Almost 460,000 square feet of intown Atlanta warehouses that once belonged to cleaning products company Zep Inc. are coming back on the market.
The 28-acre property on Seaboard Industrial Boulevard was vacated by Zep, which relocated the distribution hub to Cartersville, Ga. What remains is one of the largest collections of empty industrial buildings amid the rapidly changing Atlanta neighborhoods Upper Westside and West Midtown.
A joint venture of Weaver Capital Partners, Seng Company and SilverCap Partners announced April 9 it bought the former Zep buildings, though it did not release a purchase price.
The property sold for about $19 million, according to people familiar with the transaction.
CIBC Bank USA arranged the financing.
The venture will market the space for lease or sale.
It’s possible the venture could target breweries, distilleries and building supply companies that are being displaced as more of Atlanta’s old warehouses are either torn down or converted to office space, food halls, stores or restaurants.
For example, Australian plumbing company Reliance Worldwide Corp. consolidated its U.S. headquarters into Atlanta’s Upper Westside, bringing about 250 jobs to the area. The building was adapted to loft-office space by a group of Atlanta investors with New City, Sweetwater Holdings Co. and Wyatt Capital. In West Midtown, which includes new developments on Howell Mill Road and Northside Drive, some former industrial sites are selling for as much a $5 million per acre.
The joint venture that bought the Zep facility could get offers to buy the remaining buildings from $75 per foot to up to $135 a foot. It could also lease the space in the range of $6 to $10 a foot.
Wilson Hull & Neal has been hired to market the property.
The Zep campus transaction was brokered by Terminus Commercial Real Estate Partners, which is led by Taylor Smith. Financing was arranged by Patterson Real Estate Advisory Group.