Local Speculation Builds Beginning in Earnest
Thursday, December 10th 2015
SAVANNAH, GA – With area industrial vacancy rates at historical lows, speculative building is beginning to pick up as developers — still smarting from losses incurred in the recession of 2008-2010 — jump cautiously back into the game.
The latest is California-based Panattoni Development Co. and its equity partner, PCCP LLC.
The two have formed a joint venture to buy a 33-acre land parcel in Westport Business Park in Garden City to build a 312,000-square-foot industrial distribution center.
The center, which is expected to be complete by August, will consist of a cross-dock distribution center featuring 32-foot clear ceiling heights with 94 dock doors, 52-by-60-foot stage bays, trailer spaces and 77 car parking spaces.
“We are looking forward to embarking on our second equity investment with Panattoni, a best-in-class developer of industrial properties throughout the nation,” said John Randall, managing director with PCCP. “Based on the local market fundamentals and high demand for quality facilities, we anticipate this property will generate a good amount of interest from large corporate users.”
Randall pointed to the fact the vacancy rate in the Savannah industrial market has declined from just under 6 percent a year ago to less than 2 percent at the end of September.
Dayne Pryor, a partner at Panattoni, agreed.
“We see a significant opportunity to develop in a market with less than 2 percent vacancy and with record-breaking port growth,” Pryor said, adding that his company is working locally with Cliff Dales of Colliers International to lease the facility.
Located on Dean Forest Road, the site is less than two miles from Georgia Ports’ Garden City Terminal and Savannah/Hilton Head International Airport.
This is Panattoni’s first speculative venture in the Savannah area, according to Dales, but not its first local project.
“They are currently building a 1.1 million-square-foot e-commerce fulfillment center for JLA Home in Northport,” he said.
NorthPort Industrial Park is near the junction of Interstate 95 and Ga. 21 in Savannah.
ABOUT THE PARTNERS
PCCP, LLC is a real estate finance and investment management firm with offices in New York, San Francisco and Los Angeles.
Focused on commercial real estate debt and equity investments. PCCP has approximately $5.5 billion in assets under management on behalf of institutional investors. Since its inception in 1998, PCCP has raised, invested and managed approximately $10.5 billion of institutional capital through a series of investment vehicles, including private equity funds, separate accounts and joint ventures.
Panattoni Development Company, Inc. is a privately held, full-service development company founded in 1986. The firm has completed in excess of 200 million square feet of commercial projects worldwide.
Panattoni has developed industrial, office and flex facilities in 278 cities in 29 states and nine countries. Headquartered in Newport Beach, Calif., the company maintains offices throughout the United States, Canada and Europe.
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