Exeter Property Group of Conshohocken PA Purchases Nine Building Portfolio

A Pennsylvania industrial investor capped its December with another big deal, this time buying a nine-building warehouse and distribution portfolio next to the Memphis International Airport.

Exeter Property Group of Conshohocken, Pennsylvania, paid $44 million for 1.1 million square feet spread across the nine buildings.

Exeter adds to the more than 16 million square feet of industrial space it owns in the Memphis metropolitan area. With the increased popularity of online shopping, warehouses and distribution centers used to transfer orders into small shipments for doorstep delivery have been rising in demand. Industrial property near airports and other transportation hubs are particularly desirable.

Earlier in the month, Exeter paid $195 million for a 1.15 million-square-foot, newly built dry warehouse and cold storage distribution center in Centralia, Washington, about 25 miles south of Olympia. The building is leased to Providence, Rhode Island-based United Natural Foods, one of the largest wholesale companies in North America.

With the Memphis deal, Exeter picks up buildings that are mostly fully leased, one building at just above 86% leased.

For Faropoint, the deal meant a hefty return after just two and a half years of owning them. In 2017, the investor paid $33.1 million. New leasing helped increase occupancy and the value.

The area where the buildings are located contains the largest concentration of industrial space in the greater Memphis area with 103 million square feet. Vacancy is up to 8% but still below its 10-year historical average.

Here are the addresses of the buildings Faropoint sold:

• 3474 Winchester Road
• 3510 Winchester Road
• 3570 Winchester Road
• 3644 Winchester Road
• 3422-3584 Prescott Blvd.
• 3500 Air Center Cove
• 3560 Air Center Cove
• 3300 Jet Cove
• 3677-3710 MIAC Drive

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