Machine Investment Group (“Machine”), a real estate investment platform based in New York that focuses on opportunistic, distressed and special situations investments across the United States, recently purchased two industrial properties in partnership with LRC Properties (“LRC”). The two acquisitions, completed in separate off-market transactions, include the following:
- 600 Whittaker Road, a 469,830-square-foot bulk distribution center located in the Northside submarket of Jacksonville, FL, purchased for $29.6 million.
- 2 Dell Parkway in Nashville, a 288,860-square-foot warehouse and office property in the Airport submarket of Nashville, TN with significant development rights, purchased for $36.23 million.
As part of their value-add business plans, Machine and LRC will execute a capital improvement and repositioning plan including value enhancements to 600 Whittaker Road; and a renovation of 2 Dell Parkway. The renovation of 2 Dell Parkway will include expanding its total rentable square footage to approximately 368,000 square feet by converting office space to additional industrial space and creating new Class A shallow bay warehouse space. The existing mini-bulk distribution center at 2 Dell Parkway is currently fully leased with Amazon as the anchor tenant.
“This was a unique opportunity to add two opportunistic industrial assets to our growing portfolio, both located within leading national distribution hub markets,” notes Eric Rosenthal, Managing Partner of Machine. “These latest acquisitions typify our focus on market selection; given the strength of the industrial sector throughout the Southeast, with demand far outpacing supply for large, modernized warehouse and distribution space, 600 Whittaker Road and 2 Dell Parkway are poised for continued success. We are pleased to announce these strategic acquisitions in collaboration with our partner LRC and look forward to enhancing both assets through our planned repositioning and renovation programs.”
About 600 Whittaker Road
600 Whittaker Road is a 469,830 square foot bulk distribution center with excellent physical attributes situated in Jacksonville’s Northside Imeson Industrial Park, a 1,500-acre master planned development. The well-located property has a strategic location within Jacksonville, offering local and regional distribution access through road, air, marine and rail transportation channels. The property is the only rail-served vacancy in the tight Jacksonville industrial market and offers significant trailer parking, a competitive advantage over similar industrial product in the market. Additional attractive physical attributes of the facility include 32′ clear heights, 54 loading docks, appealing column spacing and truck courts as well as 14 rail-served loading docks. The Machine and LRC business plan includes capital improvement and value enhancement of the site.
About 2 Dell Parkway
2 Dell Parkway is a 288,860 square foot industrial property that is situated on a 32.7-acre lot within the Nashville region’s Airport submarket, a prime last mile, infill area located adjacent to Nashville International Airport and near downtown. The Airport submarket is one of the tightest industrial markets in the Southeast with robust tenant demand due to an extremely low vacancy and lack of available land for new development. Machine and LRC plan to reposition the property by creating new shallow bay, last mile warehouse distribution space, and expanding its existing warehouse area through the conversion of office space to industrial use.
The Nashville industrial market is currently experiencing strong tailwinds driven by the overall geographic migration to the Southeast as well as significant corporate relocations. Additionally, 72% of the U.S. population is within a two-day drive of Nashville, making it one of the strongest industrial hubs in the country and a gateway to the rest of the Southeast.
Recent Machine transactions include the $208 million recapitalization of a hospitality portfolio located in Hollywood, CA, that will help complete the currently under-construction Thompson Hollywood Hotel and the tommie Hollywood Hotel, as well as the $54.5 million acquisition of Stevens Creek Executive Park in San Jose, California, a redevelopment play in a stellar Silicon Valley location.
About Machine Investment Group
Machine Investment Group is a real estate investment platform focused on opportunistic, distressed and special situations across the United States. Founded by former senior executives from Garrison Investment Group, Andy Kwon and Eric Rosenthal, Machine invests primarily in the middle market, where its reputation as a reliable counterparty, its solutions-oriented approach and extensive lender relationships distinguishes the firm from the competition. Machine’s strict risk discipline, institutional operating processes and well-developed sourcing network has been cycle-tested and is designed to deliver consistent, opportunistic returns while minimizing losses.
LRC Properties is an experienced commercial real estate firm focused on East Coast commercial real estate investments. Headquartered in the New York City metro area, with offices in Charlotte and Durham, North Carolina and Charleston, SC, LRC concentrates in acquiring core plus and value add properties in growth markets. LRC Properties focuses on creating above-market returns for its investment partners by providing substantial value to the properties it purchases through operations, repositioning, restructuring and redeveloping, utilizing a “hands-on” management approach. LRC Properties also strives to make a positive impact in the communities where it owns property, through its vision and social programming. For more information on LRC Properties, visit www.lrcprop.com.
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