Memphis, T.N. – July 24, 2020 – CBRE has facilitated the sale of 817,274-square-foot bulk warehouse industrial space in Memphis, T.N. The property is directly adjacent to the FedEx World Headquarters and the world-renowned TCP Southwind golf course. RealOp Investments recently purchased the building and is planning on a significant CapEx investment to update to modern facility requirements and rebrand the property to the “Southwind Distribution Center.”
CBRE’s Johnny Lamberson and Terry Radford represented the seller in the transaction. CBRE’s Patrick Walton will continue to lease the 8400 Winchester Road facility on behalf of the new owner, RealOp Investments.
“We are thrilled that RealOp Investments will revamp and create a large Class A industrial availability that our Memphis market needs. Located in a prime location, future tenants will benefit from the property’s proximity to an untapped labor pool to the north and being +-10 miles from the airport. We need large bulk industrial space in the Memphis market and the Southwind Distribution Center will accommodate the mass activity we are seeing on the big box front,” said Patrick Walton, senior vice president at CBRE in Memphis.
Located in the sought-after Southeast submarket in Memphis, the industrial warehouse provides direct access to Highway 385 with subsequent access to I-269, I-240, and I-55. Currently vacant, the building was previously occupied by Nike, Inc. who had operated the facility as a distribution center.The Class A facility is 100 percent air conditioned and includes a 28’ clear span height.
The new owner, RealOp Investments, is a commercial real estate and private equity investment firm based in Greenville, South Carolina. CapEx plans include interior and exterior painting, sprinkler upgrades to ESFR, lighting upgrades, and a rebranding of the facility to highlight its world-class location.
“We are pleased to enter the Memphis market with this acquisition and appreciate CBRE’s efforts throughout the transaction. This is a unique opportunity for us to acquire a significant industrial asset in an amenity-rich and supply-constrained location. We have witnessed the continued resiliency and strong demand fundamentals of the Memphis industrial market and firmly believe that it will continue its positive trajectory. We plan to continue to grow our industrial asset base both in Memphis and across the Southeast with a focus on value-add acquisitions in strong growth markets,” said Reggie Bell, CEO at RealOp Investments.
According to CBRE Research:
• More than 3.5 million sq. ft. of new construction was delivered to the market in Q2 2020, with the majority of new stock 100 percent preleased upon delivery.
• This strong demand for new bulk, Class A product has left tenants will limited to no options above 325,000 sq. ft. aside from 630,000 sq. ft. of new speculative space in Fayette County, until under construction stock delivers.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About RealOp Investments
RealOp Investments is a commercial real estate investment company founded in 2009 specializing in value-add and opportunistic acquisitions. With deep roots in the Southeast, our investment strategy spans all commercial asset classes and is based on a relationship-driven pursuit of value; not only in identifying off market opportunities, but in creating value through innovative capitalization structures, management expertise and the execution of unique strategies tailored to each asset. The firm was named the 2019 Greenville Chamber Small Business of the Year, and one of the Top Ten Fastest Growing Companies in the state of South Carolina for 2018. Learn more at www.realopinvestments.com.