Goldman Sachs Expands Industrial Portfolio with $101M Savannah Purchase

According to Commercial Property Executive, Goldman Sachs Alternatives (GS) has finalized a $100.6M acquisition of Rockingham Farms Building 9, a newly built Class A distribution center in Savannah, GA. 

Building Highlights

Completed in 2023, the 942.2 KSF property is fully leased to four tenants. The cross-dock facility boasts a 40-foot clear height, 183 dock-high doors, 7,500 KSF of office space, a 185-foot truck court depth, and ample parking for trailers and vehicles.

Located within the Rockingham Farms Logistics Park, a 10 MSF industrial campus, the property benefits from proximity to the Port of Savannah, only 8.3 miles away, and access to key highways like I-95 and I-16.

Market Context

Savannah’s industrial market continues to thrive, driven by increasing cargo volumes at the Port of Savannah and ongoing infrastructure investments. As of 3Q24, the market maintained a 9.0% vacancy rate, absorbing over 2.4 MSF of new supply during the quarter. YTD leasing activity reached 8.3 MSF, outpacing the previous year’s 7.8 MSF.

Cushman & Wakefield (CWK) reported 25.1 MSF of industrial projects under development in the region, including significant contributions from Hyundai’s $5.5B EV plant and related supplier facilities. Speculative developments also account for a substantial share, with nearly 30% preleased as of late September.

Scannell’s Industrial Activity

The seller, Scannell Properties, has been actively developing and selling assets within the Rockingham Farms Logistics Park. Earlier in 2024, Scannell sold Building 10, a 413.2 KSF bulk distribution facility, to DWS for $50.8M. Scannell also partnered with INDUS Realty Trust Inc. (INDT) to develop Rockingham Farms Commerce Center, a new 1 MSF project within the park.

Industrial Outlook

With Savannah’s industrial market benefiting from strong port activity and regional economic growth, Rockingham Farms Building 9 represents a strategic addition to Goldman Sachs’ real estate portfolio. The transaction underscores the area’s ongoing appeal to institutional investors seeking to capitalize on the robust demand for Class A industrial space.