Allstate, Trammel Plan 1-75 Spec Industrial

ATLANTA—Allstate and Trammel Crow Company just acquired a 44-acre site in the Interstate 75 South Atlanta submarket. The companies plan to develop King Mill Distribution Park, an 846,496-square-foot Class A speculative industrial building, on the site.  

The news comes at the same time that a programmatic venture with The Carlyle Group, Oakmont Industrial Group acquired a 35-acre land parcel in Atlanta's Interstate 85 South industrial submarket. The venture is constructing a 370,000-rentable-square-foot spec industrial building slated for delivery in early fall 2015.

“I-75 is the robust interstate that connects Henry County to the larger Atlanta Metro area to the north and also serves as a gateway for distribution to the dynamic and expanding Florida population centers and the Port of Savannah to the south,” says Mark Dishaw, senior vice president of Trammell's Atlanta Business Unit. “Due to its location, this area has proven to be one of the best logistical locations for distributors in the Southeastern US, and is home to many major corporations—Home Depot, Georgia Pacific, Whirlpool, Toys R Us, Kimberly Clark and CEVA Logistics, to name a few.”

King Mill Distribution Park promises product flexibility with an existing pad-ready site designed for logistics and corporate users. The industrial building will feature 36-foot clear building heights, trailer storage and employee vehicle parking, ingress/egress at two separate entrances, and a design that can accommodate multiple tenants.

“Given where we are in the real estate cycle and overall economic recovery, we believe building new industrial product in strong markets positions Allstate well to achieve attractive returns,” says Edgar Alvarado, head of Real Estate Equity at Allstate.  The site is sits at the Henry County segment of the Interstate 75 South industrial submarket with access to Interstate 75, the full GA 155 Interchange, as well as access south on Interstate 75 via Billy Gardner Parkway.

Construction is expected to begin in early second quarter 2015 and be complete by the end of the year. CBRE Global Investors, an investment advisor, advised Allstate and Trammel on the deal.

“We are thrilled to partner with a strong national developer like Trammell Crow Company,” say Jeff Torto and Mike Everly of CBRE Global Investors, co-portfolio managers for the Allstate separate account. “With the King Mill Distribution Park, we are able to participate in the development of a state-of-the-art distribution product in the robust Atlanta market that has strong growth prospects and limited competitive supply.”

Curtis Spencer president, IMS Worldwide in Houston, tells GlobeSt.com we may see a surge in multi-tenant buildings or campuses, where several companies combine distribution/fulfillment operations and share technology, docking space, and labor.

“These buildings and campuses are flexible and can accommodate changing space requirements, so they are a good option for growing businesses,” Spencer says. “Centers and campuses, often run by 3PLs, need to be accessible to rail and road networks. The opportunity is that they range in size and can be located in smaller regional hubs that serve both local and national markets.”