Los Angeles - CBRE Group, Inc., has arranged the sale of a 1.2 million-square-foot industrial portfolio along the I-85 corridor in the Carolinas. The portfolio is comprised of four warehouse/distribution buildings: one located in Charlotte, NC; one in Greensboro, NC; and two in Greenville, SC. New York-based Gramercy Property Trust acquired the properties for $72.5 million. CBRE’s Patrick Gildea, Matt Smith, Anne Johnson, Bryan Crutcher, Trey Pennington, and Dodson Schenck represented the seller, Beacon Partners of Charlotte, NC.
The properties are currently 87% occupied and located directly along I-85, the region’s main east–west interchange. Anchor tenants include HD Supply, BMW Manufacturing, LeSaint Logistics, and XPO Logistics.
“In 2016, the Charlotte, Greensboro and Greenville-Spartanburg markets witnessed absorption of 3.4 million, 1.3 million, and 6.5 million square feet, respectively. Overall strong fundamentals combined with excellent locations along one of the nation’s most rapidly growing corridors made these properties an excellent investment,” said Patrick Gildea, Executive Vice President. “More than one-third of the portfolio will roll in the first year. Since comparable product is scarce in the market, the buyer will be able to substantially boost income by re-leasing to market rates the spaces that are current below market.”
The rise in e-commerce has resulted in a shipping boom along the I-85 Corridor. Nearly 50% of the country is accessible within a 12-hour drive from the properties. The two buildings in Greenville are located less than four miles from the South Carolina Inland Port, which opened in October 2013 and extended the Port of Charleston’s inland reach over 200 miles. Today, thousands of shippers and suppliers are accessing more than 95 million consumers within a one-day drive.