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MEMPHIS-Rock-Tenn Co. is relocating its local Alliance Display subsidiary to a larger, more efficient building. The Norcross, GA-based publicly traded company has signed a lease agreement with ProLogis for 160,000 sf of a 420,000-sf, seven-year-old industrial building at 5750 Challenge Dr.Rock-Tenn is a manufacturer of packaging products, merchandising displays, and recycled paperboard. Alliance’s broker, King Commercial Realty president Jeff Graham tells GlobeSt.com the property is just around the corner from Alliance’s existing facility at 4061 Hickory Hill Rd., which is owned by New York Life. The ProLogis space is only 5,000 sf larger than Alliance’s existing location, but its more efficient layout effectively increases its useful space by at least 40,000 sf, says Graham. The ProLogis property has 32-foot ceilings and is cross-docked, says Graham, while Alliance’s existing space has 24-foot ceilings and no cross-docking.Graham declined to reveal the negotiated lease rate on the transaction or the lease term. The going rate for that type of space in the Memphis market is about $2.60 per sf per year, according to local sources. At that rate, the value of a five-year deal would be about $2.1 million.Graham, based in Jacksonville, FL, was assisted in the transaction by Treat Macdonald of Crump Commercial in Memphis. Both King Commercial and Crump Commercial are affiliated with Corfac International.A locally based ProLogis leasing agent declined comment on the transaction, saying he is not allowed to speak directly with the media. The company’s media representative did not return a phone call seeking additional details.

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