GTIS, Collett Team Up for $140M Venture
The partnership is pursuing industrial opportunities in this tight South Carolina market.
Global CRE investment firm GTIS Partners and Charlotte, N.C.–based industrial developer Collett Industrial have formed a joint venture to acquire and develop two separate-but-adjacent projects in the Greenville-Spartanburg, S.C., area with a total capitalization of $140 million.
One of the projects, the 116-acre Willimon Business Park in Greenville, is well along. Its first phase of two speculative Class A buildings totaling some 530,000 square feet is under construction and a third, of 225,000 square feet, is planned for the future, a GTIS spokesperson told Commercial Property Executive.
Phase one will deliver later this year and comprises Building A, a 224,640-square-foot rear-load facility and Building B, a 294,840-square-foot cross-dock warehouse, expandable to 589,680 square feet. Thermo King, the transport refrigeration brand of Trane Technologies, preleased Building B in March. Colliers Managing Directors John Montgomery and Garrett Scott, together with Vice President Brockton Hall, spearhead the leasing efforts at the property.
Willimon is at 1500 Perimeter Road, immediately south of the Donaldson Center Airport—the former Donaldson Air Force Base—with access to interstates 85, 185 and 385.
The spokesperson explained that the projects combine a $62 million recapitalization of Willimon Business Park, the acquisition of land for the eventual third building there, with the purchase from local owners of the site for the other project. This adjacent planned project, which is yet to be named, will feature two industrial buildings to be developed in 2023.
Both developments are within the same Opportunity Zone on the eastern edge of the South Carolina Technology & Aviation Center, one of South Carolina’s largest business parks.
Busy, for now
The Greenville-Spartanburg area’s economy saw rising employment, including in several industrial sectors, according to a second-quarter report from Cushman & Wakefield. Concurrently, available industrial space continued to fall to a record-low vacancy of 2.3 percent. Of the 1.5 million square feet of speculative space delivered in the second quarter, 85 percent was preleased.
The report also shows industrial space rents continued to climb, though new projects coming online over the next 12 months are expected to decelerate rent growth. Just in the past few months, Hunt Midwest broke ground on the first building at a 2 million-square-foot logistics park in Anderson, S.C., while a partnership of SunCap Property Group and Goldman Sachs got underway on a 140-acre speculative industrial development in Greenville.