Marketing Presentation

Transcription

1 Marketing Presentation 1200 Oakley Industrial Boulevard Fairburn, GA Presented to: Kent Mason Cassie Hanavich Mike Chambers Wesley Budd Managing Director Senior Vice President

2 Contents I. EXECUTIVE SUMMARY Primary Objective Team Deals Done Notable Distances II. MARKETING RECOMMENDATIONS Marketing Plan Projected Deal Terms Competitive Properties Recent Lease Comparables III. SAMPLE FLYER IV. WHY HIRE US? Why Hire Us? Broker Resumes Team Bulk Lease Transactions Information is deemed from reliable sources. No warranty is made as to its accuracy.

3 Section I Executive Summary

4 Primary Objective Executive Summary NAI Brannen Goddard ( NAIBG ) is pleased to present the Marketing Proposal to Prologis ( Owner ) for 1200 Oakley Industrial Boulevard ( Property ). We are committed to providing you with the most professional marketing services in the industry. From our conversations and general experience, we believe your primary objectives are to: Aggressively and professionally market the Property to the largest pool of qualified users. SITE Ensure national and local brokers, consultants, state agencies and users are consistently aware of the project and its unique position within the broader industrial market. Mississippi Tennessee Alabama SITE Atlanta Georgia South Carolina North Carolina Negotiate the most favorable terms on behalf of Owner to facilitate a transaction in the shortest period of time. Close deals!!! Florida

5 Executive Summary Team Deals Done SITE

6 Notable Distances Executive Summary NORFOLK SOUTHERN INTERMODAL FACILITY 30 MILES 22.5 MILES 22 MILES HARTSFIELD- JACKSON ATLANTA INTERNATIONAL AIRPORT CSX INTERMODAL FACILITY SITE 15 MILES MILES 75

7 Section II Marketing Recommendations

8 Marketing Plan Marketing Recommendations Positioning of Property and Marketing Strategy Location, location, location! Position the property as the highest quality, close-in Class A, building on the market. Highlight the property s location compared to competing properties. Relentlessly track bulk users in the market and their unique requirements and how we can meet them. Expose the project to our exclusive database of national brokers, corporate service executives, consultants and users on an ongoing basis! Gorilla market by cold calling and attacking known tenants in, or soon to be in, the market. No team in Atlanta does this better. Contact the most active brokers in Atlanta on an ongoing basis to ensure 1200 Oakley Industrial Boulevard is at the top of their client s tour list. Invite a select group of top producing brokers for a building tour/lunch. Meet systematically with the County, State, and Atlanta Economic Development Authorities. Provide updated labor statistics to project team in preparation for deal negotiation. The team is the Atlanta market representative for NAI s East Coast Logistics team and NAI s major market group. The group s sole mission is to track bulk users for our owners. We have monthly calls and an annual meeting to discuss trends in the market and specifically track major deals in the market and distribution initiatives of the major space users in the county. Information from the team led to our initial conversation with Smuckers, which aided in our ability to complete the lease deal for DCT on Oakley Industrial Boulevard and will allow us to have the same success for Prologis. No team has closed more bulk lease deals in the metro Atlanta market!

9 Marketing Plan Marketing Recommendations Market Conditions VACANCY AVERAGE RENTAL RATE The Atlanta industrial market ended the second quarter 2018 with a vacancy rate of 6.8%. This vacancy rate represented a 0.2 percentage point decrease over the previous quarter, when the rate was 7.0%. This decrease in vacancy rate occurred in a quarter where Atlanta saw 3,644,733 square feet in positive net absorption and 2,457,951 square feet in deliveries. At the end of second quarter 2018, there was 18,617,857 square feet under construction in the Atlanta industrial market. 6.8% NET ABSORPTION LEASING ACTIVITY 46.5 Million square feet of vacant industrial space 3,644,733 SF YTD net absorption reached 6,918,002 square feet 4,798,373 SF A 52% decrease from the previous quarter from previous qtr from previous year from previous qtr from previous year from previous qtr from previous year DELIVERIES $4.93 PSF A 2.9% increase from the previous quarter ($4.79/SF) 2,475,926 SF 13 Buildings completed UNDER CONSTRUCTION 20,101,002 SF 48 Buildings in progress from previous qtr from previous year from previous qtr from previous year from previous qtr from previous year

10 Marketing Plan Marketing Recommendations Positives 1200 Oakely Industrial Boulevard will be the best located building in the competitive set for distribution. The I-85 South submarket consistently proves to be a competitive market in Atlanta for overall transportation costs. The I-85 South market has become an active e-commerce and data center cluster market Oakley Industrial Boulevard is located 1.8 miles from the CXS Fairburn Intermodal and 15 miles from Hartsfield Jackson International Airport. Prologis has a well-earned national reputation for building quality products and being deal makers. Take advantage of the cost certainty of the Prologis Clear Lease Negatives Perceived labor shortage. Metro Atlanta s unemployment is now down to 3.8%. UPS will initially hire 2,000 employees for the new facility. ASOS will hire 1,600 new employees on South Fulton Parkway. Employers concerns are growing in this area. We will provide a detailed labor study for the project showing how users employment needs will be met.

11 Projected Deal Terms Marketing Recommendations Base Rental Rates Quote $3.95/SF NNN base rent. Prologis Clear Lease Point out the advantages/cost certainty of the Prologis Clear Lease Rental Rate Escalation 3% Per year. Push rental rate growth. Lease Terms Five to ten years. Concessions Case-by-case basis, but no more than ½ month per lease year free outside the term. Tenant Size One (1) tenant for the vacant space. Tenant Improvement $1.00 per square foot.

12 Competitive Properties Marketing Recommendations NO. ADDRESS CROSS CLEAR BUILDING BUILDING SIZE AVAILABILITY RENTAL RATE EXPENSES DOCK HEIGHT DEPTH OWNER SUBJECT PROPERTY SITE Southcreek Building I 1200 Oakley Industrial Boulevard Fairburn, GA ,794 (301,152 vacancy) Jan-19 $3.95? Yes 36' 420' Prologis Logistics Center at Interstate West 440 Interstate West Parkway Austell, GA Douglas Hill Business Center 757 Douglas Hill Road Lithia Springs, GA I-20 West Distribution Center 1050 Preston Boulevard Lithia Springs, GA ,440 Immediate $3.75 $0.75 Yes 36' 520' 295,768 Negotiable $3.75 $1.08 No 32' 310'1" 499,320 Jun-18 $3.80 $0.76 Yes 36' 425' WPT Prologis IDI Logistics 425 Hartman Road Austell, GA ,620 Immediate $3.75 $0.84 Yes 32' 420' Morgan Stanley 105 Kendall Park Lane Atlanta, GA ,600 Immediate $3.40 $0.95 No 32' 300' LaSalle Camp Creek Business Center 4505 North Commerce Drive Atlanta, GA Royal 85 Business Center 3625 Royal South Parkway Atlanta, GA SouthPark 5150 Oakley Industrial Fairburn, GA ,960 Immediate $3.85 $1.00 Yes 32' 520' 304,320 Apr-18 $3.90 $0.85 No 36' 350' 292,088 Immediate $3.95 $0.75 No 32' 311' Duke Crow Holdings Industrial Clarion/Seefried

13 Competitive Properties Marketing Recommendations CROSS CLEAR BUILDING NO. ADDRESS BUILDING SIZE AVAILABILITY RENTAL RATE EXPENSES OWNER DOCK HEIGHT DEPTH Fairburn Logistics Center 2000 Logistics Center Drive Fairburn, GA Coweta Industrial Park 755 Coweta Industrial Parkway Newnan, GA Creekside Distribution Center 2110 Lawrence Avenue East Point, GA ,625 Immediate $3.75 $0.84 Yes 36' 470' 299,520 Apr-18 TBD $0.85 No 32' 360' 538,500 Immediate $3.85 $0.52 No 32' 315' RREEF Pattillo Industrial Real Estate Solution Property Group

14 Competitive Properties Marketing Recommendations SITE

15 Recent Lease Comparables Marketing Recommendations NO. PROPERTY TENANT OWNER/ DEVELOPER SIZE/SF RATE/SF TERM LEASE EXECUTION TI ESCALATION 6180 Bluffington Road Atlanta, GA Future Forwarding Lincoln Property Company 362,880 $ mo. 03/01/18 $ % 5290 Old Dixie Highway Forest Park, GA Lanter Distributing Hartz Mountain Industries, Inc. 226,239 $ mo. 05/01/17 $ % 7310 Oakley Industrial Boulevard Union City, GA XPO Logistics Exeter Property Group 316,320 $ mo. 04/01/17 $ % 5395 Oakley Industrial Boulevard Fairburn, GA Ainsworth Pet Nutrition Exeter Property Group 271,000 $ mo. 12/01/ % 3201 Centre Parkway Atlanta, GA Kingswere Furniture Duke Realty Corporation 202,950 $ mo. 06/02/ % 3201 Centre Parkway Atlanta, GA Ashley Furniture Duke Realty Corporation 202,950 $ /01/ Old Dixie Highway Forest Park, GA Jacobson Companies Seefried 373,900 $ mo. 01/19/16 $ % 7225 Goodson Road Union City, GA Interface Americas The Carlyle Group 370,000 $ mo. 01/15/16 $ % 7280 Oakley Industrial Boulevard Fairburn, GA IntegraCore Exeter Property Group 304,000 $ mo. 05/01/15 $ % 4800 Coates Drive Fairburn, GA Smucker Sales and Distribution LIT/Hodges Industrial 289,106 $ mo. 03/06/ Southside Industrial Parkway Atlanta, GA Crane Worldwide James Campbell Company LLC 213,794 $ mo. 01/01/15 $ % 4200 N Commerce Drive East Point, GA Amazon.com Duke Realty Corporation 301,200 $ mo. 05/01/14 $ %

16 Recent Lease Comparables Marketing Recommendations NO. PROPERTY TENANT OWNER/ DEVELOPER SIZE/SF RATE/SF TERM LEASE EXECUTION TI ESCALATION 3909 N Commerce Drive East Point, GA Dick's Sporting Goods Duke Realty Corporation 256,600 $ mo. 04/01/ % 3500 S Corporate Parkway Forest Park, GA McLane Company McLane Company 229,412 $ mo. 09/11/13 $ % 4795 Coates Drive Fairburn, GA Exel Logistics Prologis 399,158 $ mo. 05/01/ Oakley Industrial Boulevard Fairburn, GA Peachtree Logistics Exeter Property Group 277,500 $ mo. 04/08/ Old Dixie Road Atlanta, GA Towne Air Freight/Carnes Colony Realty Partners 246,200 $ mo. 03/08/13 $ % 4100 N Commerce Drive East Point, GA Kuehne + Nagel Duke Realty Corporation 212,000 $ mo. 03/01/ % 1200 Oakley Industrial Boulevard Fairburn, GA Mobis Parts America DCT Industrial Trust 301,152 $ mo. 01/01/ % 5165 Kennedy Road Forest Park, GA All South Warehouse Prologis 234,200 $ mo. 07/01/12 $ Fayetteville Road Fairburn, GA Nestle Purina Petcare MDH Partners, LLC 279,276 $ mo. 04/02/ % 7795 Spence Road Fairburn, GA PPG Pittsburg Paints 5400 Oakley Llc 285,600 $ mo. 04/01/12 $ % 7300 Oakley Industrial Boulevard Fairburn, GA New Breed Logistics GLP US 243,000 $ mo. 01/01/12 $2.60

17 Recent Lease Comparables Marketing Recommendations

18 Section III Sample Flyer

19 301,152 SF Cross-Dock Distribution Building for Lease 301,152 SF Cross-Dock Distribution Building for Lease Notable Distances Savannah, Georgia Charleston, South Carolina 225 miles 300 miles Southcreek Distribution Center I 1200 Oakley Industrial Boulevard Fairburn, Georgia LOCATION Convenient access to I miles to I-85, exit at Highway miles outside of I miles from CSX Intermodal facility Jacksonville, Florida Mobile, Alabama New Orleans, Louisiana Miami, Florida NAI Brannen Goddard Mike Chambers Managing Director mchambers@naibg.com miles 308 miles 448 miles 656 miles NAI Brannen Goddard Wesley Budd Vice President wbudd@naibg.com CSX/BNSF Intermodal Facility Bohannon Rd 1.8 miles to Intermodal Facility Creekwood Dr SITE Oakley Ind. Blvd Exit FACILITY 301,152 SF available 4,112 SF office 32 minimum clear height 40 wide x 42 deep column spacing 79 dock doors (35 with levelers) 3 drive-in doors (2 oversized) ESFR sprinkler system 1,000 amps, 277/480 volts power 4 x 8 acrylic skylights 139 marked auto parking spaces No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to error and omissions. No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to error and omissions.

20 301,152 SF Cross-Dock Distribution Building for Lease NAI Brannen Goddard Nathan Anderson President / Principal nanderson@naibg.com NAI Brannen Goddard Chris Irby Senior Vice President cirby@naibg.com Prologis Ryan Hoyt Vice President, Leasing Officer rhoyt@prologis.com NAI Brannen Goddard Nathan Anderson President / Principal nanderson@naibg.com NAI Brannen Goddard Chris Irby Senior Vice President cirby@naibg.com Prologis Ryan Hoyt Vice President, Leasing Officer rhoyt@prologis.com No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to error and omissions.

21 Section IV Why Hire Us?

22 Why Hire Us? We have strategically assembled a marketing team which will allow the Owner to leverage each member s unique capabilities and focus by their expertise. Top Atlanta Industrial Brokers Experienced Marketing Team: Team s combined industrial real estate experience of over 75 years in completing over 100 million square feet of industrial leasing and sales transactions in Metro Atlanta and throughout the US will provide Owner with a seasoned proven marketing team. They are annually ranked as Top 10 industrial brokers in Atlanta. Successful Track Record in Product Type: The Marketing Team has extensive experience in leasing and selling larger industrial properties, both in and outside Atlanta representing local, regional, and national owners and users. A sample of current and past assignments transactions includes: OTHER LANDLORDS REPRESENTED Prologis Jadow Realty Rooker Portfolio DCT Industrial UBS Portfolio Mimms Portfolio Ridgeline GE Portfolio Why Hire Us? DCT PORTFOLIO DEALS REPRESENTING LANDLORD Smuckers: SC Johnson: Mobis: Owens-Corning: Freshpoint/Sysco: PROLOGIS DEALS REPRESENTED United Natural Foods, Inc.: United Natrual Foods, Inc. (expansion): IBA S&I, Inc. Laird Plastics, Inc.: 556,800 SF, Fairburn, Georgia 504,000 SF, Fairburn, Georgia 301,152 SF, Fairburn, Georgia 200,352, Fairburn, Georgia 99,552 SF, Fairburn, Georgia 589,870 SF, Lancaster, Texas 118,030 SF, Lancaster, Texas 74,587 SF, Atlanta, Georgia 25,121 SF, Atlanta, Georgia High Street IDI Blackstone Cabot Panattoni Majestic Realty

23 D. Michael Chambers Why Hire Us? MANAGING DIRECTOR Michael Chambers has over thirty-two years of commercial real estate experience representing clients in sales, purchases, build-to-suits, development, leasehold acquisitions and consulting. He is actively involved in logistics corporate service activities throughout the United States. REPRESENTATIVE CLIENTS CORPORATE USERS Allied Van Lines Atlanta Bonded Warehouse ARCO Design/Build BMC Bridgestone/Firestone Chevron Chemical Co. Colgate-Palmolive Company Con-Way Transportation OWNERS/DEVELOPERS Blackstone Cabot DCT Exeter First Industrial Realty Trust High Street Realty Company Hershey Foods, Corp. IBA International Multi-Foods International Paper Co. Lockheed Martin McKesson Corporation Mondi Bags USA NFI/NDC HSA R.E.A.D. IDI Industrial Jadow Realty John W. Rooker & Associates Ridgeline Property Group RREEF Sara Lee Stanley-Bostitch Steelcase, Inc. The Clorox Company United Natural Foods US Food Service W.W. Grainger Wagner Industries Panattoni The Prudential True North Investments Woodmont AFFILIATIONS STATE OF GEORGIA Licensed Real Estate Agent ATLANTA COMMERCIAL BOARD OF REALTORS Life Member GEORGIA ASSOCIATION OF REALTORS Member NATIONAL ASSOCIATION OF REALTORS Member NATIONAL ASSOCIATION OF CORPORATE REAL ESTATE EXECUTIVES (NACORE) Member ATLANTA CHAMBER OF COMMERCE Member WAREHOUSE EDUCATION & RESEARCH COUNCIL Member ACCOMPLISHMENTS ATLANTA COMMERCIAL BOARD MILLION DOLLAR CLUB Silver Phoenix Award Recipient 25+ Years in the Million Dollar Club Phoenix Award Recipient 10+ Years in the Million Dollar Club Top Ten Industrial Producer 1994, 1997, 2000, 2001, 2004, 2009, 2010 #2 Industrial Producer, 1997 NAI GLOBAL Top Producer, 2007, 2017 Top Producing Team, 2014, 2017 Top Initiator, 2014 Elite Performer , Logistics Council Regional Director Major Markets and East Coast Logistics Group Deal of the Year, 2007 Hall of Fame COSTAR POWER BROKER AWARD , 2012, 2013, PROLOGIS BROKER OF THE YEAR EDUCATION UNIVERSITY OF GEORGIA Athens, Georgia Bachelor of Business Administration, Real Estate/Finance

24 Wesley Budd Why Hire Us? SENIOR VICE PRESIDENT Industrial Specialist phone: Wesley Budd is a Senior Vice President at NAI Brannen Goddard and specializes in industrial services. He focuses on representing industrial landlords and tenants with leasing and marketing of all industrial property types, including warehouses and distribution centers. He applies an integrated business approach that combines site selection, advisory services, and consulting with exceptional market expertise and insight. Some of Wesley s specialties include airport logistics freight forwarding, air cargo and all logistics needs for and around the Hartsfield-Jackson Atlanta International Airport. He also specializes in site selection for bulk distribution space for retailers and e-commerce users. Wesley strictly focuses on the industrial market in Georgia, allowing him to specialize on the area. REPRESENTATIVE TRANSACTIONS CLIENT Amerisource Bergen Kichler Lighting Warehouse Basics Thriftbooks Hydro Systems Century Fire Protection OSC Automotive Clean Earth Books National Nail TYPE SQUARE FEET Lease 347,000 Lease 240,000 Lease 180,000 Lease 157,000 Sale 157,000 Lease 125,000 Lease 106,000 Lease 76,000 Lease 50,000 ACCOMPLISHMENTS CBRE National Rising Star of the Year, 2017 Atlanta Young Broker of the Year, 2016 AFFILIATIONS STATE OF GEORGIA Licensed Real Estate Agent ATLANTA COMMERCIAL BOARD OF REALTORS Member YOUNG COUNCIL OF REALTORS Mentor EDUCATION EMORY UNIVERSITY Atlanta, Georgia Bachelor of Arts in Political Science and Economics REPRESENTATIVE CLIENTS Agrium Airgroup Express C&K Plastics Century Fire Protection Clean Earth Books CR England Hydro Systems IDI Kichler Lighting National Nail OSC Automotive Panattoni Prologis Thriftbooks Warehouse Basics

25 Team Bulk Lease Transactions Why Hire Us? Sample transactions 300,000 square feet and above include: NO. TENANT/BUYER/SELLER SIZE (SF) LOCATION NO. TENANT/BUYER/SELLER SIZE (SF) LOCATION 1 Mimms Investments 821,000 SF East Point, GA 18 Atlanta Regional Distribution Center 409,374 SF East Point, GA 2 True North Investments 807,143 SF Morrow, GA 19 Hershey Foods Corp. 404,513 SF Kennesaw, GA 3 Colgate-Palmolive Company 744,331 SF Lithia Springs, GA 20 Atlanta Bonded Warehouse Corporation 404,513 SF Kennesaw, GA 4 J.M. Boles Family L.P. 720,000 SF East Point, GA 21 Leggett and Platt 400,800 SF Atlanta, GA 5 Sylvan Road, LLC 700,000 SF Atlanta, GA 22 United Natural Foods, Inc. 393,580 SF Sarasota, FL 6 United Natural Foods, Inc. 675,000 SF York, PA 23 Atlanta Bonded Warehouse Corporation 368,931 SF Kennesaw, GA 7 Clearwater Paper Corporation 672,000 SF Shelby, NC 24 United Natural Foods, Inc. 358,932 SF Auburn, WA 8 United Natural Foods, Inc. 589,870 SF Lancaster, TX 25 Lund International 356,000 SF Suwanee, GA 9 Smuckers Sales & Distribution Company 556,800 SF Fairburn, GA 26 Rheem Sales Company, Inc. 354,000 SF McDonough, GA 10 United Natural Foods, Inc. 553,800 SF Aurora, CO 27 Benore Logistic Systems, Inc. 349,788 SF Greenville, SC 11 Shippers Warehouse 538,636 SF Austell, GA 28 Staples 344,932 SF Austell, GA 12 True North Investments 515,429 SF Morrow, GA 29 Corporate Express Office Products, Inc. 344,932 SF Austell, GA Oak Grove, LLC 514,461 SF Morrow, GA 30 Atlanta Bonded Warehouse Corporation 312,500 SF Acworth, GA 14 Louis Dreyfus 514,461 SF Morrow, GA 31 United Natural Foods, Inc. 311,793 SF Atlanta, GA 15 S.C. Johnson & Son 504,000 SF Fairburn, GA 32 Kuehne & Nagel, Inc. 302,500 SF McDonough, GA 16 Quaker Oats 496,000 SF Atlanta, GA 33 Mobis Parts America, LLC 301,152 SF Fairburn, GA 17 D & H Distributing Company 458,000 SF Newnan, GA

26 Mike Chambers Managing Director Wesley Budd Senior Vice President Glenridge Connector, Suite 1100 Atlanta, Georgia, USA naibg.com