VOL. 127 | NO. 98 | Friday, May 18, 2012
Georgia 3PL Growing Its Area Footprint
By Sarah Baker
A Savannah, Ga.-based third-party logistics firm is seeing rapid expansion in the Southeast Memphis industrial market after its local entrance less than a year ago.
Coastal Logistics Group Inc. has signed a 50,000-square-foot lease extension at 5715 Distribution Drive, bringing its Memphis footprint to 100,000 square feet. The company inked its initial 50,000-square-foot warehouse lease in June.
CLG provides distribution, contract logistics, specialized export packing and crating, and project cargo for exporters. The company serves the Southeast gateway through locations in Savannah, Norfolk, Va., and Memphis.
Founded in 2004, CGL has been named twice in recent years on Inc. Magazine’s 500/5000 list as one of the fastest-growing privately held companies in the U.S. In addition, CGL in March announced a partnership with Houston-based Port Logistics Group to extend its geographic reach and service offerings.
Chicago-based Jones Lang La Salle’s Memphis office managing director Russ Westlake and associate broker Jack Wohrman represented the tenant. Scott Pahlow, executive vice president with Grubb & Ellis Memphis, represented the landlord, A.L. Dougherty-Tennessee III LLC.
Wohrman said CGL’s location has expansion capabilities up to 150,000 square feet.
“Like every 3PL, trying to get additional business from current customers and new customers is definitely what they want to do,” Wohrman said. “It’s nice to see the growth this quickly after entry into this Memphis market.”
Also, West-Tenn Industrial Redevelopment LLC has purchased an 872,000-square-foot warehouse at 2030 Sylvan Road in Dyersburg, Tenn., for $4.2 million.
The space previously housed Wisconsin-based print company Quad/Graphics Inc., formerly known as Quebecor World Inc.
Westlake and Wohrman represented the seller, QG LLC, in the transaction. There was no buyer representation.
• In other commercial leasing news, Dallas-based Briggs Equipment Inc. has purchased Lot 1 of Hickory Hill Industrial Park S. at 5511 E. Shelby Drive from Barloworld Handling LLC for $1.4 million.
The 7.3-acre, 36,665-square-foot site in Southeast Memphis was part of a 15-territory portfolio acquisition by Briggs of half of Barloworld Handling’s 30 assets in the U.S. The other half of Barloworld’s assets were purchased by LiftOne, said Briggs chief financial officer Joe Zimmerman.
“Barloworld had a branch in Memphis and they happened to own that building, so when we bought the assets of that location, we also bought the building and the land,” Zimmerman said. “It was just part of buying their operations, it wasn’t just pure, ‘let’s go buy some real estate.’”
With this acquisition, Greenville, N.C.-based forklift manufacturer Hyster Co. appointed Briggs as an authorized dealer for the sales and service of Hyster brand lift trucks in a portion of Barloworld’s territory, including the Memphis location.
“We’re in the materials handling business, so when we bought the assets of the Memphis operation for Barloworld, obviously we took on the customers as well,” Zimmerman said. “We need to make sure they know that if they were serviced by Barloworld before, they’re now serviced by Briggs Equipment.”
As far as any future expansion plans in Memphis, Zimmerman said, “we want to stabilize the operation initially and we’re always looking to expand, but we don’t have any immediate plans.”
• And Amerisource Industrial Supply Co. Inc. has renewed its lease for 11,250 square feet at 3090-3094 Fleetbrook Drive in Bellbrook Industrial Park.
Cushman & Wakefield/Commercial Advisors LLC principal Kemp Conrad and associate Neely Mallory IV represented the tenant. Patrick Walton, who was previously with CB Richard Ellis Memphis and recently joined Commercial Advisors, represented the landlord in the deal.
Bryce Daves with CBRE now represents Bellbrook on behalf of the owner, TC Bellbrook Industrial Inc., an entity of Trammel Crow Co. Bellbrook Industrial Park is a 13-building campus totaling 1.7 million square feet spread over 100 acres with access to the Interstate 240 and Interstate 55 interchange.
Amerisource’s main location is in Hamtramck, Mich., and in addition to the company’s Memphis presence, has a location in Neenah, Wis.
“We got some expansion language built in, they’re growing," Conrad said. "One of the good things about that park is plenty of space to accommodate growing companies,” Conrad said.