A two-building industrial property in Pineville is under new ownership after an Asian firm recently closed on the property.
Gateway Distribution Center, at 9504 Rodney St., was recently purchased for $22.6 million by an entity affiliated with Mapletree Investments, a real estate development, investment and capital management company headquartered in Singapore. The 19.7-acre site, which sits near the intersection of Interstate 485 and Westinghouse Boulevard, includes two warehouses that measure 168,000 square feet and 115,000 square feet.
Real estate investment manager Exeter Property Group sold the property. Exeter, based in Conshohocken, Pa., acquired Gateway Distribution Center when it was a one-building property in 2014 for $10.6 million. Exeter broke ground on the park’s second building the following year.
Exeter appears to have sold several of its industrial properties to Mapletree in the past month or so. It sold six industrial buildings in south Florida for more than $85 million as well as five warehouses in Memphis, Tenn., for nearly $97 million. Mapletree’s other recent investments in the U.S. include a data center in Brentwood, Tenn., which it acquired last year for $110 million.
Foreign capital continues to move into secondary U.S. markets as it becomes more difficult to achieve favorable yields in primary markets, which such capital traditionally invests in. And industrial space continues to be one of the hottest sectors of commercial real estate. In the Charlotte metro specifically, 4.7 million square feet was under construction in the first quarter, and more than 60% of that is pre-leased or owner-occupied, according to a report by Avison Young. Vacancy rates remain low but are slightly on the rise from last year, with market-wide vacancy at 5.3% at the end of Q1. Asking rental rates for warehouse and distribution space are averaging $4.21 per square foot, says Avison Young.
Mapletree manages four Singapore-listed REITs and six private real estate funds, which include assets in Asia, the United Kingdom and the United States. Its real estate portfolio includes office, retail, logistics, industrial, residential, corporate housing and serviced apartments, and student accommodation properties, according to its website. It has 12 offices globally, including one in New York.