Case Study
Overview
Foundry Commercial represented a private capital owner of a fully occupied, single tenant 77,160 SF warehouse facility on 18± acres.
Location
Kinston, NC
Foundry’s IAG team represented a private capital owner of a fully occupied, single tenant 77,160 SF warehouse facility on ±18 acres in Kinston, NC, 75 miles east of Raleigh. Amazon.com recently signed a 5-year net lease with (3) 5-year renewal options, and had invested over $16 million in capital improvements in the property.
CHALLENGES:
- Amazon had recently announced that they were planning to downsize some of their existing warehouse facilities after years of rapid expansion across the county.
- Kinston, NC was not a major market that institutional investors were familiar with.
- The high interest rate environment made it difficult to source debt.
STRATEGY:
- Foundry launched a broad marketing campaign promoting Amazon’s significant investment in the property indicating their long-term commitment to that location.
- Foundry also highlighted this property as a last-mile delivery facility that was critical to serving as the last stop for faster deliveries for many rural communities east of Kinston, NC, who struggle to get efficient coverage from the postal service.
- Foundry emphasized that the property was being offered at a significant discount to replacement costs, especially when considering the recently expanded 8 AC paved parking lot and all new HVAC units in the 100% fully air-conditioned facility.
RESULTS:
- Foundry created a competitive bid process resulting in multiple offers from qualified investors.
- The property successfully closed with an out-of-state, all-cash buyer and 45-day contracts