The logistics distribution campus adjacent to the BNSF railway yard in Southeast Memphis secured two new tenants during last year's fourth quarter. The pair of deals with Victory Packaging and Maxam Tires received a 2024 CoStar Impact Award for lease of the year, as judged by a team of real estate professionals familiar with the market.
Victory Packaging, a packaging supply store in Memphis, agreed to take 234,416 square feet at the campus known as the Memphis Logistics Center, per CoStar data. Maxam Tire North America, a global tire manufacturer with U.S. headquarters in Danvers, Massachusetts, meanwhile, signed a six-year lease for 198,684 square feet.
Previously, transport and logistics company Geodis had leased the entire 433,100-square-foot warehouse, signing in 2020.
Owners LRC Properties of Rye Brook, New York and Miami's Rialto Capital Management purchased the warehouse property in 2021 for $57 million as part of a portfolio with two other Memphis sites.
According to Averitt Express' blog, Memphis' location makes it an important logistics hub as much of the U.S. manufacturing and agriculture is located in the middle of the country, allowing Memphis to support those needs. The leases signed by Victory Packaging and Maxam Tire add to Memphis' strength as it provides key services for logistics operations in the country.
About the Deal: The Memphis Logistics Center, located at 5510 E. Holmes Road, is 433,100 square feet and occupies 27.23 acres. The Class A property was built in 1998 and has three drive-ins, cross docks, a 28-foot clear height and ESFR sprinkler system. It includes an industrial and office mix and is less than 15 minutes from Memphis International Airport.
What the Judges Said: Frank Dyer III, senior vice president of brokerage for Gill Properties, commented that it was a "complex downsize of building to attract two tenants."
They Made it Happen: CBRE's Stephanie Allen and Patrick Walton along with Cushman & Wakefield's Owen Mercer brokered the Victory Packaging transaction. Allen and Walton, as well as Colliers' Elliot Embry and NAI Saig Co.'s Reynolds Willis, handled the Maxam Tire transaction.
CoStar Market Manager Zachary Kirk contributed.