Plymouth Industrial REIT Executes Value-Add Initiatives in Recently Acquired Memphis Logistics Portfolio
Plymouth Industrial REIT (NYSE: PLYM) has sold a 33,688-square-foot flex building in Memphis, TN for $2.4 million. The building was part of a larger $100.5 million portfolio acquisition from July 2024. The property was identified for divestment at acquisition due to its non-core status and known tenant vacancy scheduled for December 2024.
The sale proceeds will fund leasing activities and the conversion of a 100,000-square-foot call center building back to a warehouse format for multiple industrial users. Additionally, Plymouth is evaluating the development of a new 106,000-square-foot building on excess portfolio land. The company currently owns 6.4 million square feet in the Memphis market.
Plymouth Industrial REIT (NYSE: PLYM) ha venduto un edificio flessibile di 33.688 piedi quadrati a Memphis, TN, per 2,4 milioni di dollari. L'edificio faceva parte di un'acquisizione più ampia di un portafoglio da 100,5 milioni di dollari risalente a luglio 2024. La proprietà è stata identificata per la dismissione al momento dell'acquisizione a causa del suo stato non centrale e della notevole disponibilità di inquilini prevista per dicembre 2024.
Il ricavato della vendita finanzierà le attività di locazione e la riconversione di un edificio di call center di 100.000 piedi quadrati in un formato di magazzino per diversi utenti industriali. Inoltre, Plymouth sta valutando lo sviluppo di un nuovo edificio di 106.000 piedi quadrati su un terreno in eccesso del portafoglio. Attualmente, l'azienda possiede 6,4 milioni di piedi quadrati nel mercato di Memphis.
Plymouth Industrial REIT (NYSE: PLYM) ha vendido un edificio flexible de 33,688 pies cuadrados en Memphis, TN por 2.4 millones de dólares. El edificio era parte de una adquisición de portafolio más grande de 100.5 millones de dólares realizada en julio de 2024. La propiedad fue identificada para desinversión en el momento de la adquisición debido a su estado no central y a la conocida vacante de inquilinos programada para diciembre de 2024.
Los ingresos de la venta financiarán actividades de arrendamiento y la conversión de un edificio de call center de 100,000 pies cuadrados de nuevo a un formato de almacén para múltiples usuarios industriales. Además, Plymouth está evaluando el desarrollo de un nuevo edificio de 106,000 pies cuadrados en terrenos excedentes del portafolio. Actualmente, la empresa posee 6.4 millones de pies cuadrados en el mercado de Memphis.
플리머스 산업 리트(NYSE: PLYM)가 테네시주 멤phis에 있는 33,688 평방 피트의 플렉스 빌딩을 240만 달러에 판매했습니다. 이 건물은 2024년 7월에 완료된 1억 5백만 달러 규모의 포트폴리오 인수의 일부였습니다. 이 자산은 비핵심으로 분류되어 인수할 때 매각 대상이 되었으며, 2024년 12월로 예정된 세입자 공실로도 지적되었습니다.
판매 수익금은 임대 활동과 100,000 평방 피트의 콜센터 건물을 다수의 산업 사용자들을 위한 창고 형식으로 재전환하는 데 사용됩니다. 아울러, 플리머스는 여유 포트폴리오 토지에 새로운 106,000 평방 피트 건물을 개발하는 것을 검토하고 있습니다. 현재 회사는 멤피스 시장에서 640만 평방 피트를 소유하고 있습니다.
Plymouth Industrial REIT (NYSE: PLYM) a vendu un bâtiment flexible de 33 688 pieds carrés à Memphis, TN, pour 2,4 millions de dollars. Ce bâtiment faisait partie d'un portefeuille plus large acquis pour 100,5 millions de dollars en juillet 2024. La propriété a été identifiée pour désinvestissement lors de l'acquisition en raison de son statut non essentiel et de la vacance de locataire prévue pour décembre 2024.
Le produit de la vente financera les activités de location et la conversion d'un bâtiment de centre d'appel de 100 000 pieds carrés en format d'entrepôt pour plusieurs utilisateurs industriels. En outre, Plymouth évalue le développement d'un nouveau bâtiment de 106 000 pieds carrés sur un terrain excédentaire du portefeuille. L'entreprise possède actuellement 6,4 millions de pieds carrés sur le marché de Memphis.
Plymouth Industrial REIT (NYSE: PLYM) hat ein Flexgebäude mit 33.688 Quadratfuß in Memphis, TN, für 2,4 Millionen US-Dollar verkauft. Das Gebäude war Teil eines größeren Portfolios, das im Juli 2024 für insgesamt 100,5 Millionen US-Dollar erworben wurde. Die Immobilie wurde bereits beim Erwerb aufgrund ihres Nicht-Kernstatus und der bekannten Leerständen für Dezember 2024 zur Veräußerung identifiziert.
Die Verkaufserlöse werden die Mietaktivitäten finanzieren und ein 100.000 Quadratfuß großes Callcenter-Gebäude wieder in ein Lagerformat für mehrere Industrienutzer umwandeln. Darüber hinaus prüft Plymouth die Entwicklung eines neuen Gebäudes mit 106.000 Quadratfuß auf überschüssigem Portfoliogelände. Das Unternehmen besitzt derzeit 6,4 Millionen Quadratfuß im Memphis-Markt.
- Sale of non-core asset for $2.4 million
- Strategic conversion of 100,000-square-foot call center to warehouse space
- Potential development opportunity for 106,000-square-foot building
- Strong Memphis market presence with 6.4 million square feet owned
- None.
Insights
The strategic disposition of a
The concurrent conversion of a 100,000-square-foot call center back to warehouse space demonstrates Plymouth's expertise in asset repositioning. This transformation is particularly shrewd given the robust demand for industrial space in Memphis, a key logistics hub benefiting from its strategic location and multimodal transportation infrastructure. The potential development of an additional 106,000-square-foot facility on excess land further highlights Plymouth's embedded growth opportunities within their existing portfolio.
Within Plymouth's 6.4-million-square-foot Memphis footprint, these initiatives reflect a sophisticated approach to market-specific optimization. The call center conversion specifically addresses the surge in industrial space demand while potentially commanding higher rents than office use. This type of value-add strategy typically yields 150-300 basis points of premium in cap rate compression upon stabilization, enhancing both NOI and overall portfolio value.
BOSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE: PLYM) announced the sale of a 33,688-square-foot flex building in Memphis, TN to an end user at a price of
At the time of acquisition, Plymouth targeted this building for divesture as it represented a non-core asset leased on a short-term basis to a tenant known to be vacating at its scheduled lease expiration in December 2024. The sale proceeds will be retained within the portfolio to fund leasing activities and the ongoing conversion of a 100,000-square-foot call center building back to its original warehouse format to accommodate multiple industrial users.
Jeff Witherell, Chief Executive Officer and Co-Founder of Plymouth, noted, “This is another example of how we successfully execute on value-add initiatives across the portfolio to create a better fit for the markets we operate in and to drive growth.”
In addition to the sale of the 33,688-square-foot flex building and the call center conversion, Plymouth continues to evaluate the development of an incremental 106,000-square-foot building on excess land within the portfolio. Plymouth owns a total of 6.4 million square feet in the Memphis market.
About Plymouth
Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.
Forward-Looking Statements
This press release includes “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding future leasing activity and expectations for the timing of the closing of the Sixth Street Chicago Joint Venture. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Contact:
John Wilfong
SCR Partners
IR@plymouthreit.com
FAQ
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