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December 16, 2021 - CRG, a national real estate development and investment firm, has announced the sale of a 700,000-square-foot industrial warehouse at The Cubes at Interstate Centre II in Bryan County, Ga., 23 miles west of Savannah, to Realty Income. Known as Building A at The Cubes at Interstate Centre II, a 300-acre development within Interstate Centre, the facility is fully leased to McKesson Medical-Surgical, a leading medical distributor.   

The project served as the first vertical development of CRG’s master-planned industrial park, The Cubes at Interstate Centre II, strategically positioned to address the increased demand for industrial space being driven by the expansion of the Port of Savannah. JLL Savannah reports over 16 million square feet under construction in the Savannah area, with more than half pre-leased and 2 million of that in the fourth quarter. An additional 6 million square feet of leases are anticipated to sign by the end of fourth-quarter 2021, contributing to roughly 8 million square feet signed in the fourth quarter. In an approximately 80-million-square-feet market, this activity accounts for approximately 10% of market absorption in the fourth quarter alone.   

Through the first three quarters of 2021, the greater Savannah industrial market posted net absorption of 6.7 million square feet of space, which eclipsed all of 2020’s absorption. The market has zero availability of Class A space, a record low 1.1% vacancy rate as of the end of third quarter 2021 and over 25 million square feet of tenant demand. 

“We anticipated tremendous interest in Building A, and its quick lease-up and sale demonstrate CRG’s ability to deliver the best product in the right market at the right time,” said Mike Demperio, partner and senior vice president of the Southeast region for CRG. “For a whole range of companies doing business in the Southeast, this site is ideal for transportation and labor. As the Port of Savannah continues to experience rapid growth and market absorption from the congested West Coast ports, The Cubes at Interstate Centre II offers much-needed proximity to the Savannah port while benefiting from lower labor costs and traffic congestion.” 

Located at 1338 Interstate Blvd. in Ellabell, Ga., Building A features 36’ clear heights, an ESFR sprinkler system, 80 9’ x 10’ dock doors, and four 12’ x 14’ drive-in doors. It also has 185-foot-deep truck courts, 131 trailer spaces and 225 auto spaces. CRG’s parent company Clayco served as the builder for the project and it subsidiary Lamar Johnson Collaborative served as architect. CRG is currently constructing a 463,200-square-foot facility as its second industrial project at The Cubes at Interstate Centre II. 

“We are thrilled with the initial success at the Cubes at Interstate Centre at an unmatched location like Savannah,” said Shawn Clark, president of CRG. “Savannah has been a primary focus for our team, and with the support of strong leadership at the Georgia Port Authority in executing its long-term strategic vision for increasing capacity at the Port of Savannah, it has only further strengthened our conviction in the market.” 

The Port of Savannah is now the nation’s third-largest port gateway in the United States following the expansion project that deepened the Port’s navigation channel from 42’ to 47’ in 2021. The port saw 5.3 million TEUs of container activity in fiscal year 2021, 900,000 more than in FY 2020, an increase of 20%. The port recently announced it will continue investment in its future with plans to accommodate an additional 1.6 million TEUs by June 2022. 

In Georgia, CRG is also developing The Cubes at Bridgeport, a 500-acre master-planned industrial park that can accommodate 8.5 million square feet in the South I-85 submarket of Atlanta, and The Cubes at River Park, a 1,006,000-square-foot speculative industrial building in Butts County, located in Atlanta’s Interstate 75 South submarket. CRG has constructed or has planned developments of The Cubes projects totaling over 7 million square feet throughout the state of Georgia. CRG has planned projects, broken ground or completed over 43 million square feet of The Cubes projects throughout the U.S., 20 million square feet of which has already been delivered. 

For more information, visit CRG’s website at www.realcrg.com.

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