VOL. 127 | NO. 166 | Friday, August 24, 2012
LSI Buys Flex Space to Expand
By Sarah Baker
A northeast industrial flex warehouse in Appling Center Industrial Park has been snatched up by an expanding Bartlett-based engineering firm.
Larry W. Bailey, trustee of the Bailey Children’s Trust, bought the 30,397-square-foot facility and its 2.55 acres at 2756 Appling Center Cove for $1.5 million.
Bailey is CEO of Logical Systems Inc., an engineering company that provides high-tech manufacturing solutions worldwide.
Logical Systems was founded in 1985 in Memphis and currently employs 130 people in five offices and six locations. The five offices are in Bartlett; Jackson, Tenn.; Rossville, Ga.; Golden, Colo.; and Guangzhou, China.
The company, which specializes in control systems integration, has outgrown the facilities in Bartlett it has occupied for several years. The space at 2756 Appling Center Cove, south of U.S. 64, will meet its expansion needs, said Frank Lowry of Bill Lowry Realty Co. who represented the buyer.
“They have grown over the years locally and regionally,” Lowry said. “Their offices here in the Memphis area were not all in one place and they were looking to grow more in the Memphis area soon. So the idea is to refurbish 20,000 square feet of the 30,000 they bought for their offices to get them all in one location. This gives them room for that.”
LSI in July received a nine-year payment-in-lieu-of-taxes (PILOT) benefit by the city-county Economic Development Growth Engine Board, saving it roughly $423,000 in taxes. LSI will use the warehouse as its headquarters in the eastern U.S.
Approval of the PILOT program allowed LSI to commit to staying in Memphis. The company opened an office in Colorado a few years ago that’s grown to be its largest office, and its two largest clients – Xcel Energy and MillerCoors – are located there.
The Class A warehouse in Appling Center Industrial Park was built in three phases starting in 1997 and includes 18-foot ceiling height and three loading docks. Its 2012 appraisal from the Shelby County Assessor of Property is $1.6 million.
Dan Whipple, president of Crye-Leike Commercial, represented the seller, Donald White.
• In other commercial real estate news, American Realty Capital Trust III Inc., a New York-based real estate investment trust, has acquired the 1.1 million-square-foot Williams-Sonoma distribution center in Olive Branch for $52.4 million, or $47 per square foot, from a private investor.
Representing the seller in the transaction was Cushman & Wakefield’s executive director Stewart Calhoun in Atlanta, managing director Robert Elms in New York, and Dave Curran of Cushman & Wakefield/Commercial Advisors LLC in Memphis.
The cross-docked distribution facility was built in 2000 as a build-to-suit for Williams-Sonoma Inc., a high-end manufacturer of kitchenware. It is 100 percent leased to Williams-Sonoma Retail Services Inc., a subsidiary of San Francisco-based Williams-Sonoma Inc., the guarantor of the lease.
The lease has an original term of 22 years, which started in August 2000 and expires in January 2023.
• In other deals, N.H.R. Property LLC, an entity of ELK International LLC, purchased the 128,592-square-foot flex warehouse at 3645 Lamar Ave. for $425,000.
The Class C building, built in 1961 on 13 acres, received a 2012 appraisal of $400,000.
J. Max Hamidi of RE/MAX Elite represented the buyer in the deal. The listing agent was Michael Robison with Acker Robison Realty.
“They’re doing some work, upgrading it to use it as a distribution warehouse for candies and general merchandise for convenience stores and gas stations that they service in the market,” Hamidi said.
The building previously belonged to a California-based company called 3645 Lamar Partners LLP.
• Meanwhile, Speedee Cash Mississippi Inc. has entered into a 62-month lease for 1,230 square feet of office space at 6399 Goodman Road, suite 107, in Olive Branch from Crye-Leike Property Management.
Jeff Waddell with Crye-Leike Commercial’s Arlington office handled the transaction.