EXECUTIVE SUMMARY

On behalf of the Ownership, Jones Lang LaSalle America, Inc. (“JLL”) has been retained as the exclusive sales representative for 3851 Lakefield Drive (the “Property”) in Suwanee, Georgia – a 61,000 square foot warehouse and manufacturing facility located in one of the most infill areas of the Atlanta MSA’s largest and most sought-after submarket, the Northeast. Additionally, the parcel includes +/- 10 AC of excess land that is zoned M1 Heavy, and is suited for a 100,000 - 109,000 SF industrial building.

The Property is being offered to the market as single-tenant, short-term sale-leaseback to Florida Food Products (the “Tenant” or “FFP”) under a proposed triple net lease through the end of 2023 and will include, two (2), three (3) month extension options. Florida Food Products will be consolidating this operation into another regional facility and will be a known vacate at the end of their lease term. FFP is a leading innovator and producer of herbal, vegetable, and fruit-based clean ingredients that utilizes this facility to produce and distribute tea products for their Amelia Bay product line. This offering provides an investor an exceptionally well-located, functional warehouse/manufacturing asset with near-term cash flow and substantial long-term upside via development of the excess land in one of Atlanta’s most sought-after, high rent growth infill Atlanta locations. 

PROPERTY SPECS

INVESTMENT HIGHLIGHTS

Short term sale lease-back opportunity with excess land and highly sought-after zoning

• The Property is being offered to the market as single-tenant, short-term sale-leaseback to Florida Food Products under a proposed triple net lease at a market rent through the end of 2023 and will include, two (2), three (3) month extension options
• Florida Food Products will be consolidating this operation into another regional facility and will be a known vacate at the end of their lease term
• FFP is a leading innovator and producer of herbal, vegetable, and fruit-based clean ingredients that utilizes this facility to produce and distribute tea products for their Amelia Bay product line
• The Property resides on 14.54 gross acres with approx.10 acres of M-1 zoned, excess
  land, which is suitable for a 109,280 SF shallow-bay industrial building
• This offering provides an investor an exceptionally well-located, functional warehouse/manufacturing asset with near-term cash flow and substantial long-term upside via development of the excess land in one of Atlanta’s most sought-after, high rent growth infill Atlanta locations

Atlanta industrial market

•     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

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 150 bps 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

The Northeast infill micro market

• The immediate area surrounding the Property (the Chamblee/Doraville/Norcross micro market) has experienced accelerated rental rate growth over the past 5 years (61.6% growth over this time period or 12.3% annually)
• Vacancy rate is well below overall Northeast industrial submarket as a whole at 2.9%and has compressed 300 bps since 2017
• Home to a critical mass of institutional ownership and credit tenants that are drawn to the micro market’s accessibility to dense high-income population centers and high-quality labor
• Unlike logistics-heavy submarkets south of I-20, North Fulton/Forsyth County is driven by tenants looking for small to midsized manufacturing/warehouse space                          

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