VOL. 128 | NO. 47 | Friday, March 8, 2013
Patterson Warehouses Adds Space
By Sarah Baker
Patterson Warehouses Inc. is boosting its longtime local presence with a new lease in DeSoto County.
The renowned player in Memphis’ third-party logistics industry is leasing 237,952 square feet of Class A space in Marathon Distribution Center, 295 Marathon Way in Southaven.
Patterson’s home base is at 5388 Airways Blvd. But the 3PL has more than 1.5 million square feet of contract warehouse space in Memphis and Horn Lake.
Founded in 1856, Patterson’s bread and butter is importing goods that often arrive via container ship from Long Beach, Calif. Patterson moves those containers from local rail yards to their facilities to then unload and inventory the product, in essence becoming its clients’ distribution arm.
Patterson’s customers include ConAir, Medtronic, Black & Decker, Cuisinart, Fiskars, Helen of Troy, Dr Scholl’s and Crayola.
Matt Mulroy, vice president and general manager for Patterson Warehouses, declined to comment about what fueled the company’s expansion into the 295 Marathon Way space.
“We tend to try to fly below the radar,” Mulroy said. “We’re very quiet about our business – very successful, but quiet at the same time. We sometimes don’t want to tell the world what we’re up to in specifics.”
Andy Cates and Preston Thomas with Colliers International represented the tenant in lease negotiations. Mark Jenkins, executive vice president with Cushman & Wakefield/Commercial Advisors Asset Services LLC, represented the landlord, San Antonio, Texas-based USAA Real Estate Co.
Lang Allen, executive director of portfolio management for USAA, said he’s “ecstatic” to have Patterson Warehouses as a tenant. The 3PL’s lease brings the total 454,272-square-foot duplex warehouse to 100 percent occupancy.
“We’re extraordinarily pleased and happy to have Patterson, who’s obviously one of the premier third-party logistics providers and warehouse providers in Memphis,” Allen said. “Sometimes, a 3PL or a warehouse provider will say, ‘I’ve got three or four different accounts going in,’ sometimes they’ll say, ‘this is a dedicated facility for one specific customer.’ I’m not aware of either scenario or case.”
While USAA Real Estate administers the funds for 295 Marathon Way, the asset is owned in a separate, private Real Estate Investment Trust called U.S. Industrial REIT II.
Originally built by Industrial Developments International Inc., 295 Marathon Way was the Atlanta-based developer’s first in DeSoto County. West Coast Novelty Corp. occupies the balance of the facility, which once housed Treadways Corp.
• In other commercial leasing news, Commercial Advisors Asset Services has enjoyed new leasing momentum at Poplar Towers in East Memphis just east of Interstate 240.
The team closed five deals by the end of 2012/first quarter of 2013. Coupled with no move outs, the building had a positive year-end absorption of nearly 7,000 square feet with a total occupancy of 77 percent.
New tenants to the building include Adrian Blotner, State Farm agent Mike Fay, Southern Bride Magazine, Spectrum Lubricants and Nationwide Insurance.
The average asking rent for Class A and B buildings along the Poplar/240 corridor is $21.91. Leasing agent Anna Tranum said the asking rent at Poplar Towers is considerably lower, making it of value for tenants who want to be along the Poplar Corridor but do not want to pay the higher rents.
Poplar Towers is owned and managed by Lake Worth, Fla.-based In-Rel Properties Inc. In-Rel awarded Commercial Advisors the leasing assignment for the nine-building, 1.4 million-square-foot portfolio in May.
The leasing team is led by Commercial Advisors brokers Phil Dagastino Jr., Bentley Pembroke and Tranum. Since assuming leasing of the portfolio, the team has completed more than 116,275 square feet of new deals and renewals.