EXECUTIVE SUMMARY

On behalf of Ownership, Jones Lang LaSalle America, Inc. (“JLL”) has been retained as the exclusive sales representative for Havertys Distribution Center (the “Property”) – an 807,990 SF infill bulk distribution center located in Braselton, Georgia. The Property is 100% leased to Haverty Furniture Companies, Inc. (NYSE: HVT | 2022 Rev: $1.05B) with 10.8 years of term remaining and an in-place rent that sits 40% below market, giving an investor the opportunity to acquire the asset well below replacement cost with major upside at rollover. The Property features 36' clear height, fully air-conditioned space and 180' - 190' truck courts. This site is a mission-critical build-to-suit for Havertys and their largest of seven distribution centers in the country.

The Property has high-visibility signage along I-85, providing direct access to Atlanta and the greater East Coast. The asset is surrounded by institutional ownership and robust credit tenancy including Amazon, Whole Foods Market, Williams Sonoma, FedEx, Petco, Carter’s, ULINE, and Hitachi. Braselton is the most infill bulk segment of the Northeast submarket and has high barriers to entry due to the limited industrial-zoned land. Braselton is part of the Northeast submarket, the largest submarket in Atlanta, and has been considered the most “Core” for multiple cycles. The Northeast submarket remains a significant driving force behind Atlanta's industrial market performance with over 2.8 MSF of leases signed in Q1 2023, representing 38% of the overall Atlanta market. The Northeast leads the market in construction activity with nearly 55% of Q1's speculative completions leased at delivery. 

PROPERTY SPECS

INVESTMENT HIGHLIGHTS

Atlanta Market Overview

•  Average NNN rental rates reached an all-time high in Q1 2023 at $6.17 PSF
  • 31.3% year-over-year increase
• Trailing 12-month net absorption of 25 MSF, representing 3.8% of current inventory
  • Net absorption has outpaced deliveries by over 15 MSF in the past 36 months
• Slowdown in groundbreakings will limit future supply, increasing demand and rental rate growth
• Over 55 MSF of active tenant requirements in the market, up 5.2% YoY from 2021
  •  5th nationally for tenant demand as a percent of market inventory (2022 YE)
• 4.5% current vacancy rate
  • Vacancy has seen a 340 bps decrease over the past 3 years

  2022 YE NATIONAL INDUSTRIAL DEMAND

Northeast Submarket - Atlanta's Largest and Most Sought After

• The largest and most active submarket with 28.3% of Atlanta's total inventory (186 MSF)
  • 2.8 MSF of leases signed in Q1 2023, representing 38% of the Atlanta market
• Vacancy has dropped 150bps since Q1 2021
• Largest amount of industrial labor jobs in Atlanta
  • Second largest supply of affordable labor
• Leads the market in construction activity with 55% of Q1's speculative completions leased at delivery
• Currently 8.8 MSF of tenant requirements focused solely on the Northeast submarket (125 KSF - 800 KSF)
• Home to the NE Georgia Inland Port, scheduled to complete in 2025/2026
  • Further increase tenant demand and decrease truck congestion
• I-85 North - critical thoroughfare connecting Atlanta to the Eastern Seaboard 

Braselton Micro Market

• Braselton - Infill bulk segment of the Northeast submarket
  • Only five (5) existing, one (1) under construction, and (1) proposed modern bulk assets (700,00+ SF) that are equally or more infill than the Property in the Northeast submarket
• Limited industrial zoned land - capping new supply
  • Minimal deliveries in 2022 (461 KSF) compared to the overall submarket (8.8 MSF)
• Currently 2.4% vacant with an average annual rent growth of 8.62% since 2010 
  • Below the Atlanta vacancy rate of 4.50% and greater than its average 5.73% annual rent growth since 2010
• Immediate access to Atlanta and the highest-density population centers in the submarket
  • Population of 703,000 within a 30-minute drive
  • 346,000 workers within a 30-minute drive 

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