EXECUTIVE SUMMARY

On behalf of Ownership, Jones Lang LaSalle America, Inc. (“JLL”) has been retained as the exclusive sales representative for Forsyth Business Park (or “The Property”) – a warehouse totaling 78,832 square feet situated in Cumming, Georgia directly off Highway 9 near the high-demand GA-400 corridor with convenient access to Atlanta. The Property is 100% leased to 10 tenants with a weighted average lease term (WALT) of 4.5 years.

The offering has average in-place rents of $13.15 PSF, when not factoring in the 22,419 SF suite, with all net leases providing limited responsibilities to the landlord. The average suite size is 6,268 SF, after excluding the 22,419 SF suite, with a balanced rollover schedule limiting vacancy risk exposure. The Property has a diversified set of tenants involved in a wide array of industries including fitness, data, party rentals, HVAC, countertops, and more. Current ownership has invested roughly over $3.3M of capital work into the Property over the past 2 years including a brand new roof overlay, HVAC units, a parking lot extension, and more.

Located in North Fulton/Forsyth submarket, one of Atlanta’s most supply constrained submarkets, the Property offers investors a rare opportunity to own an irreplaceable industrial building with significant in-place rents and escalations providing a stable income.

PROPERTY SPECS

INVESTMENT HIGHLIGHTS

Sought After Product Type  

• Over $3.3M of capital invested by current ownership increasing overall property value
  • Brand new roof overlay with 10-year warranty and HVAC systems
  • Recently extended parking lot by another 23 parking spaces
• Well-maintained functional product that caters to smaller tenants
  • 10 suites with an average suite size of 6,268 SF when excluding the 22,419 SF suite
  • Rear-load configuration with 9 dock-high doors and 6 drive-in doors
  • Reinforced concrete ideal for maintaining low capital expenditure exposure
    over the long term

Prime Logistical Location  

• The Property is ideally positioned with immediate access to major thoroughfares
  • 0.2 miles away from Highway 9 and 1.3 miles away from Highway 141
• Conveniently located 1.5 miles away from GA-400
• 1.9 miles from Highway 20
• 35-minute drive from downtown Atlanta
• The submarket poses high barriers to entry due to the North Georgia Mountains and Lake Lanier

Strong Tenant Fundamentals With Downside Protection   

• Strong in-place rents with excellent leasing history demonstrating upside potential
  • $13.15 PSF average in-place rents when excluding the 22,419 SF suite
• Balanced rollover schedule – no single year contains more than 29.2% of rollover throughout the next 10 years
• 4.5 years of WALT remaining
• 100% of tenants are on Net Leases
• Diversified rent roll with the biggest tenant occupying 28.4% of the Property
  • Rest of the tenants occupy below 13%

Exceptional Submarket Fundamentals - North Fulton/Forsyth 

• Forsyth County is one of the wealthiest and fastest growing counties in the United States
  • The surrounding area within a 15-minute drive from the Property has seen an astonishing 62% population growth since 2010
  • The county is projected to almost double its population by 2050 with 173,814 people projected to be part of the county
  • Average household income of $180,762 in 2023
• North Fulton/Forsyth submarket had an average NNN rent of $10.89 PSF in 2023
  • 24.17% year over year rent growth
• With 15 MSF of inventory, the submarket is extremely supply constrained due to limited
  amount of land entitled for industrial
  • Experienced 10% growth in inventory over the past 5 years
  • 30,000 SF currently under development which will further put pressure on rent growth
• 3.2% total vacancy in 2023
  • Below 5% vacancy consecutively for the past 3 years

CONTACT