LRC Properties has expanded its Memphis footprint with the $57 million acquisition of a three-building, 1,115,269-square-foot industrial portfolio, in a joint venture with funds managed by Rialto Capital. According to CommercialEdge information, the previous owner was Ares Management, which had purchased the assets in 2016.
Located at 3530 E. Raines Road, 5510 E. Holmes Road and 5540 E. Holmes Road in the Memphis Airport submarket, the single-story buildings came online in the 1990s. The new owner intends to add minor capital improvements to the properties that were fully occupied by Geodis Logistics and Dayco at the time of sale.
The portfolio is roughly 15 miles southeast of downtown Memphis, just east of Memphis International Airport, and 6 miles from the Technicolor Building, the first asset LRC purchased in the metro; the firm paid $23 million for the 640,000-square-foot facility in December.
According to CommercialEdge information, more than 5.7 million square feet of industrial space have traded across metro Memphis since the beginning of the year, with nearly 2.6 million square feet pertaining to the Memphis Airport submarket. The metro also had 13.4 million square feet of industrial product under construction as of May, representing 5.6 percent of stock.
Betting on Memphis
This portfolio purchase is LRC Properties’ second major deal in Memphis, expanding its local footprint to nearly 1.8 million square feet. Principal Karie Nero said, in a prepared statement, that LRC sees Memphis as a key market that will witness continued improvement and rent growth, and that the firm will continue to pursue further acquisitions and management opportunities in the metro.
The acquisition brought LRC’s southeastern portfolio to roughly 6 million square feet of owned commercial properties and assets under management worth more than $560 million. Other recent purchases include a 288,860-square-foot industrial property in Nashville, Tenn., and a 469,830-square-foot asset in Jacksonville, Fla.