Panattoni Sells Industrial Assets for $112M

Irvine, Calif.-based Panattoni has pocketed $112 million on the disposition of a collection of two institutional-quality industrial properties in metropolitan Atlanta. With the assistance of JLL Capital Markets, the real estate company sold the approximately 949,200-square-foot portfolio to affiliates of New York-based LXP Industrial Trust, formerly Lexington Realty Trust.

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The two properties consist of Georgia North Business Center Building 100 in Adairsville, Ga., and Bartow Commerce Center Buildings 1 and 2 in Cartersville, Ga., both of which provide coveted proximity to Interstate 75, a leading logistical thoroughfare, as well as Hartsfield-Jackson International Airport and the Appalachian Regional Port. Panattoni developed both properties in joint ventures.

Georgia North Business Center Building 100, Adairsville, Ga. Image courtesy of JLL Capital Markets

Occupying a 19-acre site at 95 International Parkway, Georgia North 100 is an approximately 225,200-square-foot facility that made its debut in 2020. Airman USA leases 100,000 square feet of the facility, which features such amenities as tilt-wall construction and 32-foot height. Roughly 10 miles south in Cartersville, the Bartow Commerce buildings opened at 41 and 51 Beach Drive in 2021, occupying a total of 104 acres and encompassing a respective 396,000 and 328,000 square feet. Tenants at the two-building property, which offers clear height ranging from 32 to 36 feet, include Textron and Wellmade Flooring.

High on the radar

JLL Capital Markets witnessed the investment community take a keen interest in the Class A, bulk industrial portfolio Panattoni put up for grabs. As Dennis Mitchell, senior managing director, with JLL Capital Markets, said in a prepared statement, the team saw strong institutional demand for this core-plus industrial offering, due to the ability to acquire critical mass in the burgeoning Northwest Atlanta Industrial submarket and its unique profile of stability through multiple long-term leases to anchor tenants, as well as upside through leasing of vacant space.

Bartow Commerce Center Buildings 1 and 2, Cartersville, Ga. Image courtesy of JLL Capital Markets

JLL Capital Markets’ Matt Wirth, Britton Burdette and Jim Freeman joined Mitchell in representing Panattoni in the transaction.

Metropolitan Atlanta recorded more than $2.3 billion in industrial real estate sales in the fourth quarter of 2021, according to a report by Lincoln Property Co., marking the area’s largest single-quarter sales volume ever. And experts anticipate that the market will continue to be a favorite destination for industrial investor dollars.

“National and institutional investors are still the driving catalyst of Atlanta’s industrial investment sales activity, with around 80 percent of the market’s volume in the past year coming from firms outside of the state of Georgia,” according to the LPC report.