A Middletown, Conn.-based office supply printing company has entered the local industrial scene, taking advantage of Memphis’ centralized logistical capabilities.
XSE Group Inc. has leased 40,214 square feet in Building 14 of Airport Distribution Center, 4006 Airpark St., owned by San Francisco-based ProLogis Inc.
Bobby Daush with CB Richard Ellis Memphis represented the tenant.
“They’re expanding into Memphis because they’re expanding their national footprint,” Daush said. “They’re expanding westward from Connecticut to the Memphis area because of the old adage of trying to reach more of the U.S. in a quicker amount of time from a central location.”
The Colliers International industrial team of Andy Cates, Preston Thomas and Mike Driscoll represented the landlord.
“It’s a great tenant because it was an older building, but it had really good clear height,” Cates said. “The building was 28-foot clear, and they were able to get a really good price on a building that had tons of clear height, which is pretty unique for the market.”
Cates and his team placed Ewing Moving Service Inc. & Storage into Airport Distribution Center Building 14 earlier this year for 81,000 square feet. With XSE’s new lease, the 121,689-square-foot industrial warehouse is now 100 percent leased.
• In other deals, XMC Inc. has relocated and expanded its corporate headquarters into 15,000 square feet in Bartlett at 7585 A E Beaty Drive. The flex industrial facility was previously occupied by ATMGurus and is made up of half office and half warehouse space.
XMC is the second largest Xerox dealer in the U.S., with nine locations in four states. The company was formerly in Cordova at 823 Exocet Drive, suite 109.
Cates, Thomas and Driscoll represented the tenant. Colliers’ J. Hickman represented the landlord, Weston Cos.
“We’re tickled to death to have XMC as a tenant,” Hickman said. “We think they’re a great fit, not only in the size of tenant for the development, but also the class of user. They’ll be a great fit for our tenant mix and for the development itself. Those buildings are pretty new building still.”
• Meanwhile, Nestle DSD Co. has signed a lease for 5,625 square feet of flex space in Belz Enterprises’ Shelby Oaks Industrial, 1691 Shelby Oaks Drive.
Daush, who represented the tenant, said the Northeast submarket is in proximity to Nestle’s customer base.
“This location was trying to get quicker access to Nashville and West Tennessee, rather than a tri-state region to where they’re trying to serve Arkansas and Mississippi,” Daush said. “They’re trying to stay on the eastern side of Memphis.”
Stan Myers represented the landlord in house.
• And Highland Meadows, a 600-unit apartment community at 5045 Airways Blvd., sold to New York-based Highland Meadows Partners LLC, for $5.5 million, or $9,233 per unit.
Tommy Bronson and Blake Pera with CBRE’s Multifamily Division represented the lender, Paradigm Credit Corp., in the sale.
Built in 1975, Highland Meadows contains one- and two-bedroom units with an average unit size of 894 square feet. Amenities include a swimming pool, lighted tennis courts, fitness center, clubhouse, walking track and picnic area.
The Class C complex spans 475,884 square feet and had a 2011 appraisal from the Shelby County Assessor of Property of $7.2 million.
Bronson said in a release that this is the second acquisition for the purchaser in the West Winchester/Memphis International Airport area.
“Highland Meadows … should provide them excellent economies of scale,” Bronson said. “Similar to their first acquisition, this is a value-add opportunity that provides plenty of upside to a good operator that is willing to re-capitalize that asset. The sale demonstrates their belief in the Memphis market.”