MIAMI—Hartz Mountain Industries is betting big on Atlanta. The firm just snapped up a 2.5-million-square-foot portfolio of 35 buildings in North Atlanta.

This isn't Hartz's first big move into the Southeast region. The firm recently acquired a 575,718-square-foot class A warehouse Hanes Brand occupies in Kings Mountain, NC, just west of Charlotte. Hartz also acquired a 278,586-square-foot, class A industrial property in the Baltimore-Washington Corridor at 7448 Candlewood Road in Hanover, MD.

What's driving the company to make such strong investments? The Panamex expansion.

“The Panamex expansion of the Panama Canal created additional transportation options to and from the Orient and the West Coast, making East Coast locations in large and growing areas more relevant,” says Emanuel Stern, COO and president at Hartz. “Population growth in cities like Charlotte and Atlanta make Baltimore and other markets in the Southeast more appealing for us and other companies to expand their businesses into as well.”

The North Atlanta portfolio includes three developments: Peachtree Corners I on Jimmy Carter Boulevard; Adriatic Court on Atlantic Boulevard in Norcross, GA; Peachtree Corners II on Kingston Court; and Kennestone Corners on Kennestone Circle. The portfolio is over 93% occupied. 

219 Commerce Boulevard in Charlotte is within a one day's drive of 60% of the country because of its location near Interstate 85—which is widely considered the industrial backbone of the Southeast—Interstate 77, and Interstate 40, one of the nation's largest interstates that runs from North Carolina to California. Hanes recently inked a long-term lease and completed a second expansion of 100,000 square feet.

Hartz liked these industrial properties because they are close to major interstates, the airport, and two railroad systems. What's more, the portfolio's location within a market with limited room for additional development serves as a barrier to entry for competitors.

These deals mark Hartz' first transactions in Atlanta and Charlotte and the third in the Baltimore port market. The firm's nationwide portfolio includes over 35 million square feet of warehouse/industrial, datacenter, office, retail, and hospitality assets.

Dwight Hotchkiss, national director of Industrial for Colliers, tells GlobeSt.com, he's been watching the debate over the impact of the Panama Canal on east and west coast ports. He's keeping tabs on how ports up and down the east coast have been dredging and upgrading to accommodate container traffic in anticipation of the expansion, which is  now projected to be in early to mid- 2016.

“Richmond, Jacksonville, and Charleston are anticipated to see a strong growth in the mid-Atlantic region while Houston and Mobile will in the Gulf region,” Hotchkiss says. “The Ports of Los Angeles and Long Beach have been spending billions in upgrades to maintain their dominant position in cargo trade.”