SAN DIEGO (MAY 18, 2016) — Realterm Logistics, in partnership with LaSalle Property Fund (“LPF”), a U.S. core commingled fund advised by LaSalle Investment Management (“LaSalle”), a leading global real estate investment manager, has completed the purchase of 2727 Kurtz Street in San Diego. Realterm and LPF acquired the Class A, 83,469 square-foot e-commerce/final mile distribution facility, with an industrial long-term lease to Amazon, Inc., for an undisclosed amount. This same partnership also owns 2717 Kurtz Street, the property immediately adjacent.
Amazon is leasing the space for its Prime Now operations, which offers members in select markets free two-hour delivery on more than 10,000 items. Prime Now’s rapid expansion (already in 24 markets across the U.S.), is indicative of the type of growth final mile logistics and distribution centers are experiencing across the U.S.
“We focus on transportation advantaged high flow-through (HFT) facilities, which are located in and around major population centers and offer critical, high volume, ‘last mile’ freight distribution transfer points,” said Paul Underwood, Senior Vice President of Realterm Logistics. “Our properties facilitate the efficient flow of goods through the supply chain to their final destination.”
The old regional distribution center model with two-to-three day delivery has changed due to the advent of e-marketing. E-retailers are now navigating to secure 50,000 – 100,000 square foot, well-located fulfillment centers that offer not only same day but one-to-two hour delivery service to key residential and retail areas. 2727 Kurtz Street is an ideal location for Amazon Prime Now and other e-retailers. The property’s infill location in the Sports Arena submarket and adjacency to the I-5 freeway offers proximity to the higher income demographics from La Jolla through downtown San Diego.
The Sports Arena submarket where 2727 Kurtz Street is located had a 2015 year-end vacancy rate of just 0.7 percent, the lowest in San Diego County, with no availability over 20,000 square feet.
2727 Kurtz Street is located in the center of the Midway – Pacific Highway Community Redevelopment zone, a section of the City of San Diego planned for redevelopment to begin in 2016. “The redevelopment plan includes the improvement and widening of streets, improvement of two nearby intersections, new parks, new bike paths and the installation of a new Rapid Bus stop at the rear of the property,” added Underwood.
The final mile distribution facility at 2727 Kurtz Street was renovated in 2015 and is located on 3.1 acres. It is located 2.5 miles from downtown San Diego and adjacent to San Diego International Airport, the SPAWAR defense facility, and the I-5/I-8 intersection.
About Realterm Logistics
Realterm Logistics (http://www.realtermlogistics.com/) is a vertically integrated owner and manager of high flow-through (HFT) logistics facilities serving the transportation industry. Realterm Logistics is a subsidiary of Realterm, a private equity investment firm and development company focused on logistics and infrastructure assets with approximately $2.5 billion in assets under management across more than 300 operating and development investments in the U.S., Canada, Europe and India. Realterm’s four investment strategies include Realterm Logistics (surface transportation logistics real estate), Aeroterm (on-airport logistics real estate), IndoSpace Logistics Parks (India’s leading industrial developer), and Realterm Energy (renewables and energy efficiency).
Phone: (410) 216-6134
Email: [email protected]
About LaSalle Investment Management
LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager, with approximately $58 billion of assets under management of private and public property equity investments. LaSalle is active across a range of real estate capital and operating markets including private and public, debt and equity and our clients include public and private pension funds, insurance companies, governments, endowments and private individuals from across the globe. For more information, visitwww.lasalle.com.