W. P. Carey has aquired a 1.05 million square foot industrial site in Shelbyville, Kentucky, which is set to get a big investment.
The asset, I-64 Commerce Center, was purchased for $102 million, according to a report from the Commercial Property Executive, citing Shelby County public records.
The cross-docked facility is 100 percent leased to Canadian Solar. The location, at 139 Logistics Drive, serves the company's main $800 million manufacturing plant, which is in Jeffersonville, Indiana. The world's largest solar and renewable energy firm plans to pour as much as $500 million in I-64 Commerce to set up battery assembly capabilities. That would add to existing features such as full circulation, 40-inch clear heights, ESFR sprinkling, and parking spots (for trailers and cars).
Colliers, which brokered the deal for the seller Flint Development, highlighted the area's strong fundamentals.
"Shelbyville, Kentucky, located immediately east of Louisville, is burgeoning with new manufacturing and distribution developments," the company said in a statement.
"The area has experienced notable economic and population growth in recent years, fueled by its immediate access to I-64, which links Shelby County directly to Louisville's robust highway system and the Louisville UPS Worldport."
When it comes to W. P. Carey's portfolio, nearly two-thirds of it is dominated by industrial and warehouses. Almost 40 percent of its tenants serve in either retail or provide consumer services. The New York-based company's occupancy rate sits at 98.8 percent across its portfolio.
Earlier this year, W.P. Carey bought a Columbus distribution center for $94 million. The site spans 1.2 million square feet and features 120 docks and 40-inch clear heights.
For industrial, the top 25 markets in the country have seen a spike in vacancy rates due to record supply in the last eight quarters, according to a Colliers report. However, things are starting to cool down. New supply has fallen by 18 percent over the past 12 months.