By Illyshia Parker – Commercial Real Estate Reporter, Birmingham Business Journal
Original Post from Birmingham Business Journal
A Birmingham-based private real estate investment company is partnering with a global real estate investment group to create a joint venture with a new investment fund.
Growth Capital Partners (GCP) and AEW Capital Management LP (AEW) created GCP Fund II with $300 million in equity and recently secured a first acquisition.
The fund is expected to build a $1 billion portfolio over the next 18 months through acquisitions of existing facilities and ground-up development of new warehouses.
GCP recently purchased property located at 1001 Cherry Drive in Braselton, Georgia, for $27.35 million as part of its joint venture with AEW. The seller was Foxfield Industrial, a joint venture between Novaya Real Estate Ventures and Foxfield Ventures.
The newly acquired property is a 455,602-square-foot, Class-B facility built in 1985 and expanded in 1996. Located adjacent to I-85 in Atlanta’s northeast industrial submarket on 30.5 acres, the property site has excess land for a potential building expansion or additional outdoor storage.
The building is fully leased to two tenants, Year One Inc. and TranSouth Logistics. The building features 22- to 30-foot clear heights, 45 dock-high doors, eight drive-in doors and 486 auto spaces.
Dennis Mitchell, Matt Wirth, Mitchell Townsend and Britton Burdette led the JLL Capital Markets Investment Sales and Advisory team representing the seller.
“Cherry Drive perfectly fits the target profile for GCP. Its prime location with quality tenants and significant upside from market-based rents should allow GCP to achieve its purpose of obtaining value-add return for its investors,” Gardner Lee, co-founder of GCP, said.
GCP will acquire, manage and develop the Fund II portfolio. This is GCP’s second fund dedicated to the industrial real estate sector. The Birmingham-based firm sold Fund I with a 98% occupancy rate in 2020 to an institutional investor for $802 million.