ATLANTA—In partnership with Kaiima USA Group, three industrial real estate veterans have formed Core5 Industrial Partners. The venture will focus on developing and acquiring class A industrial properties, beginning in Atlanta and with plans to expand to key logistics markets stateside over the next three years.
Kajima was formed with executives from its last industrial venture, IDI, which developed over 175 million square feet of class A properties over 25 years. IDI was sold in Oct. 2013.
Tim Gunter is president and CEO of Core5. Lisa Ward serves as senior vice president and managing director. Kajima Corporation, a 175-year-old Japanese company, owns Kajima USA. The company offers real estate development services, as well as architectural, engineering, and construction services through a network of companies in the US.
"The US market continues to offer significant opportunities for accretive development and we have considerable capital resources to finance deals that take advantage of attractive market conditions," Gunter tells GlobeSt.com. "We've been evaluating several markets and specific opportunities and our pipeline is robust going into 2016. We feel good about where we are going."
Core5 aims finance most deals on its balance sheet and to hold substantial equity commitment in the products it develops. The company also plans to co-invest with other financial partners to grow its platform nationally.
"We're in a position to have a very active year in 2016," Ward tells GlobeSt.com. "For 2016, Core5 has identified approximately 5 million square feet of anticipated development starts in Metro Atlanta and three additional key logistics markets. The future for Core5 looks very bright."
Core5's first project is the Core5 Logistics Center at Shugart Farms. The 873,800-square-foot state-of-the-art industrial facility is under construction in the Interstate 85 South/Airport market in Fairburn, GA. That's just south of Atlanta's city center less than 10 miles from Hartsfield Jackson International Airport.
The Airport Submarket has been the most active submarket in Metro Atlanta, landing several Fortune 500 companies for large-scale distribution and e-commerce fulfillment center over the past 12 months. With anticipated delivery in the third quarter of 2016, the industrial facility will offer 36-foot clear height, trailer and auto parking, access to key supply chain infrastructure and strong labor pool.
Atlanta's industrial market just keeps picking up momentum. Pauls Corporation recently grabbed five McDonough industrial assets.
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