CRG Sells 700K SF Industrial Facility at The Cubes at Interstate Centre II in Savannah Market
CRG successfully leases and sells initial phase of 300-acre master-planned industrial park, capitalizing on increased demand from the Port of Savannah
SAVANNAH – CRG, the national real estate development and investment firm, has announced the sale of a 700,000-square-foot industrial warehouse at The Cubes at Interstate Centre II in Bryan County, Ga., 23 miles west of Savannah to Realty Income. Known as Building A at The Cubes at Interstate Centre II, a 300-acre development within Interstate Centre, the facility is fully leased to McKesson Medical-Surgical, a leading medical distributor.
The project served as the first vertical development of CRG’s master-planned industrial park, The Cubes at Interstate Centre II, strategically positioned to address the increased demand for industrial space being driven by the expansion of the Port of Savannah. JLL Savannah reports over 16 million square feet is under construction in the Savannah area, with more than half pre-leased and 2 million of that in fourth quarter. An additional 6 million square feet of leases are anticipated to sign by the end of fourth-quarter 2021, contributing to roughly 8 million square feet signed in the fourth quarter. In an approximately 80-million-square-feet market, this activity accounts for approximately 10% of market absorption in the fourth quarter alone. Through the first three quarters of 2021, the greater Savannah industrial market posted net absorption of 6.7 million square feet of space, which eclipsed all of 2020’s absorption. The market has zero availability of Class A space, a record low 1.1% vacancy rate as of the end of third quarter 2021 and over 25 million square feet of tenant demand.
“We anticipated tremendous interest in Building A, and its quick lease-up and sale demonstrate CRG’s ability to deliver the best product in the right market at the right time,” said Mike Demperio, partner and senior vice president of the Southeast region for CRG. “For a whole range of companies doing business in the Southeast, this site is ideal for transportation and labor. As the Port of Savannah continues to experience rapid growth and market absorption from the congested West Coast ports, The Cubes at Interstate Centre II offers much-needed proximity to the Savannah port while benefiting from lower labor costs and traffic congestion.”
Located at 1338 Interstate Blvd. in Ellabell, Georgia Building A features 36’ clear heights, an ESFR sprinkler system, 80 9’ x 10’ dock doors and four 12’ x 14’ drive-in doors. It also has 185-foot-deep truck courts, 131 trailer spaces and 225 auto spaces. CRG’s parent company Clayco served as the builder for the project and Lamar Johnson Collaborative as architect. CRG is currently constructing a 463,200-square-foot facility as its second industrial project at The Cubes at Interstate Centre II.
“We are thrilled with the initial success at the Cubes at Interstate Centre at an unmatched location like Savannah,” stated Shawn Clark, president of CRG. “Savannah has been a primary focus for our team, and with the support of strong leadership at the Georgia Port Authority in executing its long-term strategic vision for increasing capacity at the Port of Savannah, it has only further strengthened our conviction in the market.”
The Port of Savannah is now the nation’s third-largest port gateway in the United States following the expansion project that deepened the Port’s navigation channel from 42’ to 47’ in 2021. The port saw 5.3 million TEUs of container activity in fiscal year 2021, 900,000 more than in FY 2020, an increase of 20%. The port recently announced new plans to continue investment in its future with plans to accommodate an additional 1.6 million TEUs (25% annual capacity increase) by June 2022.
Jason Ovadia of JLL represented McKesson Medical-Surgical. Chris Tomasulo, Ryan Hoyt, and Bennett Rudder of JLL represented CRG. The disposition team led by Esmael Hill includes Net Lease Group team members Philip Wickstrom, Rick Ross, Mark Lewinsohn and Ross Wood, who assisted throughout the transaction from construction to completion. In addition to leading the disposition, Net Lease Group arranged the equity capitalization for the construction and development of Building A at Interstate Centre II.
In Georgia, CRG is also developing The Cubes at Bridgeport, a 500-acre master-planned industrial park that can accommodate 8.5 million square feet in the South I-85 submarket of Atlanta, and The Cubes at River Park, a 1,006,000-square-foot speculative industrial building in Butts County, located in Atlanta’s Interstate 75 South submarket. CRG has constructed or has planned developments of its Cubes projects totaling over 7 million square feet throughout the state of Georgia. CRG has planned projects, broken ground or completed over 43 million square feet of Cubes Projects throughout the U.S, 20 million square feet of which has already been delivered.
CRG is a privately held real estate development firm that has developed more than 9,000 acres of land and delivered over 200 million square feet of commercial, industrial, institutional and multifamily assets exceeding $12 billion in value. CRG leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Columbus, Southern California, St. Louis and Philadelphia. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next generation users led to the creation of its industrial brand, The Cubes, and its multifamily brand, Chapter. For more information, visit CRG’s website at www.realcrg.com.
About The Cubes
The Cubes is a North American industrial brand owned and developed by CRG. The Cubes represents CRG’s philosophy of developing for the future and anticipating the enhanced needs of tomorrow’s modern industrial user. The Cubes are designed with an emphasis on sustainability, and they implement state-of-the-art specifications, including maximum clear heights, dock doors and trailer storage to keep pace with the shift to consumer-centric logistic strategies. The Cubes are located on strategic sites that take into consideration both logistics and labor supply, always with the end user in mind.
Clayco is a full-service, turnkey real estate development, master planning, architecture, engineering and construction firm that delivers clients across North America the highest quality solutions on time, on budget, and above and beyond expectations. With over $2 billion in revenue for 2017, Clayco specializes in the “art and science of building,” providing fast track, efficient solutions for industrial, commercial, institutional and residential related building projects. For more information visit www.claycorp.com.