Industrial Realty Group LLC has just expanded its portfolio by 1.4 million square feet in one fell swoop. The commercial real estate company recently acquired the former Naval Ordnance Plant in Pocatello, Idaho, and has rebranded the 150-acre campus Titan Center.
Located in Southeast Idaho, Titan Center sits within close proximity to the intersection of Interstates 86 and 15. The property, established in 1942 to assist the U.S. Navy during World War II, is home to 23 buildings providing various types of industrial space, as well as office accommodations. IRG describes the site as one that would be impossible to duplicate anywhere in the U.S.
“Titan Center has an incredible history as a major manufacturing site for the U.S. Navy. As a result of the heavy manufacturing performed on the property, the former Naval Ordnance Plant has a wealth of infrastructure unique to the area,” a spokesperson for Industrial Realty Group LLC told Commercial Property Executive. “There are many cranes on site with upwards of 250-ton capacity, as well as significant rail connectivity, including spurs into some buildings and internal rail lines. Building 16 includes a high bay with 75-foot clearance. These features, combined with its easy interstate access and skilled work force, have been attractive to potential tenants.”
A receptive market
The timing appears right to introduce Titan Center to the market. According to a first quarter 2021 report by Colliers International, industrial properties in Eastern and Southern Idaho continue to experience drops in vacancy rates and positive absorption levels. IRG has tapped Don Zebe, Jared Zebe and Mike Zebe of Colliers to market Titan Center and in short order, the team has seen a strong response from prospective users, including those seeking build-to-suit options.
“Before even finalizing the acquisition, we received many tenant inquiries, and we believe these will translate into substantial leasing activity,” the spokesperson said. The site is already home to such names as Eaton Metal Products, Frazier Industrial Co., Mountainland Contractors Supply, SME Steel Corp. and Virginia Transformer Corp.
IRG plans to invest in upgrades of the former Naval Ordnance Plant by completing deferred maintenance and making other improvements. According to the spokesperson, “One of the main goals is to create a sense of arrival at the campus entrance by utilizing signage, landscaping and repairing on-campus streets.” The team endeavors to make Titan Center a magnet for tenants seeking distribution, manufacturing and office space, and potentially even retail space.
It has been a highly acquisitive year for IRG, which started 2021 with the purchase of a 799,000-square-foot portfolio of Gannett Co. commercial and industrial assets. In June alone, the company bought a nearly 24-acre site along the Houston Ship Channel in Houston, a portion of which involved a leaseback transaction with MTF holdings. IRG also acquired the 373,000-square-foot former Teledyne manufacturing plant in Toledo, Ohio, along with a neighboring 40-acre site. “IRG is experiencing intense growth in our portfolio, and there are more acquisitions to come in 2021,” added the spokesperson.