Author: Sarah

National Industrial Service Facility Portfolio Acquisition Financed with $61 Million Loan

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JLL Capital Markets has arranged $61 million in acquisition financing for an industrial portfolio comprising nearly two-dozen last-mile, cross-dock truck terminals and transload properties across 17 key markets in the Southeast, Mid-Atlantic, New England and Central U.S.

JLL worked on behalf of the borrower, Biynah Industrial Partners, to source the acquisition loan.

The portfolio is 93% leased to 18 tenants with an average tenure of nearly 17 years and substantial investment-grade in-place tenancy. The portfolio crosses various regions with assets in the Southeast, Mid-Atlantic, New England and Central U.S.

The portfolio provides end-to-end logistics solutions for today’s supply chain demands. These facilities represent mission-critical freight distribution transfer points, facilitating the flow of goods at the last stage of the supply chain. Each site offers optimal solutions for facility location, facility size, proximity to major infrastructure, truck court sizing, auto parking and other special use considerations.

This portfolio highlights the growing demand for Industrial Service Facilities (“ISF”), a rapidly growing multi-billion asset class that is suddenly on the radar of institutional investors. Such last-mile, cross-dock truck terminals and transload properties are increasingly driving investor attention due to their critical role in the movement of goods amidst supply chain backlogs.

The JLL Capital Markets team that represented the borrower was led by Managing Director Matthew Schoenfeldt and Director Lucas Borges.

Point Acquisitions Closes On Record-Breaking Self-Storage Deal

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Point Acquisitions and Jesse Shemesh are pleased to announce that the commercial real estate investment company has closed on one of the largest single site self storage properties in the country through their proprietary platform: 18975 Marbach Lane in San Antonio, Texas. This property is located right off I-35 in San Antonio heading towards Austin, a huge growth market with excellent demographics and population increase. The property sits on 65+ acres and comprises 700 storage units over 362,000 square feet. The ability for 20 acres of expansion will one day make it the largest self storage site in the country.

“According to Costar, this deal is a top 30 site on a square footage basis. With 20 acres of expansion in the works, it will make it the largest self storage site in the entire country. We are pleased with the growth of our burgeoning direct to seller platform to take down a deal of this size and complexity in a super competitive market of self storage properties, and in the state of Texas. We were happy to see the options our company provided to the seller were more favorable compared to the traditional big shop brokerages for a deal of this size.”

The firm sources organic deal flow to limit the fees usually found with commercial real estate brokers to assure a win/win environment for sellers and investors. Selling commercial property using the Point Acquisitions platform is convenient and simple. Click to read more at www.globenewswire.com.

Alliance Industrial Co. Breaks Ground on 1.4M-Square-foot Kyle/35 Logistics Park

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Leadership for the city of Kyle, Hays County, the Kyle Economic Development Department and Alliance Industrial Co. held a groundbreaking ceremony June 22 for the new 1.4 million-square-foot industrial park called Kyle/35 Logistics Park at 24801 I-35, Kyle.

A Chapter 380 performance agreement was approved between the city and Alliance, an industrial development and investment company, following an executive session of the City Council on June 7.

The Hays County Commissioners Court also approved a performance agreement at a meeting June 7.

“We recognized over the last two to three years that there was a void in warehouse and logistics facilities, particularly in this region,” Alliance Managing Director Chad Parrish said. “This property that we’re standing on today, which closed in December 2021, is our first venture into the space, and it remains today our largest and probably one of our most exciting ventures.” Click to read more at www.communityimpact.com.

Sky-High Rental Prices Surpass Pre-Pandemic Levels by More Than 25%

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The pandemic fueled a meteoric rise in rental prices, and a severe shortage of supply isn’t helping. The nation’s median rental price hit its latest new high of $1,849 per month in May, representing a 26.6% increase since 2019 before the pandemic began, according to the Realtor.com monthly rental report released today.

A key factor driving the ongoing rent surge is a lack of supply, as rental vacancy rates, which were already trending lower, have taken a sharp dive during the pandemic. These trends are magnified in the biggest cities that tend to attract younger residents, many of whom are in the early stages of their careers and looking for the flexibility in their living situations.

“We do not have enough housing, and increased costs are a concern for all, including the 40 million Americans who choose to rent,” said Bob Pinnegar, president and CEO of the National Apartment Association. “The white-hot housing market has further fueled existing supply shortages and increased housing costs as renters stay in apartments longer and expenses tied directly to property values — like taxes and insurance — skyrocket.” Click to read more at www.forbes.com.

Self Storage Continues to Flourish After Pandemic-Induced Surge

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Self-storage has long exemplified its resilience and right now is no different. The industry is considered by experts a solid investment, and one that retains its value, even when faced with economic variability.

The industry is doing better than ever. But like the rest of the industrial market, there aren’t enough existing facilities in Illinois to satisfy the steadily increasing demand, though with the number of projects under construction in both in and outside of larger metros like Chicago, the imbalance should be remedied soon.

What makes it so highly demanded? It comes down to a few things, according to Steven Weinstock, First Vice President / Regional Manager / National Director, Self-Storage Division and Land and Redevelopment Division at Marcus & Millichap.

It is first important to separate self-storage facilities into two categories: nonclimate controlled and climate-controlled. Nonclimate controlled are traditional, single-story buildings, only separated from outside by the units’ garage-like doors. Climate-controlled facilities, by opposition, are enclosed and preferable in that users don’t have to worry about goods being ruined from exposure to excessive heat or rain fluctuations.

Individuals are the primary users of self-storage, utilizing space to not only preserve items they don’t use, but to store seasonal items, like kayaks and skis, that must remain accessible without occupying space in the home. In settings where living space is extra tight (Chicago, for example) people also utilize a climate-controlled space as an extended closet, swapping out clothing every few months.

Businesses, like Amazon and FedEx, also rent space as general extended storage, as well as storage for inventory on a case-by-case basis.

Because storage units are rented on a month-to-month basis, rents can be adjusted quickly, as is the case with hotels and multifamily buildings — just one of the reasons for their gradual, but steady recovery. And users? Weinstock said they prefer the comparatively low monthly price to the costly alternative of renting a bigger home, especially in today’s inflationary market.

“The ongoing increases in the cost of housing makes the decision to externally store an easier one,” Weinstock said. “Most users would rather pay $60 per month for a 5×10 unit, as opposed to $250 per square foot for additional space in a condo or apartment. The choice can be rationalized from both a financial perspective and one of convenience, with the number of facilities both urban and suburban.”

Self-storage has also advanced in terms of technology, and most newly constructed facilities include perks like online signup, contactless/keyless entry and advanced security.

The industry continues to display its resiliency throughout uncertain times and it has proven somewhat recession-proof given today’s market rates. Despite the low supply caused by the pause in development the last few years, developers have hit the ground running and there are many facilities scheduled for and currently being constructed throughout Illinois and the rest of the U.S., though this will impact prices.

“The pandemic changed the nature of self storage,” Weinstock explained. “More people are seeing it as a favorable alternative and the new technology makes it easy to use.”

Stream Realty Partners and Greystar Kick off Construction on Phase 2 of Whisper 35, a 500,000-Square-Foot, Class A Industrial Development Along Booming IH-35 Corridor

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Austin, TX – June 22, 2022 – Greystar Real Estate Partners, LLC (“Greystar”), a global leader in the investment, development, and management of high-quality rental housing properties and adjacent sectors, including logistics and life sciences, recently broke ground on Building 2 of its 500,000-square-foot, Class A industrial development along the flourishing Interstate 35 corridor in San Marcos.

Phase 1 consists of Buildings 1 and 2 totaling 180,000 square feet. Building 1 was completed in 2021 and is now fully leased. Building 2 includes one 90,025-square-foot building that is expected to deliver in the fourth quarter of 2022. Phase 2 contains Buildings 3-5 totaling 314,938 square feet of industrial space. It is expected to deliver in the third quarter of 2023.

Located in rapidly growing Hays County, Whisper 35 is a state-of-the-art, multi-phase development offering a unique opportunity to serve Austin, San Antonio, and everything in between. Dubbed the Texas Innovation Corridor, the greater San Marcos area is evolving as one of the most promising regions in the nation. It is increasingly being recognized by the national media and is home to rapid growth in several industries, including aerospace, aviation, security and defense; business services and support; regional distribution; and destination attractions.

Whisper 35 is located within proximity to IH-35 and is conveniently accessible via the 130 and 45 state highway toll roads. The development is 25 miles from Austin and 55 miles from San Antonio. It’s 20 minutes from the new Tesla factory and within a 10-mile radius of two Amazon distribution facilities totaling over 1.6M square feet.

The development team includes Greystar and RC Page serving as general contractor. Greystar has hired Stream Realty Partners to lease and manage the properties. The leasing team includes Managing Director and Partner Sam Owen, Senior Vice President Adam Green, and Vice President Mitchell Becker.

“With a soaring population, affordable housing, and strong labor metrics, San Marcos presents an incredible opportunity for industrial tenants to serve both Austin and San Antonio and everything in between,” Owen said. “As rental rates continue to increase citywide and new

development projects in Buda and Kyle prelease at a record pace, Whisper 35 offers an excellent solution to tenants seeking modern industrial buildings.”

About Stream Realty Partners

Stream Realty Partners is a full-service commercial real estate firm with integrated offerings in leasing, property management, tenant representation, development, construction management, investment sales, and investment management services. Headquartered in Dallas, Stream is dedicated to sourcing acquisition and development opportunities for the firm and its clients. Since 1996, the company has grown to a staff of more than 1,100 professionals with offices in Atlanta, Austin, the Carolinas, Chicago, Dallas, Denver, Fort Worth, Houston, Greater Los Angeles, Nashville, Northern Virginia, Phoenix, San Antonio, and Washington, D.C. Stream completes more than $5.8 billion in real estate transactions annually and is an active investor and developer across the nation. Visit www.streamrealty.com.

About Greystar

Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties and adjacent sectors, including logistics and life sciences globally. Headquartered in Charleston, South Carolina, Greystar manages and operates over $221 billion of real estate in 224 markets globally including offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages over 768,000 units/beds, and has a robust institutional investment management platform with more than $58.2 billion of assets under management, including over $24 billion of development assets. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.