GTIS Partners, a real estate investment firm and sponsor of qualified opportunity zone funds, have formed a joint venture with industrial developer, Collett Industrial, to purchase and develop two industrial projects in a South Carolina opportunity zone with a total capitalization of $140 million.
The developments, located in the Greenville-Spartanburg metropolitan statistical area, are located directly adjacent to one another within the same opportunity zone on the eastern edge of the South Carolina Technology & Aviation Center, one of the largest business parks in the state that houses the operations of more than 110 companies. Upon completion, the projects will total nearly 1.2 million square feet of industrial space.
The companies said that demand in the Greenville-Spartanburg industrial market is supported by “a diverse set of factors,” including the strong availability of labor, proximity and connectivity to the Port of Charleston and Inland Port Greer, and the long history of manufacturing in the region.
One of the projects, Willimon Business Park, has reportedly executed leases or letters of intents with tenants totaling approximately 520,000 square feet for long term occupancy at the property.
“Fueled by the ongoing growth of e-commerce and onshoring, the demand for industrial warehouses remains strong, and we are excited to continue our expansion in the sector in partnership with the team at Collett Industrial,” said Robert McCall, a senior managing director at GTIS Partners. “With a focus on opportunity zone properties specifically, we are also pleased to bring more jobs and economic opportunities to these communities, and look forward to encouraging development across the region.”
With these two new projects, GTIS’ global industrial portfolio totals 13 million square feet with a total project cost of $1.25 billion across 14 projects.
In July, GTIS Partners launched its second qualified opportunity zone fund, GTIS Qualified Opportunity Zone Fund II, which is structured as a real estate investment trust and has a minimum investment of $100,000.
GTIS Partners manages $4.7 billion in gross assets and invests across a range of real estate sectors including single family and multifamily housing, office, industrial/logistics and hospitality as well as opportunity zone investments.