Glenstar Lands $32.8M to Build First Spec Warehouse at its 290-Acre Industrial Park in Upstate South Carolina

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.