We’ve acquired an approximately 100,000 square foot industrial building in Atlanta, GA, for a purchase price of roughly $13 million. Located about 15 minutes from downtown Atlanta and only a mile from highway I-75, we believe this is an attractive location for online retail businesses seeking flexible office space and storage options in the Atlanta area.

This acquisition was made by the Fundrise eFund, and, in addition to the purchase price, we have budgeted for tenant improvement costs and other soft costs, bringing our total projected commitment to approximately $19.5 million.

Strategy

Value Add

Acquire real estate that needs improvements and / or lease-up

  • Risk-return profile: Moderate to high
  • Expected timing / delay of returns: Several months to a year
  • Expected source of returns: Growth with some income

More about our strategies

Note that this section is intended to provide a general overview of the Value Add strategy for educational purposes only, and is not meant to be representative of the specific details of any individual investment. All investments involve risk and there are no guarantees of any returns.

Business plan

We made this acquisition as part of our recently announced partnership with Saltbox — a technology-driven company that provides flexible storage and warehouse solutions for other business clients, organizations, and entrepreneurs. Saltbox offers services and rental options akin to a “co-workspace,” but with a focus on industrial and warehouse solutions rather than traditional office space.

As part of our partnership, we identified this property as an excellent fit for Saltbox’s business requirements, and, following initial improvements that we will perform to the property to further optimize the space, Saltbox plans to occupy the site.

Our collaboration with Saltbox is part of a strategic shift for the Fundrise eFund, as we move away from the fund’s original focus on for-sale housing and instead prioritize industrial properties well-suited for e-commerce operations — an asset type that has shown excellent performance throughout the pandemic. Consumer preferences have shifted continuously toward e-commerce in recent years, as brick-and-mortar retail properties have suffered. In addition, as new data has shown our economy at the highest year-over-year inflation rates in roughly 40 years, we continue to believe that residential and industrial real estate assets in particular are some of the most well-positioned to hold their value in this environment.

Approximately 6.5 miles from downtown Atlanta, the property is convenient and accessible to e-commerce businesses across the MSA in need of the flexible, industrial office and storage solutions that Saltbox provides.

Overall, our goal is to operate the property over the long term with Saltbox as our initial tenant while earning regular rental income, and then eventually selling the property at a profit.

Why we invested

  • Prime location: Just 15 minutes from downtown Atlanta and within two miles of two major highways, the property is well-positioned to serve as ​​flexible office and industrial storage solutions for e-commerce businesses in the area.

  • Growing e-commerce demand: As online retail becomes not just more common but the default shopping experience for consumers across the country, more e-commerce businesses are setting down roots in virtually every city and MSA. As these e-commerce companies grow, they demand storage and office solutions near where their employees live and operate, often with flexible scaling potential, such as what Saltbox provides.

  • High-demand property type: Despite the continuing, fast growth of e-commerce delivery — a trend that was only accelerated by the COVID-19 pandemic — zoning restrictions have limited the amount of new supply of industrial properties available. As the Atlanta region continues to expand, fewer industrial sites with prime locations and direct access to the area’s key highways remain available, increasing the potential value of properties like this one.

As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.