1080 South River Boulevard
Bromley purchased 1080 South River in 1999. The 17-acre site is comprised of:
– 52,000 sq. ft. warehouse
– 2,500 sq. ft. office facility
– 150 parking spaces
It is situated in Atlanta’s primary transportation hub and home to truck terminals, freight companies, and supporting businesses. The asset has been triple-net leased to a single tenant (a $10 billion global logistics company) for 26 years, serving as their primary distribution center for the Atlanta market. The long-term lease came due in Fall 2024.
Over the past 5 years, the South River industrial hub has experienced significant market growth, driven by:
– Access to critical transportation routes.
– Ongoing infrastructure improvements.
– Growth in logistics and distribution sectors, making the area a prime location for investment and development.
The market has attracted both local and national investors, resulting in an increase in leasing activity and rental rates as businesses seek warehousing and logistics space. Bromley recognized the opportunity to mark the rent to market in Fall 2024, capitalizing on the rise in industrial demand and rental rates, and negotiated a new lease with the tenant.
Bromley successfully negotiated the lease renewal with the existing tenant, resulting in a 206% increase in the renewal rate compared to the former lease. With a market cap rate of 7%, Bromley enhanced the asset’s value by approximately $8,000,000, while retaining a high-quality, long-term tenant. The successful lease renewal further solidified Bromley’s position in a market with ongoing demand and growth potential.
