Northmarq, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant industrial facility leased to Advanced Distributors Products, the leading producer of residential evaporator coils in the nation. The 288,000-square-foot property is located at 445 American Way in Grenada, Mississippi and serves as the distribution center for the tenant’s manufacturing plant located less than one mile east of the property. Mike Sladich and Maggie Holmes of Northmarq represented the seller, an Illinois-based industrial developer, Agracel, Inc. Typically long-term holders, Agracel, Inc. recognized a unique opportunity to sell and took advantage of the current market dynamics. The buyer was a Dallas, Texas-based REIT. The property sold for approximately $21.3 million.
“There continues to be strong investor demand for new industrial product, especially fungible warehouse space like ADP Grenada. We received a lot of interest from both institutional and private buyers, and we ultimately sold at full ask to an institution who closed in 45 days,” said Holmes, Director in Northmarq’s Atlanta, Georgia office. “At $74 per square foot, the property was placed well below replacement cost, and with construction costs still on the rise, this was an important metric to investors.”
The property was originally constructed in 2017 as an 84,000-square-foot warehouse, and at the tenant’s request, was expanded by 70 percent to its current size of 288,000 square feet. Prior to leasing the property, ADP was using part of its neighboring 379,000-square-foot manufacturing facility as warehouse and distribution space. They spent approximately $20 million moving into the new distribution center and repurposing the existing facility into a full manufacturing plant. Adjacent industrial park tenants include Novipax, Resolute Forest Products, Ice Industries and Averitt. Additionally, Milwaukee Tool is developing a new 500,000-square-foot manufacturing facility across from the site which will open in late 2022. Located between Memphis, Tennessee and Jackson, Mississippi, the property has convenient access to Interstate 55, the Grenada Municipal Airport and the Grenada Railroad.