Market Mondays: Chattanooga - Nov 25

YardDogs check out IOS and industrial developments in Chattown

November 25, 2024

Yes Sir! Our IOS YardDog pack is #1 - Big Yard, Small Building, Can’t Lose!

YardDogs -

Welcome back! In this edition of Market Mondays we take a deeper dive at IOS / Overall Industrial activity in Chattanooga, TN.

In today’s email:

  • Overview: Chattanooga’s economic and population growth fueled demand in IOS and increased development in the city. Airport expansion in process to match accelerated population growth and $2.5B in capital investments are tailwinds to industrial development.

  • Acquisitions: IOS market is active - Legacy West Partners and Hight Knox are key players in the city. Each have multiple acquisitions under their belt, but there is still some opportunity.

MARKET OVERVIEW
Chattanooga, TN

OVERVIEW: Chattanooga MSA has a population of ~600k with a better than average unemployment rate of 2.7% vs. national average of 4.1%. Over the past 4 years, the city attracted 87 economic development projects, resulting in ~8,000 jobs and $2.5B in capital investment. Chattown’s population is growing 3x the average annual growth rate of the U.S.

BIG INVESTMENTS:

Volkswagen: The automobile company invested more than $3.5B since 2008, producing over 1 million cars at the facility since inception.

Airport: To support burgeoning population growth, the city unveiled $28M airport terminal project.

Site for Class A Industrial

CLOSED TRANSACTIONS
Acquisitions and Dispositions

Legacy West Partners - Michigan Ave IOS Site

ACQUISITIONS: Legacy West Partners built out an industrial presence in Chattanooga, with acquisitions of an IOS site strategically located between TN-60 and US-11 and in September 2024 purchased another industrial site next to the airport. With recent Airport terminal renovations, the property has re-tenancy upside potential with the growing needs of the Chattanooga airport. Congrats to the Legacy West Partners team on this buildout - excited to see what’s next!

Hight Knox Properties Acquired IOS Site at 806 North Holtzclaw

ACQUISITIONS: Hight Knox Properties closed on 806 North Holtzclaw in November. The site is 8.25AC with ~5.25AC of outdoor storage and trailer parking. Site was purchased vacant and leased long-term prior to close to a foundation and waterproofing services provider. Hight Knox also had the deal of the year……

Hight Knox purchased two fully leased industrial buildings in March

CITY DEAL OF THE YEAR: In an off-market deal, Hight Knox acquired two industrial buildings for $18.7 million. The two Class C buildings comprise 876,400 square feet and sit on 30.7 acres.

NAI/Charter David DeVaney and Chad Wamack of NAI Charter represented Hight Knox. Rise Partners' John Tugman and Wilson McGinness represented JDK Real Estate, the seller. Congrats to the Hight Knox team!

Know of other great Chattanooga IOS acquisitions from 2024 that we missed? Send us a note at [email protected] or just reply to this email. We answer every email you send our way!

Disclaimer: The authors of IOS YardDogs are not finance or tax experts. We love big yards, small buildings. This email is for educational uses and is not financial / investment advice. Please conduct independent research and consult with industry professionals before making financial or investment decisions. Our content, which may contain affiliate links, is subjective and not to be used as the only basis for such decisions. We are not responsible for any losses from relying on this information.