Jones Lang LaSalle Incorporated : TerraCap acquires two Class A industrial buildings near Savannah for $116M

ATLANTA, Nov. 29, 2022 - JLL Capital Markets announced today that it has closed the $116 million sale of Savannah Gateway 1F & 1H (Savannah Gateway), two Class A industrial buildings totaling 1.1 million square feet in Rincon, Georgia.

JLL represented the seller, Broe Real Estate Group, in the sale to TerraCap Management, LLC.

Completed earlier this year, the buildings are 75% leased to two tenants, Lion Brand Yarn and Exel Inc. (d.b.a.) DHL. Savannah Gateway features 32'-36' clear heights, a 185' truck court, 53'-54' x 50' column spacing and 60' speed bays. Building 1F is a rear-load building with 58 dock-high doors, 135 auto spaces and 68 trailer spaces. Building 1H is a cross-dock facility with 146 dock-high doors, 296 auto spaces and 157 trailer spaces. The buildings are part of the Savannah Gateway Industrial Hub, a 2,600+ acre master-planned industrial park that is expected to consist of over 18 million square feet of industrial space once completed.

Located at 1008 and 1009 Gateway Parkway, Savannah Gateway is situated 12.7 miles from the Port of Savannah's Garden City Terminal and is minutes from Interstates 95 and 16 and Highway 21. As a result, tenants can reach major Southeastern markets, such as Atlanta, Charlotte, Orlando and Jacksonville, in under four hours. Furthermore, the property is dual rail-served by both CSX and Norfolk Southern.

Savannah Gateway benefits from its position near the Garden City Terminal, the single largest and fastest-growing container terminal in America, growing cargo volumes by 20% year-over-year. According to JLL's Savannah Industrial Insight - Q3 2022, Savannah ranks as one of the best industrial markets in the country with the lowest vacancy rate in the nation at 0.5% and one of the highest amounts of tracked tenant demand at 30 million square feet. This has led to explosive rental rate growth in the market (25.3% YOY) which is projected to continue. The market has a robust pipeline to keep up with tenant demand, however, 47% of new construction is already pre-leased or in negotiations.

The JLL Capital Markets Industrial team representing the seller was led by Senior Managing Directors Britton Burdette and Dennis Mitchell and Associate Jim Freeman.

"This sale is yet another example of the high demand for quality industrial assets in Savannah. This is being driven by the outstanding performance of the market," said Burdette. "With extremely high demand for space and nearly no availabilities, Savannah is one of the best industrial markets in the country. Investors have taken note and are targeting opportunities in the market."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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