VOL. 126 | NO. 254 | Friday, December 30, 2011
CRE Activity Stays Strong During 2011
By Sarah Baker
Despite hard times, local commercial real estate firms were able to ink plenty of deals in the past 12 months.
Memphis’ industrial leasing activity kicked off in January when Buena Park, Calif.-based Pacific Logistics Corp. signed a 60,000-square-foot lease in ProLogis Park DeSoto for its first Memphis-area location.
Ryan George, vice president and market officer for San Francisco-based ProLogis, represented the landlord. The industrial team of Andy Cates, Preston Thomas and Mike Driscoll with Colliers International represented Pacific Logistics.
In March, San Jose, Calif.-based worldwide electronics distributor WPG Americas Inc. signed a 54,000-square-foot lease at Airways Distribution Center, 481 Industrial Drive, in Southaven. The project – a relocation of WPG Americas’ New York facility – represents a $1.5 million investment by the company and will create 60 jobs over the next three years.
Patrick Burke, CB Richard Ellis Memphis’ vice president of industrial brokerage services, represented the tenant. The landlord was represented by Tim Moore, vice president of leasing with Atlanta-based Industrial Developments International Inc., which leased 1.5 million square feet in Memphis in 2011.
Another big deal for both Southaven and IDI is the renewal of PFSweb Inc. affiliate Priority Fulfillment Services Inc. for 434,900 square feet.
Wyatt Aiken, chief operating officer and executive vice president of Cushman & Wakefield/Commercial Advisors LLC, represented the tenant. Moore represented the landlord.
In August, IDI announced plans to build a 234,000-square-foot pharmaceutical distribution facility at Crossroads for Watson Pharmaceutical’s Anda Distribution division.
Later in the year, IDI signed a new, 212,880-square-foot lease with General Electric International Inc. at Crossroads Distribution Center, building A, in Olive Branch.
GE International, a subsidiary of General Electric Co., joined Smiths Medical in building A, bringing the 452,743-square-foot building to 100 percent occupancy.
Lisa Harber of CBRE Atlanta and Burke of CBRE Memphis represented GE in the lease transaction. IDI’s Moore represented the landlord.
Meanwhile, Savannah, Ga.-based third-party logistics firm Coastal Logistics Group Inc. expanded into the Southeast Memphis industrial market with a new, 50,000-square-foot lease at 5715 Distribution Drive.
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.
Also, KIK Custom Products, an Ontario-based manufacturer of national and retail-brand consumer products, signed a lease for 115,000 square feet in the Space Center Industrial Park, 265-353 Titan Drive.
Richard Stern, principal with Montreal-based Olymbec, purchased the 1.1 million-square-foot Space Center, 3051-3133 Tranquility Drive, in January for $7.3 million. At the time of purchase, occupancy was just 49 percent. KIK’s lease brought the center’s occupancy level to 68 percent.
Gene Woods, president of Colliers International’s Memphis region, represented Stern. Ed Larkin, industrial division director with Memphis Commercial & Industrial, represented the tenant.
During the final quarter of the year, Nissan North America Inc. renewed its 413,000-square-foot lease in Southeast Shelby County.
CBRE’s Burke represented Nissan in the deal. Mark Jenkins, executive vice president at Commercial Advisors Asset Services, represented the landlord.
And Seal Beach, Calif.-based Baker Corp. signed a 20,000-square-foot lease at 1451 Corporate Ave. for its entrance into the Tennessee market.
Cates, Thomas and Driscoll represented the tenant and landlord, and were the only agents involved in the deal.
On the office front, Swedish appliance maker Electrolux signed a 14,000-square-foot lease at One Commerce Square, 40 S. Main St., for the building’s entire 24th floor.
The office will serve as a startup command center that will oversee the construction and development of its new 700,000-square-foot facility in Frank C. Pidgeon Industrial Park.
Phil Dagastino, senior leasing associate with Commercial Alliance Management, represented the landlord.
Out East, Raleigh, N.C.-based Highwoods Properties Inc. inked a 21,953-square-foot lease with Evolve Bank & Trust and a 12,150-square-foot lease with SouthernSun Asset Management, both in its Triad III Centre, 6070 Poplar Ave., bringing the center’s occupancy to about 50 percent.
In addition, National College/Corolla Management Corp. purchased two sites totaling 10.6 acres at 2576 Thousand Oaks Cove from Bank of Bartlett for $925,000 for the private college’s third brick-and-mortar location in Memphis
NAI Saig Co.’s Brian Califf negotiated the deal.
Meanwhile, Boyle Investment Co. inked a pair of new office leases at 999 S. Shady Grove Road in Ridgeway Center, bringing the center’s occupancy to 95 percent.
Education Realty Trust Inc. signed a long-term lease for 27,000 square feet on the sixth floor and NewSouth Capital Management Inc. relocated from 1100 Ridgeway Loop to occupy 9,000 square feet of space on the fifth floor.
Local experts predict any new office construction in 2012 to be in Boyle’s land near 999 S. Shady Grove.
A substantial office lease for Downtown Memphis occurred in October when CrescoAg LLC signed a new 4,594-square-foot lease at 88 Union Ave. for its corporate headquarters.
The agricultural start-up company will occupy the entire fifth floor and bring the occupancy of the 78,064-square-foot office building to 77 percent.
Grant Ridgway of CBRE represented the landlord, Three Sisters Partnership, and was the only broker involved in the deal.
“It’s good to have another new headquarters in addition to the (Great American) Steamboat Co.,” Grant said. “Even though it’s 5,000 square feet at a time, good things are happening Downtown and this is one of those.”
• And in the retail sector, Memphis Goodwill Industries leased a handful of new centers in 2011, including 28,628 square feet in the former Best Buy at the Market at Riverdale Bend, 7110 Winchester Road.
The balance of the Best Buy space – 17,000 square feet – has been leased by Planet Fitness, a national health club franchise.
Jess Ossorio with Crump Commercial LLC/Corfac International represented the tenant. The landlord reps were Ed Thomas and Andrew Phillips with Colliers International.