|
|
08.13.04 - Granite gets into industrial game with Daws, Republic
In May, Granite purchased an industrial building through Republic at 5887 Fulton Industrial Blvd. from Meritex Enterprises for more than $7 million. But the developer bought much more than the building. It also bought 87 acres that will eventually become a 1.3 million-square-foot industrial park, Riverview Distribution Center, at a projected cost of $47 million.
Republic is razing an existing warehouse, formerly used by Total Warehousing Inc., to make way for a 265,000-square-foot, front-loaded warehouse, the first in a string of four planned distribution centers at Riverwood, said Steve Martin, managing director of Granite Properties in Atlanta.
This will be a first for Granite Properties in Atlanta, which entered the market in 2003 with the $40 million purchase of Cumberland Office Park from Prentiss Properties Trust (NYSE: PP).
Granite Properties is no stranger to industrial real estate, having extensive holdings elsewhere in the country. "It's a logical thing for us to do in Atlanta," Martin said. "It was a deal we were attracted to." Total Warehousing has since moved in to 90,000 square feet at the Atlanta West Distribution Center off Interstate 20. The first warehouse will be speculative construction -- meaning no tenant has leased the space yet, Martin said. And the group plans three more distribution centers: a 550,000-square-foot facility, a 185,000-square-foot facility and a 300,000-square-foot building. The first three buildings will be front-loading facilities -- meaning only one side of the warehouse will have truck loading bays. The last building will be a cross-dock warehouse, meaning trucks can load and unload on opposite sides of the building.
Jerry Daws, who heads up Republic in Atlanta, said the South Fulton industrial market has shown strong activity in the past few months -- enough to warrant speculative construction.
"You have Staples out there looking for space, you have PetsMart," Daws said. "Activity out there in Fulton Industrial is enormous."
Granite's Martin said this likely won't be the last industrial play in Atlanta for the company, but nothing definite is in the works.
"We're constantly looking at office deals as well as industrial deals," he said.
Thanks and have a great day!!!!
|