COLUMBUS—As reported in GlobeSt.com, Hillwood, a Perot company, recently made several important acquisitions of industrial property in key Midwest markets. And it just acquired TradePort I, a soon-to-be completed distribution center totaling 1,020,255 square feet in Columbus.
It's the firm's fourth acquisition here, and that level of interest is not surprising. Although Columbus was once known primarily as an office center, the burgeoning need for distribution centers has made the metro area into one of the most prominent distribution corridors in the country.
“From a logistical standpoint, it's a great location,” Don Schoenheider, senior vice president and Midwest market leader, tells GlobeSt.com. “Our clients tell us that they can reach one-third of the country in a day's drive,” including the all-important East Coast. Furthermore, both Columbus and Central OH “are very aggressive when it comes to incentives,” such as tax abatements, and that makes the cost of occupancy very favorable when compared to other Midwest markets. Other investors have noticed.
“Pricing for good quality assets here has been very strong,” says Tom Fishman, Hillwood's executive vice president, acquisitions and dispositions.
Located on 78 acres at 3780 TradePort Crt., the facility sits less than one mile from the Norfolk Southern Intermodal yard and about two miles from the Rickenbacker International Airport. The site provides quick access to the I-270 interchange and Rte. 23.
Hillwood is now using its fourth investment vehicle and plans to invest around $1 billion on a variety of class A industrial facilities, Fishman adds. The company will remain flexible as it builds a portfolio, and purchase new properties still vacant, occupied buildings, or form joint ventures to develop from the ground up. It's a national effort, but the focus will stay on core cities, or those with growing populations and employment bases, such as Austin or Reno, NV.
TradePort I was built by NorthPoint Development, which Fishman considers another bonus due to its reputation for high-quality work. It has cross-dock configuration, 36' clear height, 185' truck courts, 102 dock doors, 400 car parks, 232 trailer spaces, LED lighting and ESFR sprinklers.
“The 36' clear height has almost become standard,” says Schoenheider, and that will make TradePort I very attractive to e-commerce users, many of whom need to stack product very high. Perhaps just as important for the rapidly expanding field of e-commerce, the site also includes additional acreage for up to 209,188 square feet of building expansion or trailer parking.
TradePort I complements “our recently-acquired, 450,000-square-foot Groveport 2 building,” he adds. “With our portfolio, we can provide multiple options for companies looking for class A distribution space in the Rickenbacker area.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
