Tempus Realty Acquires $78M Industrial Portfolio

The Carlstar Group sold its entire national manufacturing portfolio. Image courtesy of Tempus Realty Partners

Tempus Realty Partners has acquired a four-property industrial portfolio for $78 million. The sale-leaseback deal was closed with The Carlstar Group, a leading supplier of tires and wheels. The assets represent the seller’s entire national manufacturing capabilities.

The properties total 1.4 million square feet and are located in Aiken, S.C., Clinton, Tenn., Jackson, Tenn., and Slinger, Wis., occupying roughly 209 acres.

This acquisition marks Tempus Realty Partners’ fifth deal of the year, bringing its investments to $233 million. In February, the company partnered with Westrock Coffee on a 530,000-square-foot distribution facility in Conway, Ark. The asset is expected come online before the end of the year and will support the coffee company’s production, packaging and distribution needs.

A national portfolio

The manufacturing facility in Slinger is at 250 Weil Drive. It totals 154,315 square feet and is on approximately 16 acres, CommercialEdge data shows.

The Aiken industrial building is at 23 Windham Blvd. in South Carolina’s Augusta market. It is a 420,682-square-foot facility and features 210 parking spaces. The asset is on a 36-acre property.

According to the same source, the Clinton facility is at 520 Jd. Yarnell Industrial Parkway. It is a 336,782-square-foot asset on 102 acres of land. This property previously traded for $12 million in 2000.

The Tennessee facility is at 2500 Dr. F.E. Wright Drive in Jackson, and totals roughly 517,000 square feet.

Manufacturing investments hold strong

According to a recent Cushman & Wakefield report, manufacturing facilities continue to attract strong investment, both public and private. Since 2020, these investments amounted to $470 billion in private money, while the federal government added another $220 billion. This brought manufacturing jobs to roughly 13 million as of midyear 2023, the highest level the sector has seen since 2008.

The same report shows that 80 million square feet of manufacturing space was under construction as of June, which will not be enough to sustain demand in the long term. Roughly half of that will be owner-occupied, while another quarter of the space are build-to-suit projects. This is a relatively small uptick in manufacturing inventory, which sits at around 3.6 billion rentable square feet nationwide, representing 21 percent of the entire industrial inventory.