CrossHarbor Capital Partners Makes $38M Construction Loan for Massive Industrial Site
Financing to fund the first phase of a 3.6 million square foot industrial park in South Carolina
By Brian Pascus September 15, 2023 1:24 pm
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Glenstar, a Chicago-based developer specializing in industrial transactions, has secured $38.2 million in construction financing to build the first phase of Cherokee Commerce Center 85, a five-building, 290-acre industrial park in Gaffney, S.C.
CrossHarbor Capital Partners provided the loan, while Chicago-based Creek Lane Capital served as Glenstar’s capital partner on the transaction. Loan terms were not disclosed.
Located off the four-way I-85 interchange that provides quick access to nearby Charlotte, Spartanburg, and Charleston, Glenstar’s new development will be Gaffney’s largest industrial park upon completion. The first phase is expected to be finished in fall 2024. More than 100 million potential customers are within a one-day drive of the upcoming facility.
“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 U.S.”
The first phase of Cherokee Commerce Center 85 is expected to span more than 550,000 square feet, while the entire five-building project will eventually reach 3.6 million square feet. Built to meet the customized needs of each industrial tenant, the facilities will include 40-foot clear heights, 60-foot speed bays, and feature 232 dock doors, 540 parking spaces, and 452 trailer spaces.
Glenstar principal Brian Netzky said his firm is already receiving interest in the space from firms specializing in electric vehicle, battery and semiconductor manufacturing.
“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 Netzky in a statement.
Cherokee Commerce Center 85 enters a South Carolina submarket already saturated with industrial production. Competing sites include the nearby 1.4 million-square-foot distribution facility shared by DHL Supply Chain and Mann+Hummel, a German manufacturer of filtration systems, along with the 1 million-square-foot Techtronic Industries facility in Spartanburg and a 1.5 million-square-foot Dollar Tree distribution center in Cherokee County.
All told, the Cherokee County submarket has 11.6 million square feet of industrial space and recorded a 0.52 percent vacancy rate in Q2 2023, according to a report from Colliers (CIGI).
“Cherokee County is a hotspot for industrial development as vacancy rates remained at less than 1 percent 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.”
Along with its numerous industrial projects, Glenstar has also completed office and multifamily developments. The firm has developed more than $2 billion worth of CRE space across 10 million square feet since its 2004 founding.
CrossHarbor Capital Partners has invested more than $29 billion in real estate projects since its 1993 founding. The Boston-based firm currently has $8.7 billion assets under management, and features offices in New York, Chicago and Los Angeles.
Brian Pascus can be reached at bpascus@commercialobserver.com
