Industrial News

IDI developing distribution center in Atlanta for AmeriServe Atlanta's Industrial Developments International Eastern Region will develop a 230,000 sq. ft. distribution center at its SouthPoint business park for Dallas-based AmeriServe Food Distribution Inc.

The location near Atlanta's Hartsfield International Airport will consolidate several smaller Atlanta area AmeriServe distribution facilities.

SouthPoint's selection was the result of a yearlong site selection analysis by Cushman & Wakefield, which represents AmeriServe nationally.

"Our analysis covered the entire market, from Gwinnett County in the northeast to Douglas County on the west side," said Ray Stache, the Cushman & Wakefield broker representing AmeriServe in Atlanta. "Ultimately, this location best met Ameriserve's needs."

Panattoni-Hillwood closes first deal in suburban Dallas Panattoni-Hillwood, a joint venture formed in August between Hillwood Development Corp. and Panattoni Development Co., has closed its first deal with the purchase of 89 acres in Lewisville, Texas.

The joint venture combines the resources of two of the largest privately-held developers in the United States.

Construction began in January on a 400,000 sq. ft. speculative industrial building that is expandable to 600,000 sq. ft. The site on the east side of Interstate 35 East will include 508,000 and 550,000 sq. ft. industrial buildings as well.

The deal also marks Hillwood's first industrial project in the Dallas-Fort Worth area outside of its highly successful Alliance project, which houses more than 60 companies on 9,400 acres.

American Real Estate enters Southeast Plymouth Meeting, Penn.-based American Real Estate Investment Corp. has acquired 2.4 million sq. ft. of industrial space in the Greenville/Spartanburg, S.C., area from affiliates of T. Walter Brashier, one of the largest private developers in South Carolina.

The portfolio includes 26 buildings in seven industrial parks in the Greenville/Spartanburg area, and is currently 100% leased by tenants such as BMW, Hitachi and General Electric. The aggregate purchase price was $49.6 million, or $20.70 per sq. ft.

"Through this purchase, we are gaining instant critical mass with control of almost 10% of the local competitive inventory, and we see ample opportunities for continued acquisitions," says John Begier, American Real Estate senior vice president of acquisitions. "The purchase provides a going-in yield of over 11% with additional near term upside, as the majority of expiring leases are at significant discounts to current market rent."

As part of the consideration in the transaction, American Real Estate issued $7.5 million in Convertible Preferred Limited Partnership Units. The units have a conversion price of $16.50, and an initial distribution rate of 9% per year. The liquidation preference of each unit is $25.

Koll building City of Industry business park Newport Beach, Calif.'s Koll Construction has begun building the fist phase of The Plantation, a 71-acre business park in the City of Industry.

Owned by Koll Development Co., the two-phase project includes more than 1.4 million sq. ft. of Class-A industrial space for manufacturing, distribution, R&D and warehouse use. Estimated construction costs are $30 million.

Originally scheduled for completion by the end of 2001, Koll Construction plans to complete the project by summer 1999 to respond to increasing demand for industrial space.

The first phase of the development will include six buildings ranging from 30,000 to 300,000 sq. ft., totaling 583,031 sq. ft., and is expected to be completed by March. The second phase, which will include three buildings totaling 807,517 sq. ft, began construction in December.

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