A New Jersey firm that invests in industrial-grade real estate has added to its Lowcountry portfolio.
Monmouth Real Estate Investment Corp. said Wednesday that it paid almost $47.2 million for a large, newly built distribution center that's occupied by FedEx Ground under a 15-year lease.
The 265,318-square-foot warehouse building is on a nearly 50-acre site at 6850 Weber Blvd. in North Charleston, near Palmetto Commerce Park. It was developed by an affiliate of SunCap Property Group.
“This property is ideally located near the Charleston International Airport and has ample acreage to accommodate future expansion," Monmouth CEO Michael Landy said in a written statement.
The acquisition gives the Freehold, N.J.-based company its fourth big commercial property in the Charleston region. Landy described the area as a “dynamic and growing” industrial real estate market, citing the port and the presence of big blue-chip manufacturers such as Boeing South Carolina, Mercedes-Benz Vans and Volvo Cars.
Monmouth's previous local acquisition was the $21.9 million purchase of a new 121,683-square-foot building off Rivers Avenue that’s also used by FedEx. That deal closed last year.
FedEx's ground unit struck a deal in 2017 to lease the Weber Boulevard building from Charlotte-based SunCap, which invested more than $39 million in the development, according to public land and bank loan records. It was to replace a smaller logistics center the delivery giant had operated in Hanahan since 2004.
FedEx Ground has been upgrading its cargo operations in the Charleston area as part of a nationwide effort to boost daily package volume capacity and speed up delivery times as online sales up-end the traditional retail industry.
“The network enhancements have resulted in accelerating ground service delivery by one day or more in more than two-thirds of the United States,” the company said in statement last year. “With these changes, FedEx Ground is faster to more overall locations, including more residential locations, than the competition.”