To get a sense of how desirable truck terminals are to some commercial real estate investors, take look at what Biynah Industrial Partners has been up to lately.
The investment fund has spent about $28.7 million in just the past couple of months to buy three such properties as it looks to grow its portfolio of the in-demand buildings. It bought three truck terminals in Atlanta, Dallas and Miami in August and September, according to CoStar data.
Biynah paid $8.1 million for the Atlanta terminal, $9.7 million for the Miami property and $11 million for the Dallas terminal.
It's just the latest example of how truck terminals are attracting a wide range of buyers and tenants because they provide several benefits that are difficult to find in other property types, according to a recent JLL report.
First off, the special zoning required for truck terminals is difficult to obtain in heavily populated areas, limiting new terminal development. Many truck terminals also have large interior spaces suitable for moving pallets and large freight parcels, making them more desirable.
In addition, truck terminal sites frequently have large parking areas so big trucks can access the building. That makes the lots suitable for long-term truck parking and for the sale and rental of heavy equipment such as bulldozers, excavators and wheel loaders.
Billion-Dollar Bid
When trucker Yellow Corp. filed for bankruptcy in August, it put more than 160 truck terminals up for sale to raise funds to pay off its creditors. Estes Express Lines, a trucking company based in Richmond, Virginia, has been designated the lead bidder for Yellow’s real estate assets with a $1.525 billion bid.
But other buyers could emerge later this year during an auction for Yellow’s properties.
Biynah may seek to acquire a small number of truck terminals in the Yellow portfolio if Estes looks to offload some properties through the bankruptcy case, Jeff Josephs, managing member at Biynah, told CoStar News.
The Atlanta facility, located at 1235 Constitution Road, covers 21,600 square feet and is in a part of Atlanta that has a large concentration of trucking operations. It’s leased to 3PL Bridge, a provider of warehousing and last-mile distribution services.
The Miami facility, at 11700 NW 36th Ave., spans 18,400 square feet. The 47,000-square-foot Dallas truck terminal, at 3817 Irving Blvd., does not have a current tenant.
Biynah, based in Minneapolis, owns more than 40 truck terminals in the United States.