Goldman Sachs Pays $101M for Savannah Industrial Property

November 22, 2024

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The warehouse is part of a 10 million-square-foot park.

Exterior shot of Rockingham Farms Building 9, an industrial building in Savannah, Ga. — Rockingham Farms Building 9 features a 40-foot clear height. *Image courtesy of JLL*

Goldman Sachs Alternatives has paid $100.6 million for Rockingham Farms Building 9, a 942,210-square-foot, Class A distribution center in Savannah, Ga., Scannell Properties sold the asset with the assistance of JLL.

Completed in 2023, the building is at 125 Feldspar Drive in the Rockingham Farms Logistics Park, a new 10 million-square-foot industrial park located 8.3 miles from the Port of Savannah’s Garden City Terminal. The property is also close to Interstates 95 and 16, having direct access to Veterans Parkway along with other major Savannah corridors.

Fully leased to four tenants, the cross-dock building features a 40-foot clear height, 185-foot truck court depth, 183 dock-high doors and 7,500 square feet of office space. The property has ample trailer and auto parking.

JLL Senior Managing Directors Britton Burdette, Matt Wirth and Dennis Mitchell along with Senior Director Jim Freeman led the Investment Sales and Advisory team representing the seller.

In May, Scannell sold another property in the industrial park with assistance from the same JLL team. DWS acquired Rockingham Farms Building 10, a 413,230-square-foot bulk-distribution center for $50.8 million. That facility was also completed last year.

Earlier in the year, Scannell partnered with INDUS Realty Trust Inc. for the development of Rockingham Farms Commerce Center, a 1 million-square-foot campus within the same park. The first phase of the development will include two 284,580-square-foot buildings.

Growing industrial market

Savannah continues to experience growth, driven by the record cargo volumes at the Port of Savannah as well as multimillion-dollar expansion projects in the area and extensive logistical connectivity, Burdette said in prepared remarks.

The metro’s industrial market continues to have positive absorption. Savannah ended the third quarter with an overall vacancy rate of 9.0 percent despite more than 2.4 million square feet of new construction deliveries during that three-month interval, according to a Cushman & Wakefield report. Leasing activity outpaced 2023 with 8.3 million square feet year-to-date compared to 7.8 million square feet in same quarter a year ago.

There was a total of 25.1 million square feet of development underway at the end of September, with more than 15 million square feet attributed to the new $5.5 billion Hyundai EV plant or its suppliers and the remainder representing speculative warehouse space. Cushman & Wakefield noted nearly 30 percent of the spec space was already preleased.