25 & 27 Artley Road
25 & 27 ARTLEY ROAD
Executive Summary
25 & 27 Artley Road is a logistics park located in the heart of Savannah, Georgia. The complex is composed of 11 industrial buildings with a strategic location, just a few kilometers from the port of Savannah, one of the most important ports in the United States and currently number 4 in the ranking of quantity of containers. Currently the property is 100% occupied, and represents a unique opportunity to acquire an industrial asset, in a market with high entry barriers for this type of asset, with NNN rental contracts and based on a lower value at $ 5 per square meter.
The business plan consists of the general renovation of the 11 buildings to raise the rent values of the same tenants or attract new tenants as the current contracts expire. The goal in this case is to increase the rate of return of the complex and achieve a greater distribution of dividends, achieve refinancing of the asset in year 3, withdrawing almost all of the investment made and generate a sale of the asset for the fifth year.
18,51%
Annual rate of return
Composed of income, refinancing and asset sales.4%
Annual dividend
Income annually distributed as a result of the operation of the building.$20.6 M
Sale price
$25.5 M
Purchase price
Feb 2019
Purchase date
7 years
Hold period
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Market: Savannah, Georgia
• During 2019, the vacancy of the Savannah industrial market remained at a historical record of less than 2.1%, representing the fifth consecutive year with vacancies below 3%.
• Savannah was installed as a logistics and manufacturing hub, thanks both to the quality of the state’s workforce and the excellent state pro-market policies. In recent years, large manufacturing corporations such as Mitsubishi Power Systems and Gulfstream Aerospace have set up.
• The strategic location of the Port of Savannah, one of the fastest growing ports in the United States, offers a complete logistics package for companies entering this market.
Savannah
Savannah’s industrial market, broadly speaking, consists of approximately 7 million square meters of industrial park. It has a workforce of more than 900,000 people and a diversified and thriving economy. The market is divided into 5 large areas, the most relevant being Crossroads and Dean Forest (where the acquired complex is located) due to its proximity to the port. These areas not only present a strategic proximity to the port of Savannah, but are also only 15 minutes from the Airport and major highways.
Trader, track record
Saxum Real Estate is a private company dedicated to the investment and development of real estate assets. With a long track record, Saxum has built a top-notch real estate company, with roots in entrepreneurship and creativity. Saxum specializes in the development of business opportunities with added value, located in urban areas. Leveraging its vertically integrated platform, Saxum has the ability to implement unique tactics to create value and optimize real estate strategies, at every step of the life cycle of its projects.
With a highly talented and experienced team of professionals, they focus on all areas to apply their superior market knowledge and strong local relationships to the end. To identify and create value in all business cycles.
B&D Holdings is a real estate investment and management company, developed as a branch of the Segal family’s Family Office. Almost all real estate ventures are capitalized from said institution, individually by all family members and through family associations with other companies. The ease of access to capital and the constant participation of all members of the company in all transactions allowed them to have a dynamic and efficient execution model in all the businesses they carried out. The company is an investor, owner or manager of a portfolio of more than 122 properties, mainly industrial, throughout 26 states, with more than 400,000 square meters of industrial assets, offices and premises.
