Done Deals: Aug 14, 2020

Friday, August 14, 2020

JLL Capital Markets Brokers $43 Million Sale of 811,000-SF, Bed Bath & Beyond-Leased Distribution Center in Northeast Georgia

This 811,000-square-foot distribution center at 860 John B. Brooks Road is leased to Bed Bath & Beyond in the northeast Georgia community of Pendergrass.

Alex Sharrin

ATLANTA, GA – JLL Capital Markets announced it has closed the $43.9 million sale of an 811,000-square-foot distribution center at 860 John B. Brooks Rd. leased to Bed Bath & Beyond in the northeast Georgia community of Pendergrass.

JLL worked on behalf of the seller, Oak Street Real Estate Capital, LLC, while an unnamed institutional investment group purchased the asset.

The distribution center is situated on 62 acres along Interstate 85, which is the industrial backbone of the southeastern United States.

It is less than 70 miles from Hartsfield-Jackson Atlanta International Airport, the busiest airport in the world. The asset features tilt-up construction, 32-foot clear heights and a cross-dock configuration. It is a mission-critical distribution hub for Bed Bath & Beyond.

Britton Burdette

The JLL Capital Markets team representing the seller was led by Alex Sharrin, Britton Burdette, Brian Shanfeld, Matt Wirth and Dennis Mitchell.

“Industrial-oriented net-lease real estate has seen a much more muted sensitivity to the overall volatility in the commercial real estate marketplace,” Sharrin said. “Bed Bath & Beyond’s e-commerce and distribution center in Pendergrass sits at the nexus of strong intrinsic real estate value and credit, providing for a stable investment opportunity.”

“The buyer was attracted to the mission-critical operation, which servers the growing e-commerce business segment of the tenant along with the strong location and building attributes,” Burdette added.

Brian Shanfeld

“This transaction highlights the continued growth in demand for quality industrial assets in the Atlanta market.”

About Oak Street Real Estate Capital, LLC

Oak Street Real Estate Capital, LLC (“Oak Street”) is a real estate investment firm focused on acquiring properties net-leased to investment grade rated tenants.

Oak Street specializes in providing unique and flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

Matt Wirth

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization.

The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management.

Dennis Mitchell

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, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020.

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, please visit jll.com.

CONTACT:

Kimberly Steele

Senior Associate, Public Relations

JLL Capital Markets

9 Greenway Plaza, Suite 700

Houston, TX 77046

T +1 713 852 3420

M +1 832 244 9994

Kimberly.Steele@am.jll.com

us.jll.com/capitalmarkets

Mark Sonnenberg

PHOENIX, AZ – JLL Capital Markets announced it has arranged a $16.12 million refinancing for a seven-building light distribution and manufacturing portfolio totaling 274,429 square feet in Phoenix, Arizona.

JLL worked on behalf of the borrower, a partnership between Phoenix-based Bird Dog Industrial, HPI Real Estate Services and Investment and Long Wharf Capital, to place the five-year, fixed-rate, non-recourse loan with a correspondent life insurance company. Loan proceeds will be used to take out the existing credit facility.

The Phoenix light industrial portfolio is situated on 16.12 acres at 10950 W. Northview Ave. in Glendale; 235 E. Pima St. in Phoenix; and 481 N. Dean Ave, 5740 W. Oakland St. and 5753, 5763 and 5773 W. Erie Streets in Chandler.

Casey Wenzel

The properties are strategically positioned in in-fill industrial submarkets throughout Phoenix with a strong employment base and access to major transportation lanes.

The portfolio is 54.6% leased to three national tenants. The borrower is in the final stage of completing value-add improvements totaling approximately $1.725 million across the portfolio.

“We purchased each of these properties individually based on their common value-add attributes, including deferred improvements, existing vacancy and below-market rents,” said Mark Sonnenberg, President of Bird Dog Industrial. “After completing significant improvements, we’re excited to be re-introducing these properties to the leasing market.”

The JLL Capital Markets debt placement team representing the borrower was led by Managing Director Casey Wenzel, Senior Managing Directors Aldon Cole and Jeremy Womack and Analyst Alastair Barnes.

Aldon Cole

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

For more news, videos and research resources on JLL, please visit our newsroom.

About Bird Dog Industrial

Bird Dog industrial is a Phoenix-based entrepreneurial real estate investment firm that acquires, repositions and develops industrial properties with a focus on maximizing investor returns through creative and value-add opportunities.

Jeremy Womack

About HPI Real Estate Services and Investment

HPI is a full-service commercial real estate firm with over 28 years of experience developing, managing and investing in commercial real estate.

This 360-degree perspective gives HPI the expertise to maximize investment value while navigating through any real estate challenge.

Backed by the best staff in the industry, HPI’s mission is to build trusting relationships with its clients through proven results, professional integrity and exceptional service.

About Long Wharf Capital

Long Wharf Capital LLC is a Boston-based private equity real estate manager focused exclusively on value-added investments in the U.S.

Alastair Barnes

Formed in 2011, the firm invests on behalf of institutional clients including pension funds, endowments, foundations, and family offices.

Long Wharf’s investment approach utilizes multiple value creation strategies to target opportunities across property sectors and U.S. markets.

Since Long Wharf’s first fund in 2012, the team has invested over $768 million of equity in more than 50 investments across the U.S. with a gross value of $2.6 billion.