Glenstar Logistics and its capital partner Creek Lane Capital have officially started construction on the first phase of the 3.6 million-square-foot Cherokee Commerce Center 85 (CCC-85) near the intersection of Interstate 85 and Highway 105 in Gaffney, S.C. Site work and mass grading for the 290-acre business park in Upstate South Carolina is already underway, and the development team expects the first speculative building to start going in Q2 2024.

Representatives from Chicago-based Glenstar Logistics and Creek Lane Capital joined elected local officials and project partners earlier today at the ceremonial groundbreaking for CCC-85’s first building, which is scheduled to deliver in late 2024.

The flexible warehouse under construction is a cross-docked 555,520-square-foot facility expandable to 1.3 million square feet with 40-foot clear heights, 56-feet-by-50-feet column spacing, 60-foot speed bays, up to 232 dock doors, four drive-in doors, 540 auto parking spots and 452 trailer spaces. John Montgomery, Garrett Scott, Brockton Hall and Dillon Swayngim of the Spartanburg office of Colliers are marketing the building on behalf of ownership.

“Projects like Cherokee Commerce Center 85 meet an enormous need for high-quality industrial facilities along fast-growing logistics corridors,” said Brian Netzky, principal of Glenstar Logistics. “The rapid increase in the number of electric vehicle, battery and semiconductor factories in the Southeast makes it critical for warehouse and logistics businesses to expand and expedite delivery capabilities to quickly ship parts and materials to these manufacturers. Modern facilities with high clear heights, abundant dock doors and trailer parking are essential for these factories to be successful in fulfilling their contracts.”

In addition to the first building, CCC-85 is slated to include four additional warehouses measuring 1.65 million, 252,270, 278,200 and 211,640 square feet, to meet demand for modern industrial space along I-85 between Greenville-Spartanburg, S.C., and Charlotte, N.C. According to Netzky, possible uses for the mid- to bulk-size space at CCC-85 include distribution and warehousing, food processing, flex/light industrial, light manufacturing, logistics or refrigeration/cold storage.

“Working with pro-business Cherokee County officials, we have a long history of helping tenants and owner/occupiers secure economic incentives to maximize ROI,” said John Montgomery, managing director of Colliers. “We also fast-track occupancy so future tenants of CCC-85 can start shipping their products within a week of lease signing.”

Located at a four-way I-85 interchange, CCC-85 is 33 miles from the BMW Group Plant Spartanburg, 38 miles from Inland Port Greer in Upstate South Carolina and 45 minutes from Charlotte MSA. From CCC-85, tenants can reach 100 million consumers within a one-day drive.

The Conlan Company is serving as general contractor, while Ware Malcomb is responsible for the project design and SeamonWhiteside is managing civil engineering. CrossHarbor Capital Partners supplied $32.8 million in construction financing.

About Glenstar Logistics 

Glenstar Logistics, the industrial arm of Glenstar, develops and invests in state-of-the-art warehouse, distribution and manufacturing facilities primarily in the southeast region of the United States. Headquartered in Chicago, Glenstar Logistics leverages decades-long relationships with local brokers, logisticians and end users to provide a unique insight on key factors tenants evaluate when making site selections. With 400+ acres currently under control, the team combines decades of real estate experience and proprietary third-party data analytics to direct every aspect of the development process with the end user in mind.

About Glenstar:

Glenstar is a Chicago-based national commercial real estate firm focused on ground-up industrial development through its Glenstar Logistics division as well as the development of reimagined office and multifamily properties. Founded in 2004 by Michael Klein, along with Rand Diamond, Glenstar has successfully developed or redeveloped more than $2 billion in commercial space comprising 10 million square feet across the U.S. Its nimble, tenant-focused approach and vertically integrated structure allow Glenstar to not only pursue and execute opportunistic projects, but also oversee and manage them seamlessly. 

About Creek Lane Capital:

Creek Lane Capital is a Chicago-based real estate private equity firm founded in 2016 by the Walsh Family. The firm combines its founders’ 125 years of experience in the construction industry with an institutional quality management team to invest in a variety of real estate asset classes and markets throughout the United States. Creek Lane Capital invests alongside its developer partners on an opportunistic basis. However, it has the flexibility to take a long-term view of its investments in order to capitalize on the income and appreciation benefits of owning a portfolio of high-quality real estate on behalf of its investors.

Glenstar, a national commercial real estate developer with a concentration in industrial, announced today it has secured $38.2 million in construction financing from CrossHarbor Capital Partners to build the first phase of a 3.6 million-square-foot industrial park in Gaffney, S.C. Developed by Glenstar and its capital partner Creek Lane Capital, the five-building, 290-acre Cherokee Commerce Center 85 (CCC-85) will be located northeast of the intersection of Interstate 85 and Highway 105 and will be Cherokee County’s largest-ever industrial park upon completion.

Glenstar will now begin sitework in preparation for the first building, slated to span 555,520 square feet but expandable to 1.3 million square feet. This first phase is an example of Glenstar’s Spec-to-Suit^TM strategy, which allows it to meet customized tenant needs on an expedited timeline. This flexible building, known as 2A, will offer a cross-docked orientation, with up to 232 dock doors, four drive-in doors, 540 auto parking spots and 452 trailer spaces. Completion is slated for fall 2024.

“We’re pleased to bring our collective experience to this project and partner with such a strong development team,” said Matt Klein, Director, CrossHarbor Capital Partners. “Cherokee Commerce Center off I-85 is in one of the fastest growing transportation and logistics corridors in the US.”

Subsequent phases will potentially include four additional warehouses measuring 1.65 million, 252,270, 278,200 and 211,640 square feet, helping to meet demand for modern industrial space along the industrial corridor between Greenville-Spartanburg, S.C., and Charlotte, N.C. The facilities will feature best-in-class specifications, such as 40-foot clear heights, 56-feet-by-50-feet column spacing and 60-foot speed bays.

“This ideally located park will meet suppliers’ and manufacturers’ ongoing need for Class A industrial space with easy access to the Inland Port Greer and the Port of Charleston,” said Glenstar Principal Brian Netzky. “We’re already receiving interest from companies that support production facilities in the Southeast such as electric vehicle, battery and semiconductor manufacturers.”

The industrial submarket of Cherokee County is home to a 1.4 million-square-foot distribution facility shared by DHL Supply Chain and Mann+Hummel, a German manufacturer of filtration systems, as well as a 1 million-square-foot Techtronic Industries facility and a 1.5 million-square-foot Dollar Tree distribution center.

“Cherokee County is a hotspot for industrial development as vacancy rates remained at less than 1% at the end of the second quarter,” said Netzky. “The county has a growing population and a vast pool of quality-trained assembly and fabrication laborers, which draws users from across the country.”

According to Colliers, the Cherokee submarket has 11.6 million square feet of industrial space and recorded a 0.52% vacancy rate in Q2 2023, well below the national average. The report also cited several reasons for South Carolina’s growth, including significant investments in the interstate system, the Port of Charleston and the Inland Ports as well as a business-friendly regulatory environment, low unionization rate and abundant labor supply.

“CCC-85 represents Glenstar’s bullish outlook on manufacturing and distribution hubs in the Upstate as well as throughout the Southeast,” said Netzky.

CCC-85 is conveniently located at a 4-way I-85 interchange 33 miles from the BMW Group Plant Spartanburg, 38 miles from Inland Port Greer in Upstate South Carolina and 45 minutes from Charlotte MSA, one of the fastest growing cities in the U.S. From CCC-85, tenants can reach 100 million consumers within a one-day drive. Tenants and owner/occupiers will also have access to meaningful state (and county) incentives to help fund the cost of locating or expanding in the region.

The Conlan Company is serving as general contractor, while Ware Malcomb is the architect for the project and SeamonWhiteside is the civil engineer. The project will be leased by John Montgomery, Garrett Scott, Brockton Hall and Dillon Swayngim of the Spartanburg office of Colliers.

About Glenstar:

Glenstar is a Chicago-based national commercial real estate firm specializing in industrial development, reimagined office and multifamily properties. Founded in 2004 by Michael Klein, along with Rand Diamond, Glenstar has successfully developed or redeveloped more than $2 billion in commercial space comprising 10 million square feet across the U.S. Its nimble, tenant-focused approach and vertically integrated structure allow Glenstar to not only pursue and execute opportunistic projects, but also oversee and manage them seamlessly.

About Creek Lane Capital:

Creek Lane Capital is a Chicago-based real estate private equity firm founded in 2016 by the Walsh Family.  The firm combines its founders’ 125 years of experience in the construction industry with an institutional quality management team to invest in a variety of real estate asset classes and markets throughout the United States.  Creek Lane Capital invests alongside its developer partners on an opportunistic basis.  However, it has the flexibility to take a long-term view of its investments in order to capitalize on the income and appreciation benefits of owning a portfolio of high-quality real estate on behalf of its investors.

About CrossHarbor Capital Partners:

Founded in 1993, CrossHarbor Capital Partners is a leading real estate investment manager offering a multi-strategy investment platform providing investors with broad access to opportunities across property types, geographies, and the capital structure.  With a $29 billion investment track record, the firm currently has $8.7 billion in assets under management in several investment programs along the risk-return spectrum.  Through its nation-wide, relationship-driven origination platform, disciplined investment approach, and highly experienced team of professionals, CrossHarbor seeks to generate consistent, risk-adjusted outperformance while focusing on capital preservation. In 2009, CrossHarbor acquired the Yellowstone Club in Big Sky, Montana out of bankruptcy proceedings, turning it into one of the world’s premier destinations. Its subsequent Big Sky investments are managed through its subsidiary, Lone Mountain Land Company. CrossHarbor is based in Boston with offices in New York, Chicago and Los Angeles. For more information, please visit www.CrossHarborCapital.com.