Kittrich LLC has signed a long-term lease renewal with SkyREM at 5070 Phillip Lee Drive, a 400,800-square-foot in-fill industrial property in Atlanta’s Fulton submarket.
The property will receive significant capital improvements funded by SkyREM, including a new asphalt parking lot, LED lighting upgrades, new perimeter fencing, office and bathroom renovations, new loading dock packages and exterior painting. Its most recent renovation was in 2015.
“We are pleased to announce that our valued tenant has renewed their lease on a long-term basis at the property. This infill, mission-critical facility remains essential in supporting their continued growth and success,” Marc Civitillo, managing director of SkyREM, told Commercial Property Executive.
The B Class property built in 1965 offers Kittrich, a global manufacturer and distributor of high-quality consumer goods, access to major highways like I-20 and is conveniently rail-served.
The submarket is the third-largest industrial area in metro Atlanta. According to Lee Associates, it boasts superior connectivity and an extensive inventory, exceeding 128 million square feet.
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In the second quarter of last year, net absorption slowed significantly, and its construction pipeline has also been minimalized, with fewer projects under construction than the previous year. Buildings larger than 500,000 square feet accounted for most of the new construction there last year, according to Matthews Real Estate Investment.
In March, Costco acquired a 907,000-square-foot distribution center there.
In January, 10 primarily industrial and warehouse distribution assets across seven states in the Northeast, Southeast and Midwest regions received $170 million in financing from SkyREM in a deal supported by JLL, which represented the borrower in securing a fixed-rate, five-year loan from Apollo affiliates.
The properties, totaling about 2.5 million square feet, were 99 percent leased as of closing to 15 diverse tenants across various industries, including warehousing, technology, aerospace, manufacturing, government and logistics. The approximate average tenure for the tenants is eight years.