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Press Release, April 01, 2017

ARA Acquires 850,000 SF Class A Distribution Building In Atlanta Submarket

American Realty Advisors (“ARA”), an institutional capital management firm with over $8 billion in assets under management, has acquired King Mill Distribution Center, a 846,496 square-foot Class A cross-docked distribution facility in the Atlanta submarket of McDonough, Georgia.

The building is 100-percent leased to CastleGate Logistics with a guaranty from its parent company, Wayfair.com, one of the world’s leading online destinations for home goods. Wayfair.com’s revenue surpassed $3.38 billion in 2016.

 “ARA invests in high-quality core assets with durable and accretive income returns located in dynamic submarkets across the country,” says David Hubbs, Senior Portfolio Manager at ARA.  “This acquisition is a prime example of how we execute that strategy. King Mill Distribution Center is situated in a submarket widely known for its institutional quality assets and top-tier tenants and is fully leased to a global company with rapidly growing market share.”

Hubbs also points to the strong local market as a key factor in ARA’s acquisition decision.

“King Mill Distribution Center is located within 2 miles from I-75, which is the primary route from Atlanta to Florida and a direct connection to the Port of Savannah, the nations’ fourth-largest and fastest-growing U.S. container port,” says David Willett, Senior Director, Investment Group at ARA.  “The Atlanta metro is a major logistics hub, an economic engine of the Southeast, and home to one the nation’s leading business centers.”

The region continues to attract a diverse range of industries including corporate and regional headquarters for many Fortune 1000 firms and 15 Fortune 500 companies are headquartered within the Atlanta metro, ranking just behind Houston and New York City.

Willett adds, “We were attracted to King Mill Distribution Center based on the region’s rapid growth, a healthy diversification of local industries, and the asset’s accretive in-place cash flow. We believe that the property is well-positioned to deliver long-term value to our tenant and to our investors.”

Built in 2016, the bulk distribution facility features state-of-the-art building specifications including cross-dock configuration, 185 foot deep full concrete truck courts, ESFR sprinklers, ductilcrete flooring systems, 36 foot minimum clear height, 171 dock high loading doors, four drive-in doors, abundant employee parking, and 237 trailer storage positions.

“The high quality construction and top-of-the-line material selections should result in the property maintaining its competitive advantage in the marketplace. Along with lower maintenance costs, this should drive attractive long-term returns for our investors,” continues Willett.

Hubbs adds, “Our investment in King Mill Distribution Center is consistent with ARA’s risk-adjusted core investing strategy to add in-place income growth to the portfolio with future appreciation upside potential in top-tier markets that are positioned to withstand any potential future economic shifts.”

King Mill Distribution Center is located at 130 Distribution Drive in McDonough, Georgia. Frank Fallon, Chris Riley and John Farell at CBRE represented the seller, King Mill Distribution Park, LLC, a Trammell Crow Atlanta development. 

ABOUT AMERICAN REALTY ADVISORS

With more than $8 billion in assets under management, American Realty Advisors is a leading provider of commercial real estate investment management services.  For over 28 years, ARA has managed capital for institutional investors utilizing core and value-added commingled funds and separate accounts. ARA acquires assets directly or provides equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties.

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