CenterPoint Properties has invested $112 million in industrial real estate in the Charleston metropolitan area during the last 18 months, in anticipation of the expected growth at the Port of Charleston and the tightening vacancy rates. CenterPoint recently paid $41 million for the former Piggly Wiggly distribution center in Summerville. The 616,000 square foot warehouse is near Interstate 26 and Jedburg Road. The sale makes CenterPoint one of the largest industrial real estate landlords in the Lowcountry. CenterPoint is owned by the state of California’s employee pension fund. All of CenterPoint’s investments have been located in Berkeley County.
The investment in the Jedburg corridor continues a trend to transform this stretch of Interstate 26 just north of Summerville, and builds on recent economic development in the area during the last year. The $500 million Volvo car manufacturing plant and the development of the new Sheep Island Road interchange between the Summerville and Jedburg exits have helped to drive the interest of developers to invest in the area. Also the anticipation of bigger cargo ships to the Port of Charleston is increasing the demand for larger warehouses.
Other companies investing in the Jedburg corridor include the Chicago-based Clarius Partners, and affiliate of Chinese auto parts manufacturer Wanziang American Corp. The company announced recently it was building a nearly 600,000 square foot building at the Omni Industrial Campus, across I-26 from the CenterPoint warehouse. This space currently does not have a tenant for the new building. The Charleston Trade Center has investors building up to potentially six large industrial buildings at a cost of approximately $175 million. The Keith Corporation of Charlotte and its partner Singerman Real Estate of Chicago has invested $19 million on the first speculative phase of the Charleston Trade Center.
CenterPoint’s 616,000 square foot warehouse is located on 109 acres, which shares the property with the food distributor Agro Merchants Group. CenterPoint also owns the 52 acre Jedburg Commerce Park nearby, which it acquired for $21 million in early 2016. CenterPoint also invested $50 million in two Hanahan warehouses during 2015. CenterPoint overall has combined real estate holdings of about 56.3 million square feet, which is twice as much as the total industrial space available in the Charleston region.
Source: Post & Courier, “CenterPoint sets sights on Charleston real estate market,” by John McDermott, November 27, 2016
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