SPG and Investor Wayne Mason Selling 546,000-SF Building Plus 30 Acres Matt Gove
With a five-year lease with The Home Depot (NYSE: HD) in hand and the likelihood of renewal high, Atlanta’s Solution Property Group (SPG) is shopping its first building at Braselton Distribution Center, a planned 12-building industrial park northeast of Atlanta. The sales package includes a 546,000-square-foot industrial building and approximately 30 additional acres of land that Home Depot is currently using for trailer parking.
SPG and financial partner Wayne Mason have hired Trammell Crow Co.’s Tony Kepano, who represented Home Depot in the original lease agreement, to market the project for sale. Kepano would not discuss anticipated pricing but market experts say the package could go anywhere from $25 million to $30 million or slightly more, assuming Home Depot will renew its lease after five years.
Kepano also wouldn’t commit his client to a renewal but did say the project has a number of unique features -- including the expansive 30-acre lot that holds 527 trailers -- that would be difficult to duplicate if Big Orange decided to look elsewhere.
Kepano also said that interest in the package has been primarily institutional -- REITs, pension fund advisors and insurance companies.
Mal Hill, a partner with SPG, wouldn’t comment on the potential sale of the Home Depot building but said his firm is considering what to do next at Braselton Distribution Center.
“With the success in leasing the first building and other big deals that have been done out here, we’re looking at it hard,” Hill said.
The main hurdle for SPG, Hill said, is that there’s still a lot of infrastructure work to be done in the park before they can start developing another building.
“We really need to finish our major road and utility infrastructure for the park, so it may be mid-year before we get started on another building,” he said.