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Colony Capital's Industrial Platform Buys 9 Atlanta Assets

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Colony Capital, Inc.’s (CLNY - Free Report) industrial platform — Colony Industrial — recently announced acquisition of nine premium industrial properties in Atlanta, GA. The move comes as part of the company’s effort to boost its presence in Atlanta. In fact, with the latest acquisition, the platform has now expanded its ownership of light industrial logistics property in Atlanta to 7.7 million square feet of area.

The Atlanta NE/I-85 Industrial Portfolio, which the company has acquired, includes a total of 890,920 square feet in six buildings at 2150 Boggs Road Northwest (Buildings 100, 200, 300, 400, 500 and 600) in Duluth, GA. Also, the portfolio includes one building at 1645 Satellite Boulevard in Duluth, GA, and two buildings at 2925 and 3255 Shawnee Industrial Way in Suwanee, GA.

The acquisition of this portfolio, which is positioned in Atlanta’s prime northeast industrial submarket, is a strategic fit for Colony Industrial. The properties enjoy high demand as these offer immediate access to Interstate 85, which is the key north-south corridor connecting Atlanta to Charlotte and the Mid-Atlantic. This is also indicated by the fact that 96% of this portfolio is leased to 23 high-grade tenants.

In fact, to support e-commerce business, address a large customer base and urbanization, companies are being compelled to enhance and renovate their distribution and production platforms. Services like same-day delivery are gaining traction, propelling demand for modern distribution facilities. Also, last-mile properties are witnessing a solid increase in asset values.

Going forward, with a recovering economy and job market gains, as well as tax reforms, consumption levels are anticipated to remain elevated. And with a healthy manufacturing environment and high business inventories, demand for warehouse and logistics real estate is anticipated to remain high. This is likely to offer significant impetus for growth to REITs like Prologis (PLD - Free Report) , Duke Realty Corp. (DRE - Free Report) , Liberty Property Trust (LPT - Free Report) and Colony Industrial as well.

Particularly, Colony Industrial makes concerted effort to enhance its footprint in key U.S. transportation hub through selective buyouts of infill industrial buildings and specifically focus on important last-mile assets. These measures, in turn, will likely drive growth of global investment management firm — Colony Capital — which has assets under management of $43 billion, and possesses substantial holdings in the healthcare, industrial and hospitality property sectors.

Colony Capital currently has a Zacks Rank #3 (Hold). In the past six months, the stock has returned 5.8% compared with the industry’s decline of 3.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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