The just-built distribution centers at 6201 Peterson Rd. in Valdosta, GA and 6400 Jefferson Metropolitan Pkwy. in McCalla, AL outside of Birmingham measure 657,600 square feet. Home Depot is occupying the buildings through an 18-year lease. The deal was brokered by Frank Fallon, executive vice president with CB Richard Ellis' Atlanta, GA office.
Mark Cosenza, Inland Real Estate's acquisitions coordinator wouldn't discuss specifics about the centers' end use, though acknowledges the Atlanta-based home improvement company refers to them as "rapid deployment centers." "This is a new distribution format Home Depot is moving to," Cosenza tells GlobeSt.com.
According to Home Depot's Q4 2007 earnings call, the company launched its rapid deployment center pilot program in Atlanta in an attempt to stock and distribute goods to area stores more quickly. Executives during the call, which took place in February 2008, said that the distribution network was launched to process faster-moving goods through more efficient supply-chain logistics. The call also hinted that more such rapid deployment centers would be developed and integrated into the Home Depot supply chain network.
As for Inland's investment in the two centers, Cosenza says the deal was attractive because the buildings are new and state-of-the art, and they contain a national credit tenant. "We have a lot of single-tenant, net-lease across our portfolios," he goes on to say. "This is one of many and we're always targeting these sale-leasebacks with high-credit tenants."
Cosenza goes on to say, however, it's not just single-credit properties that Inland wants, though he declined to discuss deals currently in the pipeline. "We're focusing on purchasing in every asset class," he adds.
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