INDUS Secures $36M Loan for Nashville-Area Logistics Project
The development is part of a 2.2 million-square-foot campus.
INDUS Realty Trust has received $36.1 million in construction financing for the first phase of INDUS Commerce Center @ 840, a 507,000-square-foot speculative logistics facility in Lebanon, Tenn., near Nashville. JLL Capital Markets arranged the five-year, floating-rate loan from Principal.
ICC @ 840 is intended to eventually grow into a 2.2 million-square-foot master-planned park, after the addition of two to three further buildings ranging from 400,000 to 1 million square feet, on a speculative or build-to-suit basis.
Site work for the entire park is complete, and INDUS is starting vertical construction on the first building. That cross-dock facility will feature concrete tilt-up construction, 40-foot clear heights, ESFR sprinklers and high-efficiency LED lighting. To accommodate distribution demands, plans call for 60-foot speed bays, 120 dock-high doors, four drive-in doors, 216 auto parking spaces and 170 trailer stalls.
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The location is directly off Interstate 840 in Wilson County, about 30 miles east of downtown Nashville, with close access to interstates 40, 24 and 65. The project is also near the Smyrna Airport and Nashville International Airport, both of which are undergoing expansions.
The JLL Capital Markets team that arranged the financing was led by Managing Director Bobby Norwood and Director Anthony Sansone, along with Associates Austin Smith and Connor McCarthy.
Nashville industrial’s rising vacancy
Nashville’s industrial real estate market is seeing rising vacancy as the mismatch between deliveries and demand widens, according to a report from Matthews. Second-quarter completions of 2.5 million square feet, minus only 137,000 square feet of net absorption, resulted in an overall vacancy of 7.3 percent.
In addition, a further 9.2 million square feet is under construction—and more than 90 percent of it is not yet spoken for, Matthews reported.
Other INDUS activity came in January, when the REIT acquired the fully leased, 833,000-square-foot Westridge Distribution Center in McDonough, Ga., from Link Logistics. In February, INDUS sold a nine-building, 641,631-square-foot shallow-bay industrial collection across Hartford County, Conn. And in August, the company entered the Houston market with the purchase of Park 845 Crossing, a 757,000-square-foot, five-building logistics campus that is 99 percent occupied.
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