Cousins/Weeks Breaks Ground on 3M-SF Distribution Park

The first five-building, 416,000-sf phase of the planned 2.9-million-sf King Mill Distribution Park in this Atlanta suburb is scheduled to open in first quarter 2006, says Cousins Industrial Division president Forrest Robinson. The first phase can be expanded quickly to 790,000 sf. Robinson calls the project "a unique opportunity" for the partnership to grow value for shareholders.

In a prepared statement, Robinson didn't disclose the hard and soft costs of the project. But area construction sources tell GlobeSt.com the venture will probably come in at about $65 per sf hard cost. That would place the 416,000-sf first phase at about $27 million and the entire 2.9-million-sf campus at about $189 million.

King Mill would dwarf the planned 1.24-million-sf distribution center Atlanta-based Home Depot is undertaking at ProLogis properties in Greenwood Industrial Park, also in McDonough, Henry County, industrial brokers familiar with both projects tell GlobeSt.com. The 182-acre Cousins/Weeks venture is at the intersection of Highway 42/23 at King Mill Road.

Another strong Henry County industrial player in McDonough is Duke Realty Corp. which has a total 1.06 million sf of distribution space at two centers in Liberty Industrial Park. One property is 759,300 sf; the other, 301,200 sf.

"Cousins is a first-class developer and competitor," Sam O'Bryant, senior vice president of Duke Realty's Industrial Group in Atlanta, tells GlobeSt.com. "Their entry into the industrial market will only reinforce the quality standards already offered by Atlanta's top developers. At about half a billion sf, there is sufficient size that the market can absorb additional players, especially well-capitalized quality competitors."

O'Bryant adds, "We wish them success and hope that there is sufficient demand that we can all see our fair share of deals."

"King Mill is an excellent start to our partnership with Ray Weeks, and we look forward to continuing the momentum we have established since announcing this project over three months ago," Robinson says.

Adds Weeks, "With King Mill, we expect to set a new standard for developing first-class industrial properties in the Atlanta market."

He says "the continued improvement in the Atlanta industrial market and the economic expansion in Henry County currently combine for a favorable environment for industrial development and leasing."

According to the latest statistics from Atlanta-based Colliers Cauble Co., leasing activity in metro Atlanta's 491-million-sf industrial real estate inventory--one of the largest in the country--shows no sign of slackening. The first quarter ended with improved vacancy of 12.8%, down 1.2% from this time last year.

Build-to-suits and tenant users in the 20,000-sf to 100,000-sf category are driving the industrial market, according to data prepared by Colliers Cauble research director Scott Amoson. Net absorption in all of 2004 was a record 11 million sf. An estimated three million sf of net absorption was posted in the first quarter of this year.

On the King Mill project, Conlan Co. of Marietta is the general contractor. Randall Paulson Architects of Roswell is the project architect.

Cousins/Weeks was formed in April 2004. Weeks Properties, controlled by Ray Weeks, merged with Duke Realty Investments, now Duke Realty Corp., in 1999. Cousins' Robinson spent 20 years with Weeks Corp., including seven years president and chief operating officer.