ProLogis Trust seeks global domination Denver-based ProLogis has signed a 15-year lease for a build-to-suit in Northamton, United Kingdom, and plans to develop more than 1 million sq. ft. of industrial space in Southern.
In Torrance, Calif., ProLogis will develop ProLogis Park Torrance, a 49-acre distribution/warehouse park. The company plans to develop four buildings ranging in size from 100,000 sq. ft. to 670,000 sq. ft. that are divisible by 40,000 sq. ft. The largest facility will have access to the Burlington Northern/Santa Fe rail line. ProLogis expects to complete construction of Park Torrance in early 2001.
In the United Kingdom, ProLogis has signed New Wave Logistics (UK) Ltd., a subsidiary of Japan's Group NYK, to a 15-year lease for 160,000 sq. ft. at Grange Park in Northampton. The development is ProLogis' first at Grange Park.
Keeping it in Conyers and other Atlanta developments Atlanta's suburban industrial scene continues to hum, with a 300,000 sq. ft. lease renewal in Conyers, an eastern suburb. In Gwinnett and Douglas counties, locally based Industrial Developments International (IDI) has lined up sales and build-to-suits totaling 500,000 sq. ft..
New York-based Julien J. Studley's Atlanta office represented locally based Vantage Products Corp. in its 300,000 sq. ft. lease renewal with landlord Chicago-based First Industrial Realty Trust. Vantage signed a 10-year lease and will manufacture and distribute building and funeral products from its Conyers location.
In Atlanta's Northeast submarket, IDI sold a 303,000 sq. ft. building to West Point, Ga.-based ITC^DeltaCom for $10.5 million, according to local reports. Locally based contractor Batson-Cook Co. has been awarded the $70 million contract to convert the building into a headquarters and web hosting facility for e^DeltaCom, a subsidiary of ITC^DeltaCom.
On the other side of metro Atlanta in Douglas County, IDI is developing a 250,000 sq. ft. build-to-suit at Westfork industrial park for Cheswick, Pa.-based HubOne Logistics. HubOne will occupy the building upon its November completion. The local office of Northbrook, Ill.-based Grubb & Ellis represented HubOne.
L&B, Grubb & Ellis and Liberty: more MidwestDallas-based L&B Realty Advisors Inc. has acquired a suburban Indianapolis industrial building on behalf of a client, and Grubb & Ellis has arranged a lease between Auburn Hills, Mich.-based LDM Technologies and Malvern, Pa.-based Liberty Property Trust in suburban Detroit.
L&B acquired a 480,000 sq. ft. distribution center in Pendleton, Ind., from First Industrial for an undisclosed amount. Completed in January, the building is fully leased to Nashville, Tenn.-based Tractor Supply Co.
In Romulus, Mich., the Detroit office of Grubb & Ellis represented both LDM and Liberty in LDM's lease of 248,600 sq. ft. of manufacturing space.
Duke-Weeks, First Industrial shake up Dallas Metroplex First Industrial Realty Trust plans to enter Dallas in a big way, while Indianapolis-based Duke-Weeks Realty Corp. will add 2.1 million sq. ft. to its suburban Dallas holdings.
First Industrial will develop four R&D/flex buildings on 18 acres at Addison Tech Center. The entire project will total 226,000 sq. ft., and should be completed by the first quarter of 2001. The buildings will be designed to accommodate tenants from 3,700 sq. ft. to 102,000 sq. ft.
First Industrial plans to invest $250 million to $300 million in Dallas/Ft. Worth, according to Tom Bisartz, senior vice president of First Industrial Development Services.
In Coppell, Texas, Duke-Weeks will build eight buildings totaling 2.1 million sq. ft. near the Dallas/Ft. Worth International Airport. The company already owns six buildings in the Coppell area that are almost fully leased. With the new development, Duke-Weeks will own, manage or have more than 2.6 million sq. ft. under development in the Dallas area.
Just how much distribution space does The Gap need? Following plans for a 1.2 million distribution center in Columbus, Ohio, earlier this year, San Francisco-based Gap Inc. has leased 525,000 sq. ft. in IDI's Park West International in Cincinnati. Gap will occupy the building this summer and use it as a nationwide distribution center for Gap's Old Navy Outlet stores. Park West is adjacent to Interstate 275, two miles west of Cincinnati/Northern Kentucky International Airport.
New Jersey en fuego with new development and transactions New Jersey's industrial market remains one of the nation's strongest, a hotbed of absorption and acquisitions. Leading the way, The Advance Group, Bedminster, N.J., has acquired an 800,000 sq. ft. flex park from locally based Edmar Corp. for an undisclosed amount. The transaction was structured as an UPREIT contribution. Located at the confluence of Interstate 287 and New Jersey Routes 22 and 28, the park is 98% leased.
In Seacaucus, N.J., locally based Hartz Mountain Industries Inc. will build a 338,850 sq. ft. distribution center for New York-based Lantis Eyewear Corp. The facility is expected to be completed in September 2001. New York-based Insignia/ESG represented Lantis Eyewear.
Southern California trifecta of acquisitions, absorption Los Angeles-based Kearny Real Estate Co. has purchased 55 acres in Temecula, Calif., as Southern California continues its torrid leasing and development velocity. An affiliate of Morgan Stanley Real Estate Funds, Kearny acquired 55 acres from a private, local owner for $7.5 million. Kearny is considering a number of industrial/flex development options for the site, which is located within the Westside Business Center.
In Fontana, Calif., the Los Angeles office of New York-based Cushman & Wakefield represented Pasadena, Calif.-based Avery Dennison Office Products Co. in the renewal of a 410,208 sq. ft. lease with San Francisco-based AMB Property LP.
In Orange County, Phoenix-based Opus West has leased more than 130,000 sq. ft. at Foothill Business Center in Foothill Ranch, Calif., bringing the three-building, 246,072 sq. ft. spec industrial development to 54% preleased.
Irvine, Calif.-based TriGem America has signed a five-year lease valued at $4 million for 100,643 sq. ft. Also, Irvine-based Nihon Kohden has signed a five-year lease valued at $1.3 million for 32,699 sq. ft. at Foothill Ranch. In the lease transactions, McKinney/Travers Realty Group and Cornish and Carey - both of Irvine - represented TriGem, while the local office of CB Richard Ellis represented Nihon Kohden. CB Richard Ellis and the Irvine office of Providence Realty represented Opus West.
Construction of Foothill Ranch began in January with completion scheduled for this month.
On the acquisition/disposition front, Sylmar, Calif.-based Desert Sierra Properties has acquired a 127,000 sq. ft. concrete tilt-up building from Santa Monica, Calif.-based Ralston Investments for $7 million. Van Nuys, Calif.-based Delphi Business Properties represented both parties in the transaction. The building is 50% occupied.
Abbott Labs has remedy for Prime Group Abbott Park, Ill.-based Abbott Laboratories Inc. has leased a 242,000 sq. ft. building in Libertyville, Ill., from Chicago-based Prime Group Realty Trust. Oakbrook Terrace, Ill.-based NAI Hiffman represented Prime Group in the lease of the spec building.
inswanger brings home North Carolina, Virginia deals Philadelphia-based Binswanger has arranged three industrial transactions, two in North Carolina and one in Danville, Va. In the Danville transaction, Binswanger represented both buyer and seller. Hagerstown, Md.-based C.M. Offray & Son sold its 301,200 sq. ft. industrial building to locally based Dan River Inc. for $4.3 million.
In Dunn, N.C., Binswanger also represented both buyer and seller in Chicago-based Sara Lee Corp.'s disposition of a 198,725 sq. ft. manufacturing/distribution center operated by Sara Lee subsidiary Champion Products. Locally based Godwin Manufacturing Inc. acquired the property for an undisclosed price, and plans to use it for its expansion needs.
In Wadesboro, N.C., Binswanger represented Norwood, Mass.-based Dawson Forte Cashmere in its sale of a 100,950 sq. ft. industrial building on 16.8 acres to Toronto-based Gentry Mills Inc. Sales price was not disclosed.
This month, we'll talk to Carl Panattoni, president and CEO of Sacramento, Calif.-based Panattoni Development Co. With 18.8 million sq. ft. under construction, Panattoni was the nation's leading industrial developer in 1999. Don't expect it to slow down any time soon.
NREI: How do you attract top real estate talent to Panattoni?
Panattoni: The growth and recognition of the company on a national basis has obviously had a positive effect on generating initial interest. After that, we are absolutely driven by personal integrity, and I think that we do a very good job of communicating its importance in our culture. We also have a flexible structure that allows for entrepreneurial types to make their own future. We are a company that has not defined its market boundary or market share, and many see opportunity in that fact alone. To my knowledge, we have never lost a single partner or project manager to a competitor.
NREI: How do you manage the explosive growth of Panattoni?
Panattoni: Throughout this incredible growth period we have really tried to maintain our focus at the ground level. To me, the performance of the individual project and the local partner responsible for that project will ultimately dictate the condition of the company as a whole. However with our current size, this issue has and will continue to evolve.
Today, the volumes are so great (10 million-plus sq. ft. of starts in 2000 through six months), that we have no choice but to direct more attention on global management information systems and methods of efficient standardization. These new systems allow for consistency and management control in evaluating markets, projects and talent. However, we must be cautious as to how this impacts our ground-level performance. Our strength is the entrepreneurial decision-making process and the ability of our local partners to make a deal. We must be careful not to lose that competitive advantage. In that regard, we must be willing to change quickly.
NREI: Any new markets in 2000? What are some of the factors in choosing which markets to enter?
Panattoni: Portland, Ore., is the most recent new market for us in 2000, and it has been very successful to date. We have a strong team in place, and the opportunities are coming in faster than anticipated.
Factors in choosing a new market involve all of the classic real estate analysis issues regarding supply and demand constraints, entitlement issues, land and labor availability, and regional construction costs. We are also very careful about large, privately controlled landholders who may also awake to provide unforeseen competition on a below-market cost basis.
The other factor, which may be as important as all of the above factors, is talent. We must have the right team in place before we implement or act on our economic assumptions.
Finally, many of our new markets have been driven by our tenant base in that they have been satisfied with our performance in one market and they would like us to fulfill a requirement in a new one. This is a great way to jumpstart a new market.