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Industrial Real Estate CEO: 1st Round of Tariffs Impact "Minimal"

Larry Callahan, CEO, Pattillo Industrial Real Estate

A team of CoStar News reporters, led by Jacquelyn Ryan in Los Angeles, takes a look at the potential impact of President Trump's new tariffs on Chinese imports on America's booming industrial real estate market. The story starts and ends with commentary from Atlanta's own Larry Callahan, CEO of Pattillo Industrial Real Estate.

Click here to read the story.

COSCO Development (under Hong Kong flag) Passes Savannah's Historic District on way to Georgia Ports Garden City Terminal - May 2017

Right now, Callahan is not too worried about the impact of President Donald Trump’s posturing on trade.

"I do not believe that the first impact of tariffs (and retaliatory tariffs) has been fully priced into assets like industrial real estate," he said. "And I would argue that the impact of a first round of tariffs on the pricing of industrial real estate is minimal."

 

BREAKING: Huge Warehouse Deal is Home Run for Fulton County, Los Angeles Developer

ATLANTA (April 8, 2015) - A just-posted DRI filing seems to show that the mystery project at Majestic Logistics Center at the Fulton County airport is moving closer to revealing itself.

Majestic Realty Co.  of Los Angeles says it plans to develop 2.8 million square feet of industrial space at the park situated at 3945 Aviation Circle at the Fulton County Airport-Brown Field. Majestic will lease 341 acres for the development, according to the Development of Regional Impact filing.

This information jives with Bisnow Atlanta's year-old report that Majestic would lease about 300 acres from the county for  1 million-square-foot refrigerated warehouse for Kroger Co.

However, the location at "Charlie Brown" Field appears to be new info. Speaking of Charlie Brown the developer, his son Scott Brown is the project manager for Majestic on this huge deal, who some calle "Project Jasper." Had to happen.

We're hoping no one yanks this big football away from any one before its kicked through the goalposts.

Stay tuned (and check out the DRI filing below).

MetLife-Panattoni Tap JLL Atlanta to Lease Lambert Farms Logistics Park

ATLANTA (Oct. 28, 2014) - Atlanta's Southside continues to attract major industrial developments as demand for large-scale distribution centers and warehouses grows. The newest significant industrial park under construction is the 447-acre Lambert Farms Logistics Park in Henry County, developed by MetLife and Panattoni Development.

The development team has selected JLL Atlanta as the exclusive leasing agent for Lambert Farms. Here's the official press release from JLL Atlanta, one of The Wilbert Group's newest clients.

JLL Named Exclusive Leasing Agent for New Industrial Park in South Metro Atlanta

First phase of Lambert Farms Logistics Park, a MetLife-Panattoni development, set to open next year with completion of 750,000-square-foot spec building

ATLANTA, Oct. 28, 2014 - JLL’s Atlanta office today announced it was named exclusive leasing agent for Lambert Farms Logistics Park, a Class A, 447-acre industrial park being developed by MetLife Inc. and Panattoni Development Company, Inc. in Henry County, Georgia, approximately 25 miles south of downtown Atlanta.

Executive Vice President Wit Truitt, Senior Vice President Chris Tomasulo, Vice President Rodney Davidson and Associate Reed Davis will lead the JLL leasing team.

 “The Lambert Farms Logistics Park is perfectly poised to thrive for years to come,” Truitt said. “Large blocks of Class A industrial space already are in short supply in metro Atlanta, and as the economy improves and distribution activity picks up, the demand for these kinds of properties will only rise. This assignment represents a tremendous opportunity for our team.”

 Panattoni just broke ground on the master-planned industrial park’s first phase, which will consist of a 750,000-square-foot spec distribution center on 183 acres. The state-of-the-art building will feature 36-foot clear heights, abundant parking for tractor-trailers and cars to accommodate both e-commerce and traditional bulk tenants, and will be built to LEED standards. The building is slated to be delivered by July 2015.

 Site plans allow the spec building to expand to up to nearly 1.5 million square feet. Overall, Lambert Farms Logistics Park will be able to accommodate up to seven million square feet of total distribution space and individual buildings up to two million square feet in size. The industrial park sits on the east side of the intersection of I-75 and SR 155.

 “Panattoni has been an active developer in the Southeast with nine projects under construction totalling more than 5.8 million square feet,” said Dayne Pryor, Partner at Panattoni. “Nationwide, Panattoni is currently under construction on 39 projects totalling more than 16.5 million square feet.”

 “We are excited to have JLL as the exclusive leasing agent for Lambert Farms,” said Whitfield Hamilton, Partner at Panattoni. “We have a long, successful history with JLL, including currently pursuing about four million square feet of build-to-suit opportunities in Nashville, Miami, Memphis and Greenville, South Carolina.”

 For more news, videos and research resources on JLL, please visit JLL’s U.S. Media Center web page.

About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

About Panattoni Development Company

Panattoni Development Company Inc. is a privately held, full-service development company founded in 1986. The firm has completed in excess of 200 million square feet of commercial projects worldwide. PDC has developed industrial, office and flex facilities in 278 cities located in 29 states and nine countries. The firm is headquartered in California and maintains offices throughout the United States, Canada and Europe.

 

Contact:	Stephen Ursery
Phone:	+1-404-549-7150
Email:	[email protected]

Braves Developer Plans Mammoth Industrial Park at Metro Atlanta's Lone "Mega-Site"

ATLANTA (Oct. 1, 2014) - Looks like Cobb County-based mixed-use developer Pope & Land a key member of the Braves development team, is jumping into the industrial real estate market - in a huge way.

Bridgeport Industrial, planned for 1,064 acres on U.S. 27/29 in Coweta County would become one of metro Atlanta's largest industrial parks, with more than 8 million square feet, according to the just-filed DRI. The site is metro Atlanta's only "Mega-Site," according to Pope & Land.

The development would be completed in 2018 abd include training space. (In other words, Pope & Land might have a large manufacurer in mind for the site already.)

Pope & Land Enterprises affiliate P&L Bridgeport I, L.P. and P&L Bridgeport II, L.P. (yes, the names are misspelled in the DRI filing) have submitted plans to develop Bridgeport Industrial that would comprise more than 7 million square feet of manufacturing space, 294,000 square feet of research-and-design space, 736,000 square feet of wahouse and 100,000 square feet office space.

P&L Bridgeport has asked that the property be rezoned to accommodate its industrial project.

In its home county, Pope & Land is the key member of the development team selected by the Atlanta Braves to create a mixed-use village around the team's planned new stadium.

Chick-fil-A Leases Entire Industrial Building Near Atlanta Airport

ATLANTA (Aug. 29. 2014) - Chick-fil-A has gobbled up an entire distribution building across the street from its College Park heaquarters. 

The chain that made chicken sandwiches famous agreed to lease the 111,252-square-foot build-to-suit industrial facility under construction at Airport West Distribution Center near Atlanta’s Hartsfield International Airport.

The lease was announced today by Lincoln Property Co., which is developing the building that will open early next year.

The end game is great: A very successful Atlanta company is helping fuel success in Atlsnta's commercial real estate industry.

Here's more on this significant commercial real estate deal. The Wilbert Group represents LPC Southeast, and we issued this release.

Chick-fil-A Signs Long-Term Lease for 111,252-Square-Foot Industrial Facility Near Atlanta Airport

Lincoln Property Company Southeast is developing the facility, which will be complete in January 

ATLANTA (Aug. 29, 2014) – Lincoln Property Company Southeast (Lincoln) is developing a 111,252-square-foot industrial facility at Airport West Distribution Center near Atlanta’s Hartsfield International Airport. Chick-fil-A, whose corporate headquarters on Buffington Road is across the street from Airport West, has signed a long-term lease to fully occupy the building upon its completion in January 2015.

Denton Shamburger, vice president for Lincoln, represented the landlord, Morgan Stanley, in the lease and was the only broker involved in the transaction.

The lease means Chick-fil-A will occupy nearly 85 percent of Airport West when the third building in the park is completed. Airport West currently features two buildings totaling 287,703 square feet, of which Chick-fil-A occupies 221,449 square feet.

 “Airport West has been a great success story, and Denton has done an outstanding job of leasing this industrial park,” said Tony Bartlett, senior vice president at Lincoln who oversees the Atlanta office. “Chick-fil-A is every owner’s dream tenant, and we are proud to be able to call them one of our valued clients.”

 About Lincoln Property Company

Dallas-based Lincoln Property Company is one of the nation’s largest diversified commercial real estate companies, employing over 6,800 people in 32 states and 10 countries in Europe. Since its inception in 1965, Lincoln has developed over 128 million square feet of office, industrial, and retail projects as well as 209,000 apartment units. Stemming from its development and ownership background, Lincoln's operating platform seamlessly integrates its various service lines, provides for consistent and measureable performance and utilizes cutting-edge technology over its 350+ million square feet of managed assets. 

 For more information on the Southeast Region of Lincoln Property Company, please visit lpcsoutheast.com. To check out the blog, go to www.lpcsoutheast.com/blog.

 

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Happy Days Here Again: "I have never seen more capital chasing commercial real estate"

HOUSTON (June 12, 2014) - The Commercial Real Estate Symposium at NAREE 14 lived up to expectations and provided some of the day's best soundbites. It's no surprise given the caliber of the panelists, who represented CRE heavyweights such as CBRE Global Investors, JLL and Transwestern.

Here are some of the highlights of the conversation, moderately nicely by Commerical Property Executive's top editor, Suzann Silverman.

- Office tenants are seeking cooler, open spaces because millennials want more "'we' space, less 'me' space," Transwestern's Chip Clarke told the gathering. In other words, big corporations run by 40- and 50-somethings are smart enough to cater to up-and-coming 20-somethings for the sake of their business. Of course, the bigwigs are making these decisions from their large corner offices with tons of "me space."

- Millennials also crave natural light. Employees want sunlight, "so floor-to-ceiling glass is at a premium, said CBRE Global Investors CEO Matt Khourie.

- Tech and energy companies - combined with record corporate profits, white-collar resilience - saved the office sector. "We're more optimistic today than we've been in 7.5 years," thanks to tech and energy - JLL's John Sikaitis said, and he was armed with data to prove it. While this has been a great ride, other industries must pick up the pace to keep the recovery going. Diversity = office growth, Sikaitis said.

- During each CRE upswing, people love to say something along the lines that capital is chasing deals. That's happening this time, but it's still worth noting. "I have never seen more capital chasing commercial real estate, and that's since 1980," CBRE Global Investors' Khourie told the gathering of real estate journalists and PR pros.

- Better yet, if the chasers armed with cash happen to be from China, yield is not paramount, Khourie said. "Chinese buyers are willing to give up some yield for trophy assets."

- And trophy assets are practially all anyone wants to lease. Trophy and Class A demand accounted for 80% of occupancy growth in office sector since 2011, JLL's Sikaitis said.

- On the industrial side, private REITs have a big advantage over REITs and other buyers. Private REITs have been most aggressive industrial buyers due to their "untouchable" cost of capital," Trey Odom of Avera Cos. said.

- Finally, longer-terms offices leases are back and will ensure buildings hold value longer. Tenants willing to sign 10-, 15-year leases for office space again, Transwestern's Clarke said.

 

 

 

Atlanta Developer's Sale of Jacksonville Mall Sets Mark For Retail Real Estate Sales

ATLANTA (June 11, 2014) - Atlanta developer and retail visionary Ben Carter just sold his stake in an upscale Jacksonville mall for a great price. Carter developed St. Johns Town Center and successfully persauded retailers including Apple, Louis Vuitton and soon Nordstrom to take space or build at the superregional mall.

Carter sold his 50 percent ownership stake in St. Johns Town Center to Deutsche Asset and Wealth Management, a unit of Deutsche Bank formerly known as RREEF. (Simon Property Group, the huge REIT, owns the other 50 percent and will continue to lease and manage St. Johns Town Center.)

The price for half of the 1.2 million-square-foot center was more than $375 million, according to The Wall Street Journal. 

That's a big number and is emblematic of investors' desire for malls with high occupancy rates and top-notch clients. The transaction highlights Carter's real estate savvy and vision. He built an upscale mall in a secondary market and filled it with primary-market tenants. Then, he sold at the right time. The Wilbert Group is thrilled to be working with him.

Here's more from Robbie Whelan's story in the Journal.

Mr. Carter, who also has property investments in Atlanta and Savannah, Ga., said in an interview he sold his stake in the Jacksonville mall because he wants to focus on different projects. He also said he thought he could get a good price because there are few high-quality, superregional malls on the market.

"My new business strategy is outlet malls and urban development. I don't see a great need in the Southeast for regional malls," Mr. Carter said. "They're not making these assets anymore. There are very few of them in private hands, and the premium assets don't really trade."

St. Johns Town Center had an occupancy rate of 99% and sales of between $650 and $700 a square foot last year, according to Mr. Carter and brokers who worked on the deal.

 

Deutsche Asset & Wealth Management, formerly known as RREEF, has $47 billion in assets under management in its real-estate investment business and invests in publicly traded real-estate investment trusts, private equity and debt, in addition to making direct property investments across the globe.

In a 2014 strategic outlook report produced by Deutsche in February, the company observed that "the split between the best- and worst-performing shopping centers grows ever wider and seems to be enduring," and said that it prefers to invest in "dominant regional malls and unique retail offerings" such as urban "high street" retail.

Green Street Advisors, a Newport Beach, Calif.-based real-estate research firm, estimates that last year, the highest-quality malls in the country, dubbed "A++" malls, produced $945 in sales a square foot of space. D-malls, the lowest-quality grade, produced $140 a square foot last year. Based on its sales per square foot last year, St. Johns Town Center would fall somewhere between an A and A+-rated mall.

The sale to Deutsche is "a good sign for owners who have this quality of properties in their portfolios," said Daniel Busch, an analyst who covers retail real estate for Green Street. "All the focus recently has been on selling low quality properties, the B malls. That's what's been on the market. These high-end transactions are few and far between. This transaction gives us a lot of confidence that values are holding up at the high end."

 

 

Jacoby Sets Sights on Former Ford Plant in Norfolk

ATLANTA (Jan. 28, 2010) - Jim Jacoby, who is leading the charge to redevelop the former Ford Atlanta Assembly Plant into an "aerotropolis," wants to redevelop the shuttered Ford Assembly Plant in Norfolk, Va., as well.

Earlier this week, Jacoby told me his company plans to buy the former Ford plant in Norfolk and develop a mixed-use project laden with alternative energy devises and uses. These would include solar panels, wind turbine production and perhaps a wind farm off the coast.

Jacoby, a former retail strip center developer, now is best known for leading the redevelopment of the former Atlantic Steel plant along Atlanta's Downtown Connector, into the mixed-use gem known as Atlantic Station (home of WNS headquarters).

The Ford Assembly Plant site on Indian River Road in Norfolk encompasses 109 acres of land zoned for industrial use and is served by, naturally, Norfolk Southern rail. More than 2.6 million square feet of manufacturing facilities remains on the site, which fronts the Eastern Branch of the Elizabeth River, according to CB Richard Ellis, which is marketing the site for sale. Ford closed the plant in June 2007.

Jacoby's connection with Ford probably positions him well in his effort to acquire the Norfolk plant. In June 2008, Jacoby bought the 122-acre Atlanta plant from Ford and announced plans for a mixed-use development near Hartsfield-Jackson Atlanta International Airport. A press release announcing the sale described the "aerotropolis" as "an aviation-intense business district that is expected to include office, retail, restaurants, hotel and airport parking."

It will be interesting to see if Jacoby, above right, does buy the Norfolk plant, and if so, how his plans for an alternative-energy intensive mixed-use development turn out.