Hartz Mountain Drops $55M on Charlotte Industrial Asset

By Eliza Theiss, Associate Editor

RSI Distribution Center aerial view

New Jersey-based Hartz Mountain Industries Inc. has acquired the one-million-square-foot RSI Distribution Center in Metro Charlotte, paying $55.7 million. Cushman & Wakefield | Talhimer’s Capital Markets Group represented seller The Keith Corp. in the property’s sale, aided by the company’s Charlotte office.

The Class A industrial facility, located on 82 acres of the 680-acre Lincoln County Industrial Park, is fully leased to RSI Home Products, the world’s largest manufacturer of laminate kitchen and bath cabinetry. The tenant has a new 15-year triple-net lease on the property through August 2029. The lease structure includes a 1.4 percent annual escalation between years one and five, followed by an annual increase of 1.5 percent through year 15. The property’s net operating income will clock in at $3,349,769 in commercial year 2015.

RSI Distribution Center ground view

The tenant’s revenues have more than quadrupled since 2004, when it opened its first location in Lincoln County Industrial Park, reaching $500 million in fiscal year 2013. As a result, RSI Distribution Center has expanded three times. The most recent expansion, executed in 2014, added 225,000 square feet. According to Cushman & Wakefield | Talhimer, RSI is considering an additional 100,000-square-foot expansion.

As a result of its multi-phase development, the distribution facility is suited for future multi-tenant use. Individual phases range between 200,000 square feet and 350,000 square feet. Strategically located within the 4.4-million-square-foot Lincoln County Industrial Park, the facility has optimal access to I-85, the Southeast’s primary industrial route and I-40, the Southern United States’ most important east-west distribution corridor via the US Highway 321 Inter-Connector.

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Images courtesy of Cushman & Wakefield | Talhimer