Invesco buys fully leased Spartanburg logistics park for $99.5M

Invesco Real Estate has bought Crossroads Logistics Park, a three-building, 814,320-square-foot Class A logistics park in Spartanburg, S.C., from Brennan Investment Group and Grandview Partners, after the final suite leased during marketing and the property reached full stabilization. JLL represented the sellers.

The park sits in South Carolina's Upstate corridor near the intersection of Interstates 85 and 26, less than 10 miles from Greenville-Spartanburg International Airport and under 90 miles from Charlotte Douglas. That location puts more than 18.7 million consumers within a four-hour drive and offers direct access to the South Carolina Inland Port and the nearby BMW Manufacturing campus. Its tenant roster spans a tier 1 supplier to major automotive manufacturers, a global leader in electrical infrastructure and switchgear, a building-supply manufacturer and distributor, logistics providers, and consumer products manufacturers, with an average remaining lease term exceeding five years.

As this publication reported yesterday, the price was $99.5 million, or about $122 a foot; because the sellers absorbed the leasing risk and delivered a fully leased building, Invesco's underwrite is built on current income rather than on a lease-up projection. The buyer pays for the result, not the hope.

For Brennan, the sale fits a rhythm. Within the same week, the firm recapitalized a 94% leased class B portfolio in Moorestown for the third time and hired a Phoenix market lead with a capital markets background. The sale converts a stabilized cash flow stream into equity for the next bet, and the Phoenix hire suggests where some of that capital is headed. What Brennan buys with the proceeds is the next thing to watch.