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MEMPHIS-Charlotte, NC-based Allegiance Realty Corp. has acquired Airport Business Park, a 235,006-sf office building for $13.75 million. Built in 1985, the park consists of eight single-story office buildings and is located directly adjacent to the FedEx “Super Hub” and near the Memphis International Airport. FedEx is the lead tenant in the property occupying 60,000 sf.

The seller, Chicago-based LaSalle Investment Management, was represented by Transwestern Atlanta office investment services brokers and managing directors Kevin Markwordt and Jon Kleinberg. Markwordt tells GlobeSt.com that, in the past, the property had been primarily leased to FedEx. In recent years, however, FedEx had been moving out of space, which was leased to new tenants. The property is 64% occupied. “LaSalle felt it was the right time to sell,” Markwordt says.

One of the properties attributes is its location. It has direct access to the FedEx “Super Hub” and is in close proximity to the airport, and Interstates 240, 55 and 40. “As development slows due to skyrocketing construction costs, well-developed, well-located assets such as Airport Business Park will continue to gain favor with institutional investors due to their escalating returns, value versus replacement cost and competitive position to attract and retain tenants.”

Markwordt adds that Allegiance Realty is a value-add buyer that plans to lease up the vacant space. “Allegiance looks to buy value add properties at a good price with plans to add value to the property and sell it,” he says.

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