Hartz Mountain Drops $55M on Charlotte Industrial Asset
- Apr 23, 2015
New Jersey-based Hartz Mountain Industries Inc. has acquired the one-million-square-foot RSI Distribution Center in Metro Charlotte, paying $55.7 million. Cushman & Wakefield | Talhimer’s Capital Markets Group represented seller The Keith Corp. in the property’s sale, aided by the company’s Charlotte office.
The Class A industrial facility, located on 82 acres of the 680-acre Lincoln County Industrial Park, is fully leased to RSI Home Products, the world’s largest manufacturer of laminate kitchen and bath cabinetry. The tenant has a new 15-year triple-net lease on the property through August 2029. The lease structure includes a 1.4 percent annual escalation between years one and five, followed by an annual increase of 1.5 percent through year 15. The property’s net operating income will clock in at $3,349,769 in commercial year 2015.
The tenant’s revenues have more than quadrupled since 2004, when it opened its first location in Lincoln County Industrial Park, reaching $500 million in fiscal year 2013. As a result, RSI Distribution Center has expanded three times. The most recent expansion, executed in 2014, added 225,000 square feet. According to Cushman & Wakefield | Talhimer, RSI is considering an additional 100,000-square-foot expansion.
As a result of its multi-phase development, the distribution facility is suited for future multi-tenant use. Individual phases range between 200,000 square feet and 350,000 square feet. Strategically located within the 4.4-million-square-foot Lincoln County Industrial Park, the facility has optimal access to I-85, the Southeast’s primary industrial route and I-40, the Southern United States’ most important east-west distribution corridor via the US Highway 321 Inter-Connector.
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Images courtesy of Cushman & Wakefield | Talhimer