1 MSF Industrial Project Near Savannah Lands $63M Loan

Logistics 16 at Ottawa Farms, Phase I site. Image courtesy of McCraney Property Co.

McCraney Property Co. has taken a major step forward in its bid to help plug the gap between supply and demand of premier industrial product near the Port of Savannah now that it has secured approximately $62.8 million in construction financing for Phase I of Logistics 16 at Ottawa Farms in Bloomingdale, Ga.

The industrial property owner and developer relied on the assistance of JLL Capital Markets to obtain financing for the project, which will consist of just over 1 million square feet of industrial space.

JLL Capital Markets’ Melissa Rose, Michael DiCosimo and Mateo Bolivar spearheaded the team that represented McCraney in landing the financing, which the brokers placed through an unnamed lender in the form of a three-year construction loan. The precarious environment that comes with a recession has not curtailed the lending community’s eagerness to provide funds for the still-thriving industrial sector.

READ ALSO: Why Industrial Outdoor Storage Is the New Hot CRE Type

“There were a variety of capital sources expressing interest in this financing at various leverage points,” Melissa Rose, managing director with JLL Capital Markets, told Commercial Property Executive. “There is still significant capital availability for best-in-class sponsors pursuing Class A developments in high-growth markets at an attractive basis.”

Build here, don’t build here

Logistics 16 will take shape approximately 17 miles west of the heart of Savannah, Ga. The site, located within close proximity of the junction of Interstate 16 and Interstate 95, allows for easy access to the Port of Savannah, which serves as a leading economic engine in the area. “The Port of Savannah is the third busiest in the country and is the primary driver of the industrial boom the Savannah market has experienced as of late,” according to a second quarter 2022 report by CBRE.

Phase I of Logistics 16 will occupy roughly 85 acres at 702 Bloomingdale Road. The 1 million square feet will be divided among three front-load buildings offering the amenities industrial users expect in Class A facilities today, including substantial loading doors, deep truck courts, and ample car and trailer spaces. At full buildout, Logistics 16 will feature nine buildings for a total of 4.5 million square feet of industrial space.

Phase I is likely to be a welcome endeavor and may very well secure commitments before it reaches completion. “Net absorption has mirrored or outpaced deliveries over the course of the last year and challenges to construction continue to loom. Developers simply cannot build new inventory fast enough to keep up with the rampant demand for logistical space,” according to the CBRE report.

On the other hand, the project will not receive a warm reception from everyone. According to the CBRE report, “While there is plenty of land that can be developed, pushback from residents of suburbs such as Garden City, Bloomingdale and Port Wentworth have temporarily stopped industrial rezoning.” McCraney’s acquisition of the land for Logistics 16 was timely, as Bloomingdale was among a handful of cities that imposed a moratorium in the second quarter to temporarily block industrial rezoning.