Charlotte and Charleston Get an Industrial Boost!
Big news is unfolding in Charlotte and Charleston as a logistics real estate firm is making waves with a mighty expansion! Indus Realty Trust Inc. has just announced that they are spreading their wings by acquiring a majority stake in a whopping 21 industrial properties from the well-respected Childress Klein, a renowned commercial real estate developer based in the Queen City.
What’s in the Deal?
This exciting move means that Indus Realty is increasing its footprint in the Charlotte and Charleston industrial market by a staggering 4.3 million square feet. According to a recent press release, the entire portfolio of properties is valued at an impressive $575 million. However, not every detail about the properties involved was shared right away. But what we do know is that these buildings are part of Childress Klein’s Carolinas Portfolio—a portfolio that’s already known for its excellent standards.
A Smart Move? Absolutely!
Indus President and CEO Michael Gamzon expressed his enthusiasm about this latest venture, saying, “We are pleased to increase our scale in the Charlotte and Charleston markets and grow our exposure to the fast-growing Southeastern U.S. region.” And he’s right to be excited! These properties have been constructed, maintained, and leased to the highest quality standards by Childress Klein, setting them up for success.
Childress Klein’s Role
Don’t worry, Childress Klein isn’t taking a backseat in this partnership. They will keep a minority share of the properties and continue to manage and lease them. Fred Klein, the firm’s founding partner, mentioned that this is a part of a restructuring plan, allowing Childress Klein to remain owners while enhancing their industrial business. “This strategic partnership with INDUS allows us to leverage the strength of our current operating portfolio,” he noted.
Where Are These Properties?
As for the properties themselves? The portfolio consists of 16 buildings located in Charlotte, including several properties in the bustling Arrowhead neighborhood, and five buildings in the charming Charleston area. What’s even more promising is that all of these properties are about 94% leased, signifying a strong demand for industrial spaces in these thriving markets. While we don’t know the names of the tenants yet, it’s evident that these are highly sought-after locations.
An Overview of the Expansion
On average, each of the buildings spans around 205,000 square feet, while the individual tenant suites are about 78,000 square feet. This kind of space is hard to come by in the fast-paced industrial market. With this expansion, Indus Realty Trust is set to enhance the industrial landscape of both cities.
The Bigger Picture
As logistics continue to be a critical component of our economy, this expansion allows Indus to better serve the southeastern region of the United States. The deal not only boosts local economies but also makes room for new opportunities within the industrial sector.
As the dust settles on this newly announced partnership, we can only expect more exciting developments ahead. Keep your eyes and ears open because the Charlotte and Charleston industrial markets are about to become even more dynamic!
