CRG, the real estate development and investment arm of Chicago-based Clayco, formally announced the sale of a 1,002,150-square-foot warehouse at The Cubes at Bridgeport industrial park in Coweta County, Georgia.
The sale to KKR closed on Sept. 25 and was brokered by JLL Capital Markets. The building, which is fully leased, is the first completed development on the 500-acre mega site. The park features up to 8.5 million square feet of potential industrial space strategically located on the I-85 interchange at Exit 41.
“The sale validates the strength of our location,” said Mike Demperio, Executive Vice President, Partner and Southeast Industrial Lead for CRG. “The I-85 South corridor is a destination for premier institutional tenants, and we’ll pursue more opportunities here in the very short term.”
The warehouse was a joint venture partnership between CRG, U.S Logistics Fund 1 and Pope & Land. CRG was the developer, while Clayco served as general contractor and subsidiary Lamar Johnson Collaborative was architect for the project.
“The Cubes at Bridgeport is another example of the strength of the CRG platform” said Shawn Clark, President at CRG. “Our team negotiated complex easement agreements and delivered substantial infrastructure, including a CSX flyover bridge, that set the stage for one of the best locations in the I-85 submarket of Atlanta. This project validified the park, and we look forward to serving more clients in the area.”
The Cubes at Bridgeport also features a 562,650-square-foot speculative facility sitting on 35.6 acres adjacent to the project just sold. The new development is planned to break ground by the end of the year and with anticipated completion in the second quarter of 2021.
The 1,002,150-square-foot facility, which was developed on a speculative basis, is located at 280 Bridgeport Parkway in Newnan, Georgia. The sale is the second recent industrial transaction for CRG, which closed KKR’s purchase of a 350,000 speculative warehouse in Portland on July 17.
According to JLL Research, recent industrial market fundamentals indicate continued demand for Atlanta moving forward, with more than 100 known tenants surveying the market, led by retailers and logistics firms, with the majority of activity featuring new deals versus renewals.
“The United States industrial market isn’t slowing down,” said Kevin Newell, Head of Industrial Capital Markets for CRG. “This sale actually outperformed our underwriting, and we continue to expect demand to surge due to the pandemic and continued changes in consumer habits. Our strategy is to be ready with next generation facilities located is vibrant areas like the I-85 South corridor.”
The building, whose shell was completed in November 2019, features 40-foot clear height, 620-feet deep cross loaded, 50-feet by 57-feet column spacing, as well as 60-foot speed bays.
“Nationally, we are seeing an all-time high in investor interest from all buyer groups for quality core industrial opportunities, which in turn is driving record pricing,” said John Huguenard, International Director and Head of Industrial Investment Sales Advisory for JLL. “This offering saw heavy interest from a variety of buyers around the globe.”
The JLL Capital Markets team that brokered the sale of the transaction on behalf of CRG was led by Huguenard, Britton Burdette, Matt Wirth and Dennis Mitchell. The new tenant is expected to create more than 500 jobs for the local area. JLL’s Agency Leasing team of Chris Tomasulo and Steve Grable led the leasing efforts for the project.
About CRG
CRG is a privately held real estate development firm that has developed more than 8,500 acres of land and delivered over 200 million square feet of commercial, industrial, institutional and multifamily assets exceeding $12 billion in value. CRG, headquartered in St. Louis, leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Columbus, Southern California and Philadelphia. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next generation users led to the creation of its industrial brand, The Cubes, and its multifamily brand, Chapter. For more information, visit CRG’s website at www.realcrg.com.
About The Cubes
The Cubes is a North American industrial brand owned and developed by CRG. The Cubes represents CRG’s philosophy of developing for the future and anticipating the enhanced needs of tomorrow’s modern industrial user. The Cubes are designed with an emphasis on sustainability, and implement state-of-the-art specifications, including maximum clear heights, dock doors and trailer storage to keep pace with the shift to consumer-centric logistic strategies. The Cubes are located on strategic sites that take into consideration both logistics and labor supply, always with the end user in mind.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
