Hillwood Sells 2 Memphis Industrial Assets

January 17, 2025

The duo is part of a 6.8 million-square-foot industrial park.

Exterior shot of the industrial facility at 11384 Progress Way in Olive Branch, Miss. — The 382,032-square-foot industrial facility at 11384 Progress Way is fully leased to Buske Logistics. Image courtesy of Robinson Weeks Partners

Robinson Weeks Partners has acquired two industrial buildings spanning 831,974 square feet in Olive Branch, Miss., a Memphis, Tenn., submarket. Hillwood previously owned the asset duo, according to CommercialEdge data. Cushman & Wakefield represented the seller.

This purchase marked Robinson Weeks’ first purchase under its Industrial Acquisition Fund. The investment vehicle, together with the Robinson Weeks Industrial Opportunity Fund IV, garnered commitments of roughly $152 million in 2024.

The two facilities are part of the 10-building Legacy Park, a 6.8 million-square-foot industrial campus developed by Hillwood. The property is roughly 3 miles from the Olive Branch Airport, while the Memphis International Airport is about 16 miles northeast. A BNSF railway station operates some 10 miles away.

Encompassing 448,942 square feet, the cross-dock property at 11363 Progress Way features 36-foot clear heights while the 383,032-square-foot rear-load building at 11384 Progress Way includes 32-foot clear heights. The duo comprises a combined total of 138 dock doors, 514 auto parking spots and 182 trailer spaces.

Both assets were fully leased at the time of sale. The tenant roster includes Wheeler Fleet Solutions, which operates an e-commerce fulfillment and distribution center, and Buske Logistics, a warehousing and 3PL company.

Cushman & Wakefield Vice Chairman Stewart Calhoun and Executive Director Casey Masters represented Hillwood.

Robinson Weeks’ growing industrial footprint

Since Robinson Weeks closed its first real estate fund in 2010, the company has acquired and developed 22.2 million square feet of Class A industrial warehouse space valued at $2 billion.

One of its developments is in North Charleston, S.C. The firm broke ground on the 635,328-square-foot industrial project dubbed Charleston Global Crossing early last year. At the time, it was considered the largest speculative industrial project in the city.

Memphis industrial assets sell for less as pipeline ramps up

Metro Memphis’ industrial investment volume amounted to $362 million during the first 11 months of 2024, according to a CommercialEdge report. Assets traded for $57 per square foot—significantly below the national average of $128 per square foot. The market posted the lowest prices across the Southeast, below Charlotte, S.C., ($79 per square foot) and Atlanta ($115 per square foot).

Meanwhile, the metro’s industrial pipeline totaled 10.5 million square feet. That represented 3.5 percent of total stock, an index which ranked third nationally. Only Phoenix (5.7 percent) and Kansas City, Mo., (3.9 percent) surpassed the Home of the Blues.

As the market’s construction activity ramped up, the industrial vacancy rate stood at 8.6 percent in November, 110 basis points higher than the national average, the report reveals. Industrial rents grew by 4.6 percent year-over-year through November, below the national average growth of 6.9 percent during the same period.

One of the market’s significant industrial deals of last year was also a portfolio transaction. Faropoint purchased a 1.7 million-square-foot, 16-building industrial portfolio in Memphis and Jacksonville, Fla., in August 2024. The collection, which included 12 assets in Memphis, sold for $105 million in an off-market transaction.