JLL Income Property Trust Pays $54M for Atlanta Asset

Northeast Atlanta Distribution Center. Image courtesy of JLL Income Property Trust

JLL Income Property Trust has acquired Northeast Atlanta Distribution Center, an industrial complex totaling 458,000 square feet in the Northeast Atlanta submarket. In an off-market transaction, the company paid approximately $54 million for the Class A single-building property in Jefferson, Ga.

The tilt-up concrete warehouse on nearly 55 acres at 200 Thomas Parkway was completed in 2016. Northeast Atlanta Distribution Center last traded last December for $25.7 million, according to Jackson County records.

Northeast Atlanta Distribution Center is leased to a sole tenant, with a seven-year remaining lease term as well as a 3 percent annual rent escalation. Based on JLL data, the Northeast Atlanta industrial submarket closed the first quarter of the year with a 3.8 percent vacancy rate, 40-basis-points below the metro’s average of 4.2 percent.

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Demand fueled leasing activity during the same period across the Atlanta metro. Tenants have signed leases for 11.5 million square feet of industrial space, with six large-block transactions accounting for nearly one-third of the first-quarter total (3.4 million square feet), according to a recent JLL report.

In January, CRG inked a full-building lease at The Cubes at Bridgeport, a 560-acre business park in Moreland, Ga. The warehouse totaling 560,000 square feet was delivered in mid-2021. As of March, the Atlanta market had 11.7 million square feet of industrial projects underway, representing 2.2 percent of the total stock, with an additional 4.2 percent of the overall inventory in the planning stages, CommercialEdge data shows.