In industrial development news, construction on Panattoni Development Co.’s speculative industrial building in Marshall County, Miss., is progressing.
Panattoni is building a 554,000-square-foot speculative warehouse that is expandable to 1.3 million square feet in the Marshall County portion of the 1,500-acre Gateway Global Logistics Center industrial development, which has acreage in both Fayette and Marshall counties.
The Class A, cross-docked building will have 32 feet of clearance with modern lighting and sit on 32 acres with additional land available for trailer storage and expansion. Construction on the building started in September and the building is projected to be ready for tenant improvements in March.
Jim Mercer, executive vice president of CB Richard Ellis Memphis, said that while several users were looking for space in the Memphis market, the new building in Gateway is speculative.
“This is a speculative facility, with no specific tenant identified as of yet,” Mercer said.
The master plan for Gateway includes around 14 million square feet of industrial space.
East of DeSoto County – currently the Memphis market’s most active industrial submarket – Marshall and Fayette counties represents a promising new frontier for industrial development in the region, Mercer said.
“I believe Marshall and Fayette counties will be the next new industrial submarket in the Memphis area,” said Mercer.
Mercer’s prediction is based on several factors, including easy access to major roadways, a nearby intermodal yard and a business-friendly incentive program.
By December, the final stretch of Tenn. 385 between Poplar Avenue and Macon Road is expected to open, allowing access to Interstate 40 in Arlington. In addition, the first leg of Interstate 269 from Goodman Road to Tenn. 385 is expected to open by the end of 2014.
“There’s not another industrial park or submarket that has this immediate access and connectivity to the interstate system,” Mercer said.
In addition to the access to the interstate system, Gateway is located adjacent to Norfolk Southern Corp.’s $105 million, 500-acre intermodal yard, which is part of the railway’s larger Crescent Corridor project, a $2.5 billion effort to establish an efficient, high-capacity intermodal freight route between the Gulf Coast and the Northeast.
In leasing news, a new health spa is coming to East Memphis.
Energetic Esthetics has signed a lease for 1,265 square feet at 1315 Ridgeway Road inside the Primacy Place retail center on Ridgeway at Primacy Parkway. Aaron Petree represented the landlord, Loeb Properties Inc.
In other news, a Southaven apartment community changed hands this month for an undisclosed amount.
Church Lake, a 352-unit apartment community built in 1997 and 1999, was sold Oct. 1. Blake Pera and Tommy Bronson III with CBRE Memphis represented the seller, a joint venture between a fund managed by DRA Advisors LLC and Fogelman Properties, in the sale to Philadelphia-based PRG Real Estate. PRG Real Estate, which was founded in 1985, said in a statement that Church Lake provides “a stable property in a rapidly growing market.”
Church Lake is adjacent to the $7.3 million facility shared by Northwest Mississippi Community College and the University of Mississippi and less than a mile from the Landers Center.
“PRG looks to capitalize on high demand and low supply available throughout DeSoto County,” the statement read. “Currently, there are only 5,200 units serving a population of 170,000.”