 400 and McFarland Road in suburban The Meadows, is a joint venture between Charlotte, NC-based Crescent Resources LLC and Dallas-based Cobalt Capital Partners, with construction financing provided by Birmingham, AL-based Regions Bank. Cobalt Capital tapped into a $410-million REIT to fund the $20-million Shiloh 400 project last spring among several industrial speculative projects totaling five million square feet in Georgia, Minnesota and Texas.
The Atlanta industrial market saw more than 15 million square feet of leasing activity last year, though those numbers declined each quarter as the economy slowed down, according to Cushman & Wakefield research. A total of 6.5 million square feet of new space was delivered throughout the year, yet only 5% of that amount, or 356,000 square feet, was under construction at the start of 2009.
During the ongoing recession, brokers believe demand for new space will not emerge until at least the second half of this year. "It is widely anticipated that 2009 should yield greater clarity, liquidity and eventual stability in the commercial real estate market," Samir Idris, senior associate with Cushman & Wakefield, stated in a research report.
The Georgia 400 corridor, with 22.3 million square feet of inventory, has one of the lowest vacancy rates among Atlanta's industrial submarkets at 7.1%, Cushman & Wakefield figures show. Vacancy for the entire metropolitan area, totaling 496.5 million square feet, measures 9.1%.
Pat Murphy of CB Richard Ellis represented Shiloh 400 in lease negotiations. Wit Truitt and Chip Watson of CBRE represented Sciele Pharma, while Bucky Winfield and George Smeltzer of Richard Bowers & Co. represented Skyline Southeast.
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