EXECUTIVE SUMMARY

On behalf of Ownership, Jones Lang LaSalle America, Inc. (“JLL”) has been retained as the exclusive sales representative for BlueLinx Atlanta IOS (the “Property”) – a 585,637 RBA low-coverage / industrial outdoor storage ("IOS") distribution facility situated on 64.7 gross acres with approximately 55 usable acres. The Property is 100% leased to BlueLinx (NYSE: BXC | 2022 Rev: $4.5B) with 9.3 years of term remaining and in-place rent that is 49% below market, providing an investor with stable long-term cash flow as well as significant upside via mark-to-market at rollover with a truly exceptional going-in basis. The Property features a 28’ clear height, an active on-site CSX rail, a fully paved yard, ample storage sheds, and approximately 4.5 additional acres for potential expansion or future development.

The Property is located within a 1-minute drive from the Gwinnett County Airport (LZU) and 3 minutes from the GA-316 & US-29 interchange. The asset is also located 12 minutes from I-85, which acts as the region’s logistical lynchpin connecting three major distribution corridors: I-85, I-20, and I-285, which provide vital distribution connectivity to Atlanta’s major population centers and the greater East Coast. Lawrenceville is home to many institutional owners and credit tenants that are drawn to its infill location for last-mile distribution and close proximity to Atlanta’s wealthiest suburbs. The area serves as a logistical keystone between Atlanta and Athens, as well as the Carolinas, and Mid-Atlantic. Lawrenceville is part of the Northeast submarket, the largest and most sought-after submarket in Atlanta, which had over 2.8 MSF of industrial leases signed in Q1 2023, representing 38% of the overall leasing activity in the broader Atlanta market.

PROPERTY SPECS

INVESTMENT HIGHLIGHTS

Strategic mission critical location

• BlueLinx has operated at this location for over 25 years and the plant is critically linked to CSX rail that is 24/7 operable and essential to the Tenant’s business
  • Receives inbound materials that are packaged and stored on site then shipped outbound via trucks to customers
• 1 minute drive from Gwinnett County Airport (LZU)
  • Regional airport servicing the entire Southeast and most of the eastern seaboard 
• 3 minute drive to the GA-316 & US-29 interchange
  
  • Major economic and transportation corridor between Athens, Atlanta, and the greater East Coast
• 12 minute drive from I-85
  
  • Providing vital distribution connectivity to Atlanta’s major population centers
• Close proximity to credit tenants and institutional owners of both traditional big-box industrial assets as well as major truck terminal and outdoor storage / low-coverage operations
  
  • Tenants are drawn to its infill location for last-mile distribution, a highly sought-after labor force, and its close proximity to Atlanta’s wealthiest suburbs 

High-quality tenancy - low-coverage/IOS site

• BlueLinx (NYSE: BXC | 2022 Rev: $4.5B) is a leading wholesale distributor of residential and commercial building products with both branded and private-label products such as lumber, panels, engineered wood, siding, millwork and industrial products
• Headquartered in suburban Atlanta with over 50 locations and more than 700 trucks delivering to 50 states servicing approximately 15,000 customers that include major retailers such as Home Depot, Lowe’s and other national home centers, pro dealers, and regional and local dealers and industrial manufacturers
• With 9.3 years of term on an absolute net lease, the opportunity provides a stable long-term cash flow with major future upside
• Absolute net lease with all maintenance, repair and replacements falling on Tenant provides investor with highly passive income with no landlord responsibilities
• Tenant recently invested $1.4M into the Property, replacing the roof in 2022 which includes a 15-year warranty

Stable income stream with significant future upside and protected downside risk 

• With a 49% below market rent of $3.72 annually per RBA, there is a significant mark-to-market opportunity at the end of BlueLinx’s lease
  • BlueLinx possesses one (1), ten (10) year renewal option at FMV
  • Recent comparable leases in infill Atlanta submarkets have averaged $6000 - $8500 per usable acre per month over the last 12 months 
• Residual value of land protects from downside risk if BlueLinx chose not to renew 
• Approximately 4.5 acres of additional land for potential further expansion, development, or outdoor storage                                

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