Sale of 380K SF industrial facility closes

CHICAGO, Aug. 15, 2024 – JLL Capital Markets announced today the million sale of 172 Trade St., a 380,000-square-foot industrial facility in Lexington, Kentucky.

JLL worked on behalf of the seller, Sealy & Company, and Legacy Investing acquired the asset.

172 Trade St. has been fully leased to an e-commerce giant since 2004. The location serves as an essential part of the company’s wider fulfillment network, being responsible for handling customer returns and supporting operations in various areas such as merchandising, make-on-demand and general fulfillment.

Over the years, the tenant has invested significantly in the facility, making various upgrades including upgraded lighting to T-5, 100% warehouse A/C HVAC upgrades, investments in material handling equipment and renovations to the office space and bathrooms.

Situated in the growing Lexington market, the property benefits from access to a large pool of skilled labor and a central location close to major metropolitan areas across the U.S. Moreover, 172 Trade St. falls within Lexington's Urban Service Boundary (USB), a geographic demarcation that separates Lexington-Fayette County's urban core from its agricultural land. Investors can leverage the property's USB location, as it limits widespread development while boosting land values within the boundary.

"We are very pleased to add another mission-critical supply chain node to our portfolio and appreciate JLL's partnership for a smooth transaction," said Wilson West, Legacy's Director of Acquisitions. 

The JLL Capital Market’s Investment Sales and Advisory team was led by Industrial Group Co-leader and Senior Managing Director John Huguenard, Senior Managing Director Sean Devaney and Senior Director Ross Bratcher. The JLL Louisville team, including Senior Managing Director Matt Hartlage and Managing Director Powell Spears, also provided support.

"We are thrilled to have facilitated the successful sale of the 172 Trade St. on behalf of a great client in Sealy & Company," said Devaney. "This transaction highlights the value and attractiveness of strategically located, mission-critical industrial facilities. We were happy to work with the Legacy team on another successful transaction."

"The sale underscores the state of Kentucky’s continued appeal as a prime location for sophisticated industrial users and highlights the strong investor appetite for well-positioned properties across the state," added Bratcher.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

Sealy & Company, a fully-integrated commercial real estate investment, and operating company, is a recognized leader in acquiring, developing, and redeveloping regional distribution warehouse, industrial/flex, and other commercial properties. Sealy provides a full-service platform for high-net-worth individuals and institutional investors through our development, management, and brokerage divisions. Sealy & Company has an exceptional team of over 100 employees, located in five offices, with corporate offices in Dallas, TX and Shreveport, ­LA.

Legacy Investing's executive team combines seasoned Fortune 500 C-level executive leadership with deep real estate expertise. Legacy is a fully integrated platform that focuses on tech-impacted real estate across digital and physical supply chains, future workplaces, and life sciences. The firm leverages its expertise on today's infrastructure to target and position properties that meet modern tenant demand and in turn create long-term real estate value. Legacy and its affiliates own/manage a portfolio of mission-critical real estate properties on behalf of its institutional and private capital partners. For more information, see www.LegacyInvesting.com.