DALLAS, TX – (December 20 , 2024) – Sealy & Company, a leading real estate investment and services firm, announces the acquisition of two Class-A warehouse/distribution centers in the Memphis, Tennessee market. The strategic addition enhances Sealy & Company’s footprint in the Memphis industrial market and upholds the company’s long-term growth strategy of acquiring high-quality assets in strong logistics hubs. Purchased at a significant discount to replacement cost, this transaction is a testament to Sealy & Company’s disciplined approach focused on securing long-term value.
Premier Industrial Facilities with State-of-the-Art Features
The newly acquired properties, 1660 Stateline Road E, Southaven, MS, and 12914 Stateline Road E, Olive Branch, MS, represent a combined 589,598 SF of modern industrial space. Both facilities are built with a focus on high-end design and flexibility to meet the demands of today’s logistics and distribution operators.
1660 Stateline Road E, a 347,604 SF facility, features a rear-load configuration, 32-foot clear heights, and a secure 185-foot truck court with a 60-foot concrete apron. The fully fenced property includes multi-tenant potential, with three storefronts and office space in one section. Located in the covenant-controlled Stateline Business Park, which spans 230 acres and over 4 million square feet of Class-A industrial space and is home to notable tenants such as DHL, GXO (a division of FSP), ScanSource, and Fresenius.
12914 Stateline Road E, a 241,994 SF facility, offers similar premium specifications, including a rear-load configuration, 32-foot clear heights, and a fully fenced and gated property with secure access. The facility features a 180-foot truck court with a 50-foot concrete apron and HVAC throughout 100% of the warehouse, ensuring operational efficiency. The facility is designed for multi-tenant functionality and includes office space in two corners and a demising wall for further flexibility. This property is located in the 475-acre Crossroads Distribution Center Park, which features over 7 million square feet of Class-A industrial space and houses Fortune 500 companies, including Milwaukee Electric Tool and General Electric.
Strategic Location and Market Strength
Located within the DeSoto Submarket, these properties capitalize on Memphis’ reputation as one of the top logistics hubs in the world. Memphis provides unparalleled connectivity, access to the Mississippi River, rail systems, major highways, and the busiest air cargo airport in North America at Memphis International Airport. The properties’ strategic location places 75% of the U.S. population within a two-day drive, making it ideal for efficient national distribution.
The DeSoto Submarket offers significant long-term advantages, including lower property taxes than neighboring Tennessee markets and continued industrial growth supported by an experienced workforce. Positive net absorption trends in 2024 further signal the submarket’s resilience and increasing demand for high-quality industrial space.
Sealy & Company’s Investment Strategy
This acquisition reinforces Sealy & Company’s successful strategy of identifying and acquiring value-added opportunities strategically positioned for future growth. These properties’ flexibility allows for seamless multi-tenant adaptations, creating opportunities to optimize cash flow and occupancy. With a balanced remaining lease term, both properties are well-positioned to provide steady income while benefiting from Memphis’ strong industrial fundamentals.
Commenting on the acquisition, Jason Gandy, Managing Director of Investment Services, stated, “This acquisition reflects Sealy & Company’s confidence in the Memphis industrial market and our ability to execute on strategic opportunities. The combination of high-quality assets, strategic positioning, and flexible design situates these properties for long-term success, benefiting our investors and tenants.”
Execution and Collaboration
Sealy & Company’s investment team skillfully executed the transaction in collaboration with Matt Wirth of JLL, who represented the seller. Thank you to all parties for their expertise and professionalism in completing this acquisition.
A Growing Presence in the Memphis Industrial Market
Sealy & Company continues strengthening its position as a leader in the industrial real estate sector, further expanding its footprint in the advantageous Memphis market. The strategic location, strong design, and positive market fundamentals of these properties enhance their value, demonstrating Sealy & Company’s commitment to offering top-quality industrial facilities.
For more news and information regarding Sealy & Company, please visit the company’s website at www.Sealynet.com.
About Sealy & Company
Founded in 1946, Sealy & Company is a fourth-generation family-owned commercial real estate investment and operating company specializing in industrial and logistics properties. The firm acquires, develops, redevelops, manages and operates industrial real estate throughout the United States through a fully integrated platform that includes acquisitions, development, asset management, property management, construction management, and brokerage services. Sealy & Company currently manages more than $3 billion in assets and has completed over $8 billion in investment volume throughout its history.