IAMC News Briefs—Week of July 10, 2023
By John Salustri
CONSTRUCTION DIVE—Prologis has acquired 14 million square feet of assets from investment management firm Blackstone in a $3.1-billion deal. The logistics centers are located in 11 key industrial markets from New York State to California, all fully leased or in negotiation. Despite a reported cooling of industrial demand in the first quarter, Construction Dive reports that the deal was sweetened by the logistics market’s overall low vacancies.
https://www.constructiondive.com/news/prologis-acquires-3-billion-blackstone-portfolio-industrial-market/654145/#:~:text=Prologis%2C%20a%20San%20Francisco%2Dbased,in%20a%20%243.1%20billion%20deal.
COMMERCIAL OBSERVER—LBA Realty has sold an automated Walmart facility in the Inland Empire town of Colton, CA for $109 million, approximately $320 per square foot. A unit of Ponte Gadea USA is the new owner. The mega-retailer reportedly uses the four-year-old, 340,120-foot asset for receiving, sorting and shipping, all through automated technologies. As evidenced in the following article, industrial prices in the Inland Empire have defied slowing market trends, racking up the most sales in the nation with $1.9 billion as of May 31.
https://commercialobserver.com/2023/07/walmart-industrial-sale-california/#:~:text=Automated%20Walmart%20Center%20Sells%20for,SoCal's%20Inland%20Empire%20%E2%80%93%20Commercial%20Observer
COMMERCIAL PROPERTY EXECUTIVE—A purchase price of $112.3 million nearly doubles the value of Harvill Logistics Center in Perris, CA. The Inland Empire logistics center, now in the hands of owner MDH Partners, was sold by a joint venture of Blumenfeld Development Group and CH Realty. The asset, fully occupied by global healthcare company Cypress Medical Products, sold just two years ago for $57.5 million when the Rockefeller Group put the asset up for sale. Pacing out to 333,570 square feet, the center boasts 36-foot clear heights, two grade-level doors and 46 dock-high doors. A 7,976-foot class A office component is also part of the deal.
https://www.commercialsearch.com/news/mdh-pays-112m-for-inland-empire-logistics-center/
REBUSINESS ONLINE—First Industrial is adding to the supply of available industrial stock. The REIT has launched construction on 380,000 square feet in greater Philadelphia. Due for completion in October, the asset is located in the 425-acre First State Crossing mixed- use development and will come to market offering 40-foot clear heights, 68 dock positions and 241 trailer stalls. CBRE is handling the leasing assignment.
https://rebusinessonline.com/?s=first+industrial
SUPPLY CHAIN DIVE—US manufacturing production slipped in June to a 12-month low of 46%, as measured by the Institute for Supply Management’s (ISM) Purchasing Managers’ Index. This represents a further slippage from May, when it logged a 46.9% Index rating. When the rating dips below 50%, we’re looking at an economic contraction. Tim Fiore, chair of ISM’s Manufacturing Business Survey Committee, attributes the slippage to easing demand amidst lost confidence in a second-half economic rebound.
https://www.supplychaindive.com/news/manufacturing-pmi-ism-s-and-p-june-looming-recession-layoffs/685274/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-07-10%20Supply%20Chain%20Dive%20%5Bissue:52079%5D&utm_term=Supply%20Chain%20Dive