IOS List - April 17, 2023

News on IG Logistics, Rexford, Top IOS Amenities, 2 for-sale listings, 3 for-lease listings.

Author

Alex Best
April 17, 2023

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NEWS ROUNDUP

Who says IOS isn’t beautiful?

IG Logistics sells Philly IOS for $13.2 million. The 6.73 acre parcel was located just off I-95 in northeast Philadelphia. The property features a 17k sf truck terminal and a 15k sf repair shop and is 100% leased to two tenants: a logistics firm and a heavy machinery company. Newmark broker Ryan Guittare arranged the transaction. Cap rate and lease rates were not disclosed.

The experience behind IOS investors is critical. Perhaps the most obvious statement for veterans in the space. This article does a good job of laying out the reasons why. In the absence of readily available IOS data, there is heightened importance of having knowledgeable operators. Information on rental rates, leasing velocity, and the eccentricities of local markets is absolutely key to success. A good article to forward to your mom who still wonders what you do.

Top site features and amenities for IOS. Our tenants aren’t asking for quartz countertops, napping pods, our sundry stores. They want functional features. The quick list: wider curb cuts for easy ingress/egress, r-panel fencing, barbed wire, lots of light, and palapas for showering and eating a quick bite between hauls. Do we think an amenity arms race will be underway once the space is more institutionalized?

Rexford rolls - they now own 2% of the SoCal industrial market. After completing $2.4 billion in acquisitions in 2022, Rexford is on pace to hit $3 billion in 2023. As we recently covered, IOS is a big part of their strategy, but it appears to be mostly a covered land play for future redevelopment. Either way, they should be on every broker’s speed dial.

FOR SALE

OFF-MARKET CONFIDENTIAL: Metro Boston, MA - 40+ acre IOS

This is an IOS development opportunity on 40+ total acres (of which 24 acres are buildable). Already approved for 500+ trailer parking and fueling station. Location is convenient to Providence, RI and Boston, less than 2 miles to Rte 495. Also possible to subdivide for multiple users.

Exclusively listed by Linda Houllahan with Jacob Realty at 617-852-7052 or [email protected].

Gastonia (Charlotte metro), NC - 18.4 acre IOS

IOS development opportunity. Land zoned I-2. Conceptual trailer parking lot mapped above that will accommodate 300 parking stalls. Surrounded by industrial users. Only 1.4 miles to Exit 14 on I-85.

Exclusively listed by Michael Catanese at Park Commercial at 704-907-1985 or [email protected].

FOR LEASE

El Reno (Oklahoma City metro), OK - 8.93 acre IOS

This property is located on Hwy 66 about 20 miles west of Oklahoma City. The site has immediate access to I-40 and also close to I-44 and I-35. The site is fenced, gravel lot, zoned I-2. Offered for lease at $8,300 per month NNN. The lease term is negotiable.

Exclusively listed by Mitch Hammack and Brent Holliday with KW Commercial. Reach out Mitch (405-312-2512 and [email protected]) or Brent (405-948-7500 and [email protected]).

Rancho Dominguez, CA - 1.38 acre IOS

This is a rare low-coverage site just 8 miles to the LA/LB ports and 16 miles to LAX. The site features direct frontage on E Del Amo Blvd, with nearby access to Freeways 405, 710, and 91. Adjacent to Alameda Corridor. Existing building is 9,484 sf, with sprinkler system. The yard is partially concrete paved, fenced, with lights.

For pricing guidance, reach out to Anthony Bergeman, SIOR with Daum Commercial at 949-341-4511 or [email protected].

Gastonia (Charlotte metro), NC - 2.2 acre IOS 

This 2.2 acre storage yard is currently used for IOS and is only 1.2 miles from the Exit 14 interchange to I-85 west of Charlotte. Only 21.2 miles to Charlotte Douglas airport and surrounded by industrial users like Curtiss-Wright, Nussbaum, Mach3, and Advanced Auto Parts. Asking rate is $2,200/acre per month NNN.

For details, reach out to Kelvin Day at 704-251-9688 or [email protected].

THE VIX SAYS…RELAX

The VIX is a proxy for the expected stock market volatility over the next 30 days, measured by the pricing and volume of options trades on the S&P index. As you see above, the banking crisis sparked by the Silicon Valley Bank run created a spike of panic. Thankfully, it was short-lived and the VIX is measuring the lowest levels in 3 months. Is this comforting, in the face of a potential recession later this year? Or do you expect more turbulence?

Anecdotally, when this happened in early March, our team spent days on the phones with active real estate lenders (from community banks to money center banks). Their comments:

  • Pick your top 5 lenders and send them deposits NOW in advance of your next loan request.

  • Don’t attempt any new lending relationships this year, banks are only focused on existing client relationships.

  • Construction loans will top out at 60% LTV, for the best deals. Most will be 50-55% leverage.

  • Loans for stabilized assets will top out at 65%, and debt coverage tests are much more stringent. Expect to sign recourse, partial at least.

We think the outlook has now changed for the better, but please plan in advance for any lending needs.

MUST FOLLOW

If you are active in the IOS space, there is a good chance you’ve already spoken to Lee Sager. If not, seek him out and follow him on LinkedIn. He’s a great resource and connector.

IOS TOOL BELT

Tired of hunting through muni-code websites for zoning info?

IOSList is building an AI-enabled chat interface that will spit out the IOS-friendly zoning details for any metro area in the US. This is free resource to our readers. Just type in a city, and our free app will produce the local IOS-friendly zoning codes, permitted and prohibited uses, and link directly to the zoning code for each area.

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