In 2010, CIP Real Estate purchased this 836,500 square foot, six building, large bay industrial distribution park adjacent to the Piedmont Triad International Airport in Greensboro, North Carolina, in partnership with Blue Vista Capital Management for $12.3 mm in a rapid, 30 day escrow. The very low price point ($14.70 per square foot) and the quick timing were a result of the seller, a large East Coast REIT, requiring a quarter-end close date for reporting purposes.
Upon acquisition, CIP Real Estate embarked on an extensive interior and exterior renovation program, including installation of an ESFR fire system, new roofs units, new truck courts, and other cosmetic upgrades in order to modernize this older park to current institutional standards. CIP Real Estate’s marketing team released more than 50% of the park to credit tenants, including FED EX, Carroll Tire, and Bunzl. To maximize the exit returns, the Carroll Tire building was sold separately to a private, single tenant investor at a premium price with the remaining five buildings sold in 2013 to an institutional buyer at a substantial increase to the venture’s cost basis.
