News Release
CHILDRESS KLEIN PROPERTIES AND AMSTAR GROUP SELECT COLLIERS KEENAN AS LEASING AGENT FOR A THREE BUILDING, 814,000-SQUARE-FOOT DISTRIBUTION CENTER PROXIMATE TO PORTS OF CHARLESTON
Peter Fennelly, SIOR, Hagood Morrison, CCIM and Simons Johnson of Colliers Keenen to Spearhead Leasing Efforts; Development Slated to Break Ground in December 2006 with 351,000 Square Feet of Spec Space Planned
CHARLESTON, S.C. (October 24, 2006) – Joint venture partners Childress Klein Properties and Amstar Group today announced that Peter Fennelly, SIOR, Hagood Morrison, CCIM and Simons Johnson of Colliers Keenan have been selected to lead leasing efforts on the development of three modern Class A warehouse/distribution facilities on the final 55 interior acres within the Charleston Regional Business Center (CRBC), as well as the sale of a 9.4 acre site within the park, announced Tricia Noble, partner with Childress Klein. The development, which will break ground in December 2006, is slated to be complete by August 2008 by Shelco General Contractors. The first building will be a 351,000-square-foot speculative building, and will be ready for occupancy in the third quarter of 2007.
“The Ports of Charleston have been witnessing exuberant amounts of activity as a direct result of evolving logistical patterns in the global economy. East Coast ports are currently experiencing unprecedented growth in container volume due to growth in Asian trade and logistic concerns with California Ports,” said Noble. “Shippers have found that it is more cost effective to utilize the Suez Canal and warehouse inbound goods on the East Coast. Childress Klein and Amstar Group saw an opportunity to capitalize on this growing demand by developing a property that will cater to not only build to suite users, but those looking to move more quickly into spec space.”
Strategically located on Clements Ferry Road in Charleston’s Cainhoy submarket, the project sites are positioned to take advantage of the robust growth that the city’s port facilities are experiencing. Recent brokerage reports at mid-year 2006 put the vacancy rate of similar quality distribution space in comparable submarkets at under 10 percent, and availability has continued to tighten as new construction has failed to keep up with increasing space demands.
“There is great demand for warehouse/distribution space with no spec space in the area. Childress Klein and Amstar Group have picked the right product, the right location and the right time to develop,” said Peter Fennelly, SIOR of Colliers Keenan. “We are excited to pair with these companies, as well as to represent this premier new development in Charleston.”
Totaling 814,000 square feet, the three buildings planned for the site will feature modern design formats supporting strategic inbound and outbound logistics and distribution operations. Design plans call for creating superior, modern facilities that will include expansive truck courts with on-site trailer parking, cross dock, front load, and/or rear load formats, 24 ft-30 ft clear heights, and ESFR sprinkler systems. The buildings will also capitalize on their close proximity and short drive times to Charleston’s key port terminals (Wando Welch, Columbus Street, Union Pier, North Charleston, and the new terminal to be added at the former Charleston Navy Yard), Interstate freeway access, a location within the first drayage zone and the site’s Foreign Trade Zone status when attracting tenants.
Within its most recent annual report, The South Carolina State Ports Authority (SCSPA) reported closing its most successful fiscal year ever, posting record container volume, breakbulk tonnage, revenues and earnings. The Port of Charleston set a new container volume mark in the fiscal year ended June 30, 2006 by handling 1,978,806 20-foot equivalent units (TEUs), up just slightly from last year’s total of 1,970,875 TEUs. Total SCSPA breakbulk and bulk tonnage for Charleston, Georgetown and Port Royal also increased, rising to two million tons.
About Colliers Keenan
Colliers Keenan is a stockholder/member of Colliers International, one of the largest real estate organizations in the world. The organization, a global partnership of independently owned commercial real estate firms, has more than 9,100 employees in 248 offices in 51 countries around the globe.
About Childress Klein Properties
Childress Klein Properties is one of the larger real estate development, investment and management companies in the Southeastern United States. The company, and its predecessor companies, have been in business in the Southeast since 1976. Childress Klein Properties is currently active in Georgia, North Carolina, South Carolina and Virginia through offices in Atlanta and Charlotte. With owned real estate assets in excess of $1 billion, the partners of Childress Klein Properties have over 100 years collective experience in the planning, development, leasing and management of over 35 million square feet of commercial real estate. Our owned and managed properties currently total over 22 million square feet and include office buildings, shopping centers, mixed-use developments, warehouses, manufacturing plants, distribution facilities and business parks. For more information, please visit www.childressklein.com.
About Amstar Group, LLC.
Established in 1987, Amstar is a leading real estate private equity firm headquartered in Denver. The company invests nationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $2.2 billion of real estate. Amstar’s current portfolio includes office, industrial, multifamily, retail and hospitality holdings in major markets across the United States. For more information about Amstar Group visit the company’s website at www.amstargroup.com.