Industrial & Logistics

South 40 Distribution Center

2201 S Wilmington St # 2201 Raleigh, North Carolina United States 27603-2559
Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A
Asking Price Contact for pricing
NOI Net Operating Income N/A
Cap Rate N/A

Documents

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I accept the confidentiality agreement I accept the confidentiality agreement
Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.

Key facts

Building Area

Property description

Jones Lang LaSalle Americas, Inc. (“JLL”) has been retained as the exclusive sales

representative for South 40 Distribution Center (“South 40” or, the “Property”) – a 502,495

square foot infill credit anchored property located in Raleigh-Durham, North Carolina, ranked

the #1 market for real estate investment nationally by ULI and CrowdStreet (2021). The highly

infill location is approximately one (1) mile south of the Raleigh CBD and enjoys quick access to

I-40/I-440, Raleigh’s “Beltline,” offering seamless connectivity to the entire MSA.

Currently 96% leased, the Property provides investors with stable cash flows while the markto-

market of in-place rents provides an avenue for future value creation. Additionally, there

is a significant amount of outside storage on site which is extremely rare for this market. The

Property also features frontage along I-40/I-440, the primary interstate artery running through

the Raleigh-Durham market. Featuring a very diverse rent roll with credit tenancy and limited

rollover exposure, the Property is leased to name brand users such as UPS (NYSE: UPS ; S&P:

A-) through 2027 and Iron Mountain (NYSE: IRM ; Moody’s: Ba3). Since locating to the Property

in 2002, it has been an operational necessity for Iron Mountain to be proximal to the Raleigh

CBD and its local clientele, specifically the state government and individual law firms housed

within the city center. Overall, South 40 Distribution Center represents a rare opportunity to

establish scale in an irreplaceable location, at a well below-replacement-cost basis within the

extremely high-barriers-to-entry Raleigh-Durham market.

Investment highlights

LAST MILE, URBAN INFILL LOCATION

• Strategically positioned adjacent to I-40/I-440, the

primary interstate artery in the market, South 40

Distribution Center enjoys phenomenal visibility with

seamless access to all points of the Raleigh market.

• The infill site is within minutes of Downtown Raleigh

and within 10 minutes of Cary, North Raleigh, Apex,

North Hills, Garner, and Clayton, some of the fastest

growing corners of the MSA.

• Located in an Opportunity Zone, the Property is a

prime candidate for future repositioning and/or new

development given the highly sought-after infill

location.

SECURE IN-PLACE CASH FLOW FEATURING BELOW

MARKET LEASES AND CREDIT TENANCY

• 96.0% leased, infill Class B industrial product

• Strong in-place cash flows from six (6) tenants with a

healthy 7.0 years of WALT

• Significant future mark-to-market opportunity as

rents are 17% below market

• Features credit anchored tenancy

• Extremely desirable and rare outside storage

BELOW-REPLACEMENT COST ACQUISITION

• Situated on over 30 acres and just minutes from

major residential and commercial hubs, the Property

presents the opportunity to acquire a significantly

below-replacement-cost footprint of scale in an

irreplaceable location experiencing rapid economic

growth.

SIGNIFICANT INVESTMENT BY OWNERSHIP

• Current ownership has recently invested substantial

capital in exterior painting and cleaning, paving

portions of the parking lot, installing motionsensored

LED lighting, expanding the outside

storage, and “white boxing” Suites 101 & 101A which

now houses BlueSky Solutions on a fresh 10 year 6

month lease term.

Last Updated Date: 19 Jul 2021
Patrick Nally
Patrick Nally
Managing Director, Capital Markets
Broker Licenses
NC-282053
Pete Pittroff
Pete Pittroff
Senior Managing Director, Carolinas Office Co-Head
Broker Licenses
NC-163984

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Last Updated Date: 19 Jul 2021

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