“Becknell was pleased to celebrate its 25th anniversary with such an outstanding year,” said Dan Harrington, Chief Executive Officer and President. “We had a record number of development starts, nearly three times the amount of starts in 2014. Our portfolio has now reached nearly $1 billion in value. With our current development pipeline in place, we expect to increase the size of the portfolio by at least 20 percent in 2016.”
In-Service Property Results and Leasing Activity
As of December 31, 2015, Becknell owned and controlled 123 in-service properties, totaling 13.0 million square feet. The portfolio was 95.4 percent occupied on a square foot basis.
During 2015, the Company signed new leases totaling 71,000 square feet with a weighted average lease term of 3.8 years. The Company’s tenant retention rate was 83.0 percent for the year ending December 31, 2015, renewing more than 1.4 million square feet of leases with leasing spreads of 9.3 percent on average rents.
During 2015, Becknell Industrial placed in-service four developments totaling $30.5 million. Combined, these developments include nearly 536,000 square feet and have a weighted average lease term of 9.3 years. As of December 31, 2015, the Company had 13 additional projects under active development totaling more than 2.0 million square feet that is 60.6% pre-leased with a total projected investment of $136.3 million.
During 2015, Becknell completed $52.1 million of acquisitions. These 7 properties totaled more than 875,000 square feet and were 91.6 percent leased. These included:
Including the acreage previously mentioned, Becknell Industrial purchased nearly 90 acres of land in Indianapolis, Cincinnati, Spartanburg and Columbia, South Carolina; on which the Company will develop approximately 735,000 square feet.
- In Calera, Alabama, a 247,000-square-foot distribution facility fully leased to Plantation Patterns, one of North America’s leading manufacturers of cushions, pillows, umbrellas, outdoor decor and accessories;
- A 74,000-square-foot warehouse facility in the prime southwest submarket of Phoenix, Arizona;
- A 70,000-square-foot distribution facility in Whitestown, Indiana, 100 percent leased to MWI Veterinary Supply, an international animal health products supplier for veterinarians. This acquisition also includes 6.5 acres of land that can support 96,000 square feet of additional development;
- In Lenexa, Kansas, a 77,000-square-foot distribution building fully leased to Dr. Pepper Snapple Group, a leading producer of flavored beverages in North America and the Caribbean;
- An 184,500 square-foot LEED Silver distribution facility in Blythewood, South Carolina that is 100 percent leased to Husqvarna Group, a world-leading producer of outdoor power products including chainsaws, trimmers, robotic lawn mowers and garden tractors. This acquisition also includes 14.5 acres of land that can support 184,000 square feet of additional development; and
- Located in the Milwaukee, Wisconsin MSA, two industrial facilities totaling 223,200 square feet. The first, located in Butler, totals 100,000 square feet and is fully leased to three tenants including, Keystone Automotive Industries, Paragon Foam Fabricators and Snyders of Lance. The second building is fully leased to API Heat Transfer, totaling 123,200 square feet and located in Franklin.
During 2015, Becknell completed $15.2 million of dispositions. These included four properties totaling nearly 200,000 square feet and eight acres of undeveloped land.
About Becknell Industrial
Becknell Industrial specializes in the development, investment and management of industrial properties across the United States. The company currently owns interests in 136 properties totaling nearly 16 million square feet. Vertically integrated, Becknell is responsible for every aspect of the project providing the decision-making authority and expertise to meet client expectations for a high-performance facility delivered on time and on budget. More information about Becknell is available at www.becknellindustrial.com.
Shona L. Bedwell