Emerald Creek Lends $23M on Tennessee Industrial Mixed-Use Acquisition 

Emerald Creek Capital has provided a $22.7 million loan to a joint venture between Alpaca Real Estate and LRC Properties for the acquisition of a mixed-use industrial site in Smyrna, Tenn., Commercial Observer has learned. 

The property, at 328 Weakley Lane, consists of a 100 percent occupied, 245,000-square-foot warehouse and 17.5 acres of fully leased industrial outdoor storage. 

Emerald Creek’s Christian Galanti, Michael Cleaver and Matthew Fantuzzi led the deal on behalf of the lender, while CBRE’s Brian Linnehan negotiated the debt. 

“We are excited to be involved in this transaction, which underscores our focus on lending to strong borrowers and high-quality, functional industrial properties in core logistics markets,” Galanti told CO. 

Just last week, Alpaca Real Estate announced the formation of a $250 million industrial strategy to acquire a portfolio of infill logistics properties in high-growth markets in the Southeast and Southwest. 

Kicking that strategy off were two properties totaling 500,000 square feet in Nashville, acquired off-market and purchased via Alpaca and LRC’s newly established joint venture. Nashville’s Southeast submarket is a target market for the new JV, due to its high demand and vacancy rate of less than three percent. 

“Infill logistics assets make up the largest component of the U.S. industrial market, supported by strong demand drivers including e-commerce; onshoring and nearshoring; and long-term supply constraints fueled by limited land availability and high construction costs,” Peter Weiss, managing partner of Alpaca Real Estate, said in the release. “These tailwinds stand to remain in place as potential trade policy impacts take hold.”

In the release, LRC Managing Partner Howard Lavitt said LRC is excited for the partnership with Alpaca, and “to continue our strong history investing in logistics assets in Nashville. Nashville has been a tremendously successful market for LRC driven by resilient demand, a great labor pool and continued rent growth throughout multiple cycles,” he said. 

Alpaca confirmed the loan but declined to comment. LRC couldn’t immediately be reached for comment.

Cathy Cunningham can be reached at ccunningham@commercialobserver.com