PAIGE MARLOW Vice President - Market Operations paige.marlow@jll.com
404.942.2211
0.5 Miles to I-85 & I-285 Intersection
EXECUTIVE SUMMARY
THE OFFERING
Jones Lang LaSalle America, Inc. (“JLL”) has been exclusively retained by ownership as the sales representative for Camp Creek Commerce Center, also known as the “Property” – a newly built infill Class A state-of-the-art distribution warehouse located in Atlanta’s Airport I-85 Submarket totaling 220,127 square feet along with two separate concrete, fully lit trailer parking lots with 157 spaces on 4.86 acres. This modern industrial facility is strategically positioned just 0.6, 2.0, and 4.5 miles from I-285, I-85, and Hartsfield-Jackson International Airport, respectively. The Property is 68% leased to Grady Health System, one of the largest public healthcare systems in the Southeast (2024 Revenue: $2.4B) with 9.5 years of term remaining (7.2 years firm, 8 years of equivalent rent obligation with penalty) and 3.5% annual escalations, providing stable cash flow and strong rent growth. This offering presents significant upside for an investor through the lease-up of the 69,585 square foot unit and trailer lots.
The Airport I-85 Submarket demonstrates exceptional performance, boasting a five-year average rent increase of 14.5%, outperforming the Atlanta average by 381 bps. Notably, spaces 70 KSF and below command a substantial 39% premium over the submarket average. Within this broader context, the Airport Infill
Micro-Market exhibits even stronger fundamentals, with a five-year rent growth of 14.8% and a 6.0% premium to the Q2 2025 Atlanta average. Both the submarket and micro-market have demonstrated consistency with positive absorption in eight of the past ten years. Despite delivering 730 KSF in 2025 YTD (0.6% of total inventory), the Airport Infill Micro-Market’s new supply remains constrained with only two properties 250 KSF and below delivered since 2023.
Camp Creek Commerce Center presents an exceptional value-add investment opportunity given its prime location, high-quality tenancy, future upside potential, and its position to capitalize on the robust growth in the Airport Infill Micro-Market.
ADDRESS 5001 N Commerce Dr | East Point, GA RBA
TENANCY Grady Hospital
AIRPORT INFILL MICRO-MARKET
220,127 TOTAL SQUARE FEET
LESS THAN 1 MILE FROM I-285
2 CONCRETE, FULLY LIT TRAILER PARKING LOTS IN-PLACE TERM9.5 YEARS IN-PLACE ESCALATIONS - 3.50% IN-PLACE TENANTGRADY HEALTH SYSTEM ($2.4B REV ‘24)
VALUE-ADD OPPORTUNITY - 68% LEASED + TRAILER LOTS
PROPERTY HIGHLIGHTS
• Concrete tilt-wall construction
• Multi-tenant configuration
» 37 dock-high doors
» 2 drive-in doors
• 32’ clear height
• 185’ truck court
• 45-mil TPO roof with 15-year warranty
• 310’ x 702’ building dimensions
» 54’ x 50’ column spacing
• ◊ 60’ speed bays
• Ample auto and trailer parking
• 108 auto spaces
• 31 trailer spaces
• ESFR sprinkler system
• 2 concrete, fully lit trailer parking lots
» 117 and 40 spaces
» Situated on 4.86 acres
FINANCIALS HIGHTLIGHTS
• High-quality tenancy
» Grady Health System (2024 Revenue: $2.4B | 2024 Net Assets: $1.7B)
◊ Over 123 years of operating experience
» Atlanta’s largest safety-net provider and only Level I trauma center in the region with specialized healthcare logistics operations
» Anticipated $12M investment in their space
• 68% leased with 9.5 years of term remaining (7.2 years firm, 8 years of equivalent rent obligation with penalty)
» 3.50% annual escalations
» $12 million investment in their space
» NNN lease with limited landlord responsibilities
» 46,894 SF dedicated pharmacy operation for medication storage and distribution
• 69,585 SF unit and two lit trailer parking lots available for lease-up creating value-add opportunity
• Infill location with exceptional accessibility to I-285, Hartsfield-Jackson International Airport and the Atlanta metro
• Total population of 5.3 million people with a 60-minute drive
• Access to high quality, growing labor force via Atlanta MSA
» 6th largest metropolitan area in the U.S.
» 1.6 million people and a labor force of ~200,000 can be reached within a 30-minute drive
• Major throughfares
» 0.6 miles to I-285
» 2.0 miles to I-85
» 7.0 miles to I-75
• Atlanta sits at the intersection of three major interstates, serving as a pivotal logistics hub for the Southeast and U.S.
» Two Class A railroads, CSX and Norfolk Southern
» Georgia’s six U.S. interstates include two major transcontinental interstates and provide 1,200 miles of interstate highway
» Georgia products can reach 80% of Americans within a 2-day drive
• Proximity to the world’s busiest airport
» 4.5 miles from Hartsfield Jackson International Airport
» 80% of U.S. population within a 2-hour flight
» Serves 275,000 passengers daily
» 13.0 miles from FedEx Hub capable of handling 15,000 packages an hour
• Located in one of Atlanta’s best areas for Southeast connectivity
» Access to the Port of Savannah (~220 miles)
» Connectivity to dense population centers of the Florida Markets
AIRPORT I-85 SUBMARKET
• Average rent increase of 14.5% since 2021
• Rent performance
» 5-year average rent increase of 14.5%
◊ Outperforming the 5-year Atlanta average by 381 bps
» 3.0% premium to the Atlanta average
» 70 KSF and below spaces command a 39% premium over submarket average
• Positive absorption of more than 1.2 MSF YTD in properties 250 KSF and below, representing 2.5% of inventory
» Positive absorption for all sizes 8 of the last 10 years
AIRPORT INFILL MICRO-MARKET
• Rent performance
» Average rent increase of 14.8% since 2021
◊ Outperforming the 5-year Atlanta average by 413 bps
» 6.0% premium to the Atlanta average
◊ 70 KSF and below properties achieve 38% premium over general micro-market average rates at $11.99 PSF
• Positive absorption of more than 1.0 MSF in 2025 YTD in properties 250 KSF and below
» Positive absorption for all sizes 8 of the last 10 years
• 730 KSF delivered in 2025 YTD, representing 0.6% of the total inventory
» Only 2 properties 250 KSF and below delivered since 2023
TENANT OVERVIEW
TENANCY Grady Health System
TENANT HOMEPAGE www.gradyhealth.org
SF
7.2 years (1/31/33)
TO LXD 27 months
PENALTY $1,161,467 (~7 Months Rent)
OVERVIEW
• Nonprofit healthcare corporation serving as metro Atlanta’s largest safety-net provider
• Only Level I trauma center in the region, providing critical emergency services to the greater Atlanta metropolitan area
• Operating 123+ full years, established in 2008 following restructuring of The Fulton-DeKalb Hospital Authority
• $2.4B in total revenue (2024), representing 16.3% growth over 2023 ($2.03B)
• Strong operating income of $233.9M (9.9% operating margin)
• Robust liquidity with $732.5M cash and cash equivalents
• Diversified revenue streams including Medicare (37%), Medicaid (15%), and other third-party payors
• $2.4B in total assets as of December 31, 2024
• Strong financial position with $1.78B in net assets
• 2024 Revenue: $2.4B
» 16.3% growth over 2023 ($2.03B)
• 2024 Operating Income: $233.9M
» 9.9% operating margin
• Net Assets: $1.7B
• 123 years of operation
• Only Level I trauma center in the region
OPERATION
• 46,894 SF dedicated pharmacy operation for medication storage and distribution
» Includes 9,000 SF of lab pharmacy space
• Hospital supplies warehousing and inventory management
• Equipment repair facility for beds and other medical equipment
• General administrative office space supporting logistics operations
PROPERTY OVERVIEW
PROPERTY SPECIFICATONS
BUILDING NAME Camp Creek Commerce Center
ADDRESS 5001 North Commerce Drive
OFFICE SF 2,436
ACREAGE 45 YEAR BUILT 2024
CLEAR HEIGHT 32'
CONSTRUCTION TYPE Concrete Tilt-Wall
CONFIGURATION Multi-Tenant
ROOF 45-mil TPO (15 Yr. Warranty)
DOCK-HIGH DOORS 37
DRIVE-IN DOORS 2
BUILDING DEPTH 310'
TRUCK COURT DEPTH 185' (Fully concrete)
TRAILER PARKING 31
COLUMN SPACING 54' w x 50' d
SPEED BAY SPACING 60'
FLOORING 6" Concrete Slab FIRE PREVENTION ESFR LIGHTING LED
TRAILER PARKING LOT 1
TRAILER PARKING LOT 2
TRAILER
MARKET OVERVIEW
ATLANTA INDUSTRIAL MARKET
• Average asking rents increased to $7.05 PSF in Q2 2025, reflecting 51% growth from 2019 ($4.64), while our underwriting assumption of $6.65 PSF remains conservative relative to current market rates
» 10.7% increase on average since 2021
• Robust leasing activity with 8.9 MSF signed in Q2 and 19.4 MSF YTD
» 71.2 % representing new leases, signaling continued strong market interest
• Average vacancy of 6.5% since 2021
• Under construction volumes have decreased 48.6% YoY to just 9.7M SF (down from Atlanta’s 5-year average of 28.2M SF), reducing potential competitive inventory and positioning existing buildings for premium value
Annual Leasing Volume Reach 3rd Largest Volume on Record
AIRPORT I-85 SUBMARKET
MARKET OVERVIEW | Q1 2025
• Rent performance
» Average rent increase of 14.5% since 2021
◊ Outperforming the 5-year Atlanta average by 381 bps
» 3.0% premium to the Atlanta average
» 70 KSF and below spaces command a $39% premium over submarket average
• Positive absorption of more than 1.2 MSF YTD in properties 250 KSF and below, representing 2.5% of inventory
» Positive absorption for all sizes 8 of the last 10 years
• Rent performance
» Average rent increase of 14.8% since 2021
◊ Outperforming the 5-year Atlanta average by 413 bps
» 6.0% premium to the Atlanta average
◊ 70 KSF and below properties achieve 38% premium over general micro-market average rates at $11.99 PSF
• Positive absorption of more than 1.0 MSF in 2025 YTD in properties 250 KSF and below
» Positive absorption for all sizes 8 of the last 10 years
• 730 KSF delivered in 2025 YTD, representing 0.6% of the total inventory
» Only 2 properties 250 KSF and below delivered since 2023
WHY ATLANTA: EPICENTER OF THE SOUTHEAST
DEMOGRAPHICS
Atlanta has consistently grown by roughly 80,000 people per year. With no signs of slowing, the metro is expected to exceed 8.6 million people by 2050.
Best Place to Live in the U.S. 2022-2023
Source: Money Magazine
Best State for Doing Business, eight consecutive years
Source: Site Selection Magazine
Busiest Airport in the World, both number of passengers and number of flights
Source: Money Magazine
POPULATION GROWTH
in the nation for the most net migration
Metro Atlanta Chamber
ALL ROADS LEAD TO ATLANTA
Interstate connectivity: Atlanta sits at the intersection of three major interstates, serving as a major logistics hub for the Southeast and U.S.
• Georgia’s six U.S. interstates include two major transcontinental interstates (I-95 and I-75) and provide 1,200 miles of interstate highway
• 20,000+ miles of state and federal highway
• Georgia products can reach 80% of Americans within a 2-day drive
• $14 billion of approved funding for new roadways on trucking routes
First airport worldwide to hit 100M passengers in one year
Not only is Atlanta in the top 10 markets for absolute net migration, the pace of growth is the 4th highest in the nation, and we expect to keep up that momentum. the population of the metro area is forecasted to grow by 2.4 million, and the city of Atlanta is projected to grow by nearly 50% in the same time frame — from
THE NEXT 30 YEARS
of U.S. population within a 2-hour flight The airport generates almost $35B for the metro Atlanta economy World’s most efficient airport for 17 consecutive years by Air Transport Research Society
ATLANTA’S HARTSFIELD-JACKSON INTERNATIONAL AIRPORT Serving an average of 275,000 passengers daily World’s busiest airport in passengers, 22 of 23 years since 1998
FINANCIAL OVERVIEW
LEASE ABSTRACT
Tenant Grady Health System
Lease Commencement
Lease Expiration
Early Termination Date
Leased Square Feet
Security Deposit
February 1, 2025
April 30, 2035 (123 full calendar months from Commencement Date)
January 31, 2033 (27 months prior to Lease Expiration)
150,542 rentable square feet
$119,806.34
Tenant’s Proportionate Share 68%
Early Termination Penalty
RENT
$1,161,467 (~7 Months Rent)
Tenant shall pay Basic Rent according to a specified schedule over the term of the lease. For the first three months (February 1, 2025 - April 30, 2025), Tenant pays $0.00 as a rent abatement period. Starting May 1, 2025 through January 31, 2026, rent begins at $9.55 per rentable square foot ($119,806.34 monthly), and increases annually thereafter. From February 1, 2026 to January 31, 2027, the rate increases to $9.88 per square foot ($123,999.56 monthly). The rent continues to escalate annually with the final period from February 1, 2035 to April 30, 2035 reaching $13.47 per square foot ($168,983.40 monthly). In addition to Basic Rent, Tenant is also responsible for Additional Rent, which includes Tenant’s Proportionate Share of Operating Costs, Taxes and Insurance Costs.
OPERATING EXPENSES
Operating Costs shall include expenses and disbursements that Landlord incurs in connection with the ownership, operation, and maintenance of the Project, including: wages and salaries of employees, supplies and materials, utilities for common areas, repairs and maintenance of the Project including paving and parking areas, service contracts with independent contractors, professional services, environmental insurance or management fees, insurance deductibles, management fee totaling three percent of annual Basic Rent, and certain capital improvements.
Operating Costs shall not include costs for capital improvements (except as specified), repairs paid by insurance proceeds or by Tenant or third parties, interest or amortization on loans to Landlord, depreciation, leasing commissions, legal expenses not benefiting all Project tenants, Taxes, Insurance Costs, and renovating space for occupants.
Tenant shall also pay Tenant’s Proportionate Share of the Taxes and Insurance Costs for each year and partial year falling within the Term. Tenant shall pay monthly installments in advance based on Landlord’s good faith estimate, subject to annual reconciliation.
TENANT RESPONSIBILITIES
Tenant shall maintain the Premises, including the loading areas and dock, loading dock equipment, and not permit damage to any portion of the Premises. Tenant shall repair, replace and maintain in good condition: loading docks, sump pumps, dock wells, dock equipment and loading areas, dock doors, dock seals, overhead doors, “levelers” and similar leveling equipment, plumbing, water, fire sprinkler system, and sewer lines up to points of common connection, entries, doors, ceilings, windows, interior walls, interior side of demising walls, heating, ventilation and air conditioning systems, and other building and mechanical systems serving the Premises.
Tenant shall provide janitorial services to the Premises and maintain the Premises in a clean and safe condition. Tenant shall store trash in designated receptacles and arrange for regular pickup.
Tenant shall pay for all water, gas, electricity, heat, telephone, sewer, sprinkler charges and other utilities and services used at the Premises, together with taxes, penalties, surcharges, connection charges, maintenance charges related to Tenant’s use.
LANDLORD RESPONSIBILITIES
Landlord shall maintain and replace the Building’s Structure, which does not include skylights, windows, glass or plate glass, doors or overhead doors, special fronts, or office entries, dock bumpers, dock plates or levelers, loading areas and docks, and loading dock equipment. Landlord shall maintain the parking areas and other common areas of the Building, including driveways, alleys, landscape and grounds surrounding the Premises and utility lines. All costs in performing this work shall be included in Operating Costs.
TENANT IMPROVEMENT ALLOWANCE
ORIGINAL LEASE:
Landlord shall provide a Construction Allowance of $2,408,672.00 to be used only for the cost of preparing the Plans and for hard costs in connection with the Landlord’s Work. The Construction Allowance may not be used for cabling, equipment, furniture or other personal property items.
Any portion of the Construction Allowance not requested to be disbursed by Tenant on the date that is fourteen (14) months after the Commencement Date shall be the sole property of Landlord, and Tenant shall not be entitled to any credit, payment or abatement on account thereof.
LEASE ABSTRACT CONTINUED
LEASE AMENDMENT NO. 1:
The Construction Allowance has been reduced to $2,241,345.00, with $167,327.00 allocated to Landlord for costs incurred in connection with design of the originally proposed tenant improvements and Landlord’s Work (which includes construction of the demising wall).
Tenant shall have the right to apply the Construction Allowance toward the Total Construction Costs. No advance of the Construction Allowance shall be made by Landlord until Tenant has first paid to the contractor from its own funds the anticipated amount by which the projected Total Construction Costs exceed the amount of the Construction Allowance.
The Construction Allowance must be used (Work fully complete and Construction Allowance disbursed) within fourteen (14) months following the Commencement Date or shall be deemed forfeited.
PERMITTED USE
General office use, warehouse for storage of hospital supplies, bed and other equipment repair, pharmacy use, and trash compacting.
RENEWAL OPTIONS
Tenant shall have a right to renew this Lease for two (2) additional periods of five (5) years each, by delivering written notice of the exercise thereof to Landlord not earlier than 12 months nor later than nine months before the expiration of the then current Term. The Basic Rent payable for each month during each such extended Term shall be the prevailing rental rate at the commencement of each such extended Term for renewals of space in the Building of equivalent quality, size, utility and location, with the length of the extended Term and the credit standing of Tenant and consideration for free rent and Landlord provided tenant improvements to be taken into account.
If Tenant rejects Landlord’s determination of the Prevailing Rental Rate, Tenant may propose its own Prevailing Rental Rate. If the parties cannot agree, they shall negotiate in good faith for 45 days. If no agreement is reached, the parties shall each select a SIOR designated, State of Georgia licensed real estate agent who will select a third agent to propose a new rate. The Final Prevailing Rental Rate shall be calculated using the average of the Broker Rate and either the Tenant Prevailing Rental Rate or the Landlord Prevailing Rental Rate, whichever is closer to the Broker Rate.
EARLY TERMINATION OPTION
Tenant shall have the one time right to terminate the Lease with respect to the entire Premises only (the “Termination Option”) effective as of January 31, 2033 (the actual date of early termination, the “Early Termination Date”), if:
(i) No Event of Default exists on the date Tenant provides Landlord with a Termination Notice (hereinafter defined); and (ii) no part of the Premises is sublet for a term extending past the
applicable Early Termination Date or is sublet under an agreement that contemplates an early termination of the sublease that corresponds with Early Termination Date; and (iii) the Lease has not been assigned (except in connection with an assignment to an affiliate of Tenant, as permitted under the Lease); (iv) Landlord receives notice of termination (“Termination Notice”) prior to January 31, 2032; and (v) Tenant has not exercised its Right of First Refusal pursuant to Exhibit H to the Lease.
If Tenant exercises its Termination Option, Tenant, simultaneously with delivery of the Termination Notice, shall pay to Landlord an amount equal to One Million One Hundred Sixty One Thousand Four Hundred Sixty Seven Dollars ($1,161,467.00) (collectively, the “Termination Fee”), as a fee in connection with the acceleration of the expiration date of the Lease and not as a penalty. Tenant shall remain liable for all Basic Rent, Additional Rent and other sums due under the Lease up to and including the Early Termination Date even though billings for such may occur subsequent to the Early Termination Date.
RIGHT OF FIRST REFUSAL
Tenant shall have a right of first refusal with respect to the approximately 69,585 square feet of space in the Building shown on Exhibit A (the “Refusal Space”). When Landlord has a bona fide third party offer from a prospective tenant interested in leasing all or any portion of the Refusal Space upon terms acceptable to Landlord, Landlord shall advise Tenant of the terms under which Landlord and such Prospect are prepared to lease the Refusal Space. Tenant may lease the Refusal Space under such economic terms by providing Landlord with written notice of exercise within eight (8) business days after receipt of Landlord’s advice.
The term for the Refusal Space shall commence upon the commencement date stated in the Advice and all terms stated in the Advice, including the termination date, shall govern Tenant’s leasing of the Refusal Space.
Tenant’s rights with respect to the Refusal Space shall automatically terminate on the earlier of: (i) the expiration of the initial Lease Term; (ii) Tenant’s failure to exercise its Right of First Refusal within the specified period; and (iii) the date Landlord would have provided Tenant an Advice if Tenant had not been in violation of one or more of the conditions.
PARKING
Tenant shall have the exclusive right to use such parking spaces associated with the Building as are allocated to Tenant by Landlord. Parking spaces for automobile vehicles will be available to Tenant without charge during the Term. The parking spaces allocated to the Tenant for the Initial Term are shown on Exhibit I.
FINANCIAL ASSUMPTIONS
VALUATION NOTES
· Grady's Early Termination Option is not considered in our underwriting
