PCCP, Distribution Realty Group Launch Nashville Project
PCCP and Distribution Realty Group are teaming up again on an industrial development in the Nashville, Tenn., market. The joint venture has begun construction on Middle Tennessee Industrial Center, a four-building, 703,920-square-foot speculative project in Murfreesboro, Tenn., slated for delivery in late 2025.
Located on 89 acres at 315 S. Rutherford Blvd., the first phase of MTIC will consist of a rear-load, 234,588-square-foot building and a front-load 149,150-square-foot building. Both will feature 36-foot clear heights. Building 1 will also have up to 56 dock doors and 188 parking spaces, while Building 4 will include up to 40 dock doors and 177 parking spaces.
A timetable for construction of the final two assets is not available but Building 2 is expected to be a 216,405-square-foot rear-load building and Building 3 is planned as a 103,777-square-foot rear-load building.
The buildings can be used by single or multiple tenants. The developers anticipate receiving inquiries from a wide variety of potential tenants, from local warehousing users to larger, more regional distribution users. Major companies in the area include Lineage Logistics, FedEx, Americold Logistics and Amazon.
Close to Nashville and highway
MTIC will be situated within Nashville’s primary core Interstate 24 submarket and about 36 miles southeast of downtown Nashville. The property is strategically positioned to serve both downtown Nashville and the broader regional area due to its proximity to I-24.
Ryan Dodge, a partner and managing director at New York-based real estate finance and management firm PCCP, said in prepared remarks the I-24 corridor has been experiencing high user demand and limited supply due to high barriers to entry. Noting the Greater Nashville area is projected to continue seeing an in-migration of population and wealth, Dodge said they expect the industrial sector in the region to remain robust.
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The Nashville industrial market had 224 million square feet of inventory and a 3.7 percent vacancy rate at the end of the third quarter, according to the developers. JLL reported in its third-quarter 2024 market report the Nashville market had 4.7 million square feet of speculative development under construction, with tenant demand at nearly 6 million square feet. That should lead to rising rents. With positive macroeconomic conditions in the Southeast region, JLL expects Nashville to continue to be viewed as a highly desirable market for tenants and investors.
William Sisk, Brett Wallach and John Zeffrey of Lee & Associates in Nashville are handling leasing for the property owners.
Earlier Nashville JV
PCCP and DRG have worked together in Tennessee in the past. In October 2022, they announced the formation of a joint venture to build Beechcroft Industrial Park, a speculative three-building, 815,530-square-foot project in Spring Hill, Tenn., near a major General Motors manufacturing plant. Beechcroft Industrial Park includes a 228,580-square-foot rear-loading building, a 244,950-square-foot rear-loading building and a 342,000-square-foot cross-docked building. The 63-acre site is 38 miles south of downtown Nashville.
More PCCP industrial projects
In November, PCCP formed a joint venture with CRG to develop The Cubes at Alpha, a 575,900-square-foot industrial park on a 37-acre site in Alpha, N.J. Delivery is expected by the third quarter of 2025. The project will be aimed at e-commerce, distribution, 3PL and manufacturing uses. The Cubes at Alpha will have two buildings measuring 270,900 square feet and 305,000 square feet. Located near Interstate 78, the property is about 24 miles southwest of Allentown, Pa., and about 60 miles east of The Port Authority of New York & New Jersey.
In June, PCCP teamed with another joint venture partner, BBX Logistics Properties, for The Park at Delray, a 40-acre industrial campus in Delray Beach, Fla. Phase one of the project includes the development of a 200,000-square-foot building. Upon completion, it will feature three buildings totaling more than 670,000 square feet.
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