The property, located in Kennewaw, GA, part of the I-75 Northwest submarket of Atlanta, was built in 1999 and purchased by Hershey shortly after, says O'Reilly. Calls made to the chocolate retailer were not returned on Thursday.
"First Industrial plans to reposition the facility to serve the distribution needs of two to three customers by reconfiguring the layout and adding more office space," said Kent Mason, regional director of First Industrial's Atlanta office, in a release. That's if the current tenant decides to move out, adds O'Reilly, who did not have authorization to discuss Hershey's plans.
[IMGCAP(2)]"There are not that many other buildings of this caliber that are available in this land constrained submarket," O'Reilly tells GlobeSt.com, citing low vacancy and higher rents as added reasons First Industrial was attracted to the asset. According to the latest CBRE market report, the Northwest submarket reports an 11.5% vacancy rate and the third highest leasing rates in Atlanta. CBRE senior vice presidents David Nixon and George Maragos and first vice president Chad Burd assisted First Industrial with the transaction.
The investment was completed through FirstCal 1, First Industrial's Development andRepositioning Joint Venture with the California State Teachers' Retirement System. The public pension fund is known as the second-largest in the US with a $164 billion portfolio.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.