Two huge spec builds planned by industrial developer Distribution Realty Group (DRG)
Stateline North I Memphis –
Distribution Realty Group LLC (DRG), an industrial real estate firm with offices in Nashville and Chicago, has filed a permit to build a 1-million-square-foot industrial warehouse. And the company has plans for more large facilities in the area.
The spec industrial build, called Stateline North I, will be the third Memphis-area warehouse for the company, and its largest project yet. DRG acquired 187 acres adjacent to its Stateline West distribution center; that land is set aside for two 1-million-square-foot spec warehouses, plus a smaller, yet also substantial, facility.
“We really like the market, and we’re actively looking for other opportunities,” said William Tanner, VP of capital deployment at DRG. “We like this [project]. It’s in our Stateline Park, which is in Shelby County and DeSoto County. Stateline West [an 800,000-square-foot warehouse built by DRG last year] is right below it. We’ve got the opportunity to build two more buildings in the park. Another 1-million-square-foot [warehouse] and a 265,000-square-foot [warehouse].”
Stateline North I will feature a 40-foot clear height, 185 feet of depth on the truck court, 192 dock doors, 245 trailer stalls, and 646 car parking spaces, according to Tanner. The project is within a short drive of the FedEx World Hub.
He said that “all options are on the table” when it comes to the sale of the development. Memphis’ industrial market has seen continuous low vacancy rates, growing rental rates, and low unemployment. Local brokers have told MBJ that projects are selling in the midst of construction as there is a scramble for Class A industrial.
Tanner said that his firm believes in the Memphis market.
“We like where we are. We like doing business [in the Memphis-area],” he said. “And obviously, we look to continue to do more.”