VOL. 127 | NO. 200 | Friday, October 12, 2012
Lease Brings New Breed Footprint to 3 Million Feet
By Sarah Baker
New Breed Inc. is enhancing its Memphis operations with a new distribution warehouse lease in the Southeast industrial submarket.
The High Point, N.C.-based firm has inked 404,400 square feet in Southpark Distribution Center Building O, 4585 Quality Drive, in a space that formerly housed part of Cleo Inc.’s Memphis operations before it vacated the market last year.
Privately held New Breed specializes in outsourced third-party logistics (3PL) and supply chain consulting. The new lease brings New Breed’s Memphis footprint to about 3 million square feet.
Joe Hauck, vice president of sales and marketing at New Breed, said Memphis is one of the company’s larger markets, along with Dallas. Founded in 1968, New Breed entered Memphis in the early 2000s; the company’s first operation was for Siemens Medical Solutions, a partnership that continues to this day.
“Memphis is really a big focus area for us,” Hauck said. “It’s been a great growth area for us – many of our clients like to be there, want to be there. You have the advantage of location and then services of the various carriers. It’s become a very good labor market for us.”
New Breed will use the warehouse as a multi-client operation, some of which will start during the first quarter of next year. Hauck said over the next couple of years, the space will create “a couple of hundred jobs easily.”
Dallas-based Hillwood Investment Properties bought the Southaven Distribution Center warehouse in July from TIAA Realty Inc. as part of a larger, $37 million portfolio sale. Situated on 21 acres on Shelby Drive at U.S. 78 (Lamar Avenue), the Class A facility has 30-foot clear height and 46 dock doors.
Hauck said New Breed will make “substantial” investment in “totally up-fitting the building.”
Treat Macdonald, partner of Crump Commercial LLC, represented New Breed in lease negotiations. Brad Kornegay and Tim Mashburn with Colliers International Asset Services were the listing agents on behalf of Hillwood.
• In other commercial leasing news, Keller Williams Realty has expanded by 1,644 square feet in Lynnfield Office Park, 1355 Lynnfield Road, bringing its total lease to 10,113 square feet.
Anna Tranum and Bentley Pembroke with Cushman & Wakefield/Commercial Advisors Asset Services LLC represented the Lake Worth, Fla.-based building owner, In-Rel Properties Inc.
Psychiatrist Adrian Blotner has leased 1,165 square feet in Poplar Towers, 6263 Poplar Ave. Tranum and Brand Cook, also with Commercial Advisors Asset Services, represented In-Rel.
In addition, attorney Chris A. Cornaghie renewed his 1,115-square-foot lease in Lipscomb & Pitts Building, 2670 Union Ave. Extended. Tranum and Pembroke handled the deal.
Also renewing is Tennessee Special Olympics for its 788-square-foot lease in Lynnfield Office Park. Tranum and Pembroke were the landlord reps. Chip Brown of Bomar & Brown LLC co-brokered the transaction.
• Meanwhile, Blake Pera and Tommy Bronson III with CB Richard Ellis’ multi-housing group represented the sellers in three separate regional transactions over the last three weeks.
Belvedere Apartments, a 10-story, mid-rise property on Union Avenue, sold for $2.6 million, or $28,890 per unit.
CBRE’s multi-housing group represented the seller of the 90-unit property, Belvedere Apartments Inc. Turley represented the buyer, Kroger.
Also, Belmont Apartments, a 164-unit property in Hattiesburg, Miss., sold to an Alabama buyer in September for an undisclosed price.
CBRE represented the lender in the real estate-owned sale of the 2008 vintage property. One of the newer properties in Hattiesburg, the asset attracted a “tremendous amount of interest” due to its age and location within the market, according to a CBRE statement.
And North Hill Square in Jackson, Miss., closed Oct. 3 to a Birmingham, Ala.-based buyer for an undisclosed price.
CBRE represented the lender and receiver in the distressed sale.
“While the property was approximately 50 percent occupied at closing, the buyer plans to reposition the asset through significant capital improvements to capitalize on the location and strong performance of surrounding properties,” according to a CBRE statement.