Sagard Real Estate Acquires Atlanta Industrial Property
The property has had the same tenant for more than two decades.
Sagard Real Estate has acquired a four-building, 400,000-square-foot industrial property in Atlanta’s Fulton Industrial submarket. The purchase was made on behalf of Sagard Real Estate’s open-end core-plus real estate fund.
The property’s previous owner was SkyREM, according to Yardi Matrix. SkyREM acquired the campus from U.S. Bank in 2015 for $9.1 million, following a foreclosure earlier that year.
The Class B property was completed in three phases from 1965 to 1985 and consists of four contiguous warehouse buildings across 15.5 acres along the Fulton Industrial Boulevard corridor. It features 48 dock-high doors and two ramped drive-in doors. Existing demising walls and office configurations allow for the buildings to accommodate multiple users over time.
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The site at 5070 Phillip Lee Drive SW is about 2 miles from Interstate 20 and 4 miles from Interstate 285, with access to downtown Atlanta and Hartsfield-Jackson Atlanta International Airport.
Sagard reported that the property is fully leased to a consumer products manufacturer that has occupied it for more than 20 years, using the facility for both production and distribution operations. The tenant appears to be Vantage Industries, which describes itself as the largest U.S.-based manufacturer of high-tech non-slip products, including rug pads, industrial liners, laminate underlayment, bathmats, shower mats, health and fitness mats, and similar products.
The sale comes just over a month after Sagard bought a 621,144-square-foot Class A distribution facility in Rosedale, Md., for $91 million. LBA Realty sold the asset.
Like 5070 Phillip Lee Drive SW, the Baltimore-area property is fully leased, in that case to food and beverage distributors, including a candy company and a wine-and-spirits distributor, along with third-party logistics providers.
Closer look at the Fulton submarket
Sagard noted that currently there is no competitive warehouse product under construction in the Fulton submarket, with the existing development pipeline designated for data center use.
Industrial space in Atlanta’s Interstate 20 West/Fulton Industrial submarket has an overall vacancy of 8 percent, on par with the metro’s average of 8.5 percent, according to a second-quarter report from Cushman & Wakefield. No new space was delivered in the second quarter, and only about 1.4 million square feet is under construction.
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