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ATLANTA—Plymouth Industrial REIT has acquired a five-building, 924,036-square-foot industrial portfolio in Atlanta and Savannah for $34.7 million. The acquisition, which is projected to provide an initial yield of 7.6%, was funded with borrowings under the company's credit facilities.
Pendleton White Jr., Plymouth's president and chief investment officer, tells GlobeSt.com that the buildings mainly house distribution operations with some light manufacturing. The largest tenant is the Balta Group, a Belgian producer of carpets and rugs.
"These properties were right in our wheelhouse and fit us to a T," White says. "We will continue to focus on Class B properties, mostly in secondary markets."
Plymouth will continue to talk with sellers and brokers in search of properties in the Atlanta, Savannah and Jacksonville markets, White says.
Fully leased to four tenants with weighted average lease terms of approximately seven years, the portfolio is comprised of two buildings in the Northwest and I-20 East submarkets of Atlanta and three buildings in Savannah. The acquisition also includes approximately 39 acres of developable land in Atlanta.
White says Plymouth doesn't have definite plans for the 39 acres, but will look at it as an opportunity to expand existing buildings if tenants need more space.
"Extending our presence in Atlanta and finding the right entry point to the Savannah market have been priorities for us," White says. Atlanta's airport and Savannah's port are two of the biggest contributors to economic growth in both submarkets. Strong rent growth, historically low vacancy rates in these submarkets, an established tenancy and the ability to create future value with tenant renewals were also key factors in our underwriting."
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