IOS List - April 28, 2023

News on Open Industrial, Green Street, bank failures. Also, six great IOS listings in Anaheim, Kansas City, Orlando, Montclair.

AuthorAuthor

Opeyemi Faji & Alex Best
April 28, 2023

Good morning. This is IOSList, the publication of record for the industrial outdoor storage industry. If you don’t see it in IOSList, it didn’t happen.

Don’t forget to submit your anonymous IOS lease rates into our database and secure access to the full database! Give-to-get model. Thanks to those absolute alphas who have participated so far.

Click here to submit rents and get access:

Now onto the news and listings!

NEWS ROUNDUP

All together now.

First Republic Bank trading halted multiple times. First it was Silicon Valley Bank. Then Signature. Now First Republic seems to be the next regional bank domino to fall. Back in March, a group of 11 larger banks infused $30 billion of deposits to shore up First Republic’s balance sheet. It didn’t help. On Monday, the bank said it lost roughly 40% of its deposits in Q1. The stock is down almost 97% from the 52-week high. The question we should ask - how does a regional bank slowdown impact the nascent IOS lending environment that relies on local lenders to acquire and develop new product?

Dominguez Business Center set to reposition to IOS? Newmark arranged the sale of a 41,638 sf industrial project situated on 2.0 acres in the Ranch Dominguez community of LA County. The property currently has 6 tenants with a WALT of 1.3 years and the rents are 41% below market. The team thinks this could be a great repositioning play to IOS given its proximity to the ports in the hyper-infill South Bay submarket. Expect to see more of these building-to-yard conversions as IOS grows.

Green Street: infill IOS is the best. Vince Tibone and Jessica Zheng of Green Street wrote an excellent piece on the risk-adjusted returns of infill IOS. “Given approximately zero net new supply of IOS sites near logistics nodes, demand and rent growth for well-located IOS should remain robust over time.” A quote that should go into every IOS investment memo, lender presentation, and holiday card.

Open Industrial spends $4.3M on Charlotte IOS. The team at Open Industrial just closed on a 7.4 acre IOS site in Huntersville (Charlotte metro), NC. The site on McCord Rd is near NC-73 and about 2 miles from Interstate 77. Piedmont Properties’ team of Lester Osborn, Scott Hensley and Christian Samartino repped the seller. Leasing efforts are underway, so reach out to Justin Smith and Greg Gosselin if you have any interest.

FOR SALE

Alhambra, CA - two IOS parcels totaling 2.51 acres

Colliers International is offering a rare opportunity to acquire two irreplaceable industrial parcels totaling around 2.5 acres. The parcels are zoned IPD which allows for outside storage of fleet vehicles, contractor’s storage yards, and lumberyards. Immediate access to 710 and 10 Freeways. The addresses are 1147 S. Meridian Ave and 715 S. Meridian Ave in Alhambra, CA 91803. The sites are currently vacant with bids in for the seller to perform demo work if desired.

For pricing guidance, reach out to Riley Heaton at 323-278-3118 or [email protected].

For Sale or Lease - Atlanta MSA - 5.4 acre Fully Fenced

This IOS opportunity sits on a fully-fenced 5.4 acre lot. It is located within the Fulton Industrial District which is the largest industrial district in the eastern US with more than 52 million sf of industrial space. Located less than a mile from a brand new 1.1M sf Amazon distribution warehouse as well as Manheim GA, North America’s leading provider of vehicle re-marketing services.

Exclusively listed by Michael Watson with Northmarq at 404-823-6749 or [email protected].

Orlando, FL - 9.74 acre IOS Development Site

This IOS development site is located in the center of Orlando Central Park (OCP). There is extremely limited trailer and outdoor storage in OCP due to high FARs. Rent comps in the area average $10,600 per acre per month. Existing I-2/I-3 zoning permits outdoor storage. The site is paved and has off-site retention. Six points of ingress/egress allows for multiple smaller users. The Colliers team can provide a sketch with 300+ potential trailer drops. Pricing guidance is 7% yield on cost. Call for offers is May 18.

Exclusively listed by Colliers brokers Michael Macchia (631-626-5377 and [email protected]) and Jimmy Ullrich (850-294-3636 and [email protected]).

FOR LEASE

Anaheim, CA - 7.75 acre Vehicle Parking Site

This vehicle parking or surface storage site is conveniently located with proximity to 91, 55 and 57 Freeways. The site can be configured for a single 7.75-acre user or divided into sections of 4.23 acres and 3.40 acres. Built-to-suit structures for offices, restrooms, and employee parking are possible. The plan allows for customized striping, and the 7” concrete paving is fully fenced with security lighting.

Exclusively listed by Mike Hefner (714-935-2331) and Mike Vernick (714-935-2354) with Voit Real Estate Services.

Montclair (Inland Empire), CA - 3.15 acre IOS with warehouse

IOV and Lee & Associates is offering this site for lease with immediate availability. The warehouse includes a 25,000 sf maintenance shop. The fully-fenced and secured yard is half concrete, half stabilized crushed stone. The site enjoys close proximity to 10, 60 and 71 Freeways. Available for immediate occupancy. Link to brochure: LINK

For more information, reach out to Ryan Turnquist with Lee & Associates at 951-276-3680 or [email protected].

Montclair (Inland Empire), CA - warehouse on 0.83 acre IOS 

IOV and Lee & Associates are offering this 12,000 sf warehouse + IOS combo. This is a great trucking/transportation yard that is fully paved, fenced, and secured. The property was recently renovated and enjoys close proximity to 10, 60, and 71 Freeways. Available for occupancy immediate occupancy. Link to brochure: LINK

For more information, reach out to Ryan Turnquist with Lee & Associates at 951-276-3680 or [email protected].

TEN AI PROMPTS TO TRY TODAY

Last week, we discussed AI and how it might interact with our beloved IOS. If you haven’t played around with ChatGPT yet, do yourself a favor and try these 10 prompts to see what our robot overlords can do.

Step 1 - create a free account with Open AI: LINK

Type in these prompts and prepare to be amazed:

  1. Write a lease for a NNN industrial property with CPI-based escalations, 7 year term, 2 extension options, ROFR. (toss in more lingo for fun)

  2. Write a haiku about _______.

  3. Write a duet between Dolly Pardon and Eminem about their careers.

  4. Give me a recipe that I can prepare and cook in 25 minutes using the following ingredients: _____ , _____ , _____ .

  5. Write the code for a website about dogs with the following pages: home, about, FAQ, contact.

  6. Tell me the zoning designation for Long Island, NY that allow for truck parking and outdoor storage of materials.

  7. Write a tweet thread about the optimal Monopoly game strategy.

  8. Write a speech for a developer trying to rezone rural farmland to medium density residential.

  9. Write a press release for John Smith, a new acquisitions associate who is joining our real estate firm X Properties.

  10. Write a bedtime story for a 7 year old about dinosaurs in space. Now re-write it in French.

IMPRESSIONIST STORAGE YARD

Generated by Stable Diffusion.

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.

Help us spread the word by referring colleagues and deal partners to subscribe: ioslist.com

CONTAINER SHIPPING COSTS

Down almost 90% in the past 12 months!