A California company is expanding its Memphis presence with a new build-to-suit facility.
Chino, California-based Lotus and Windoware Inc. has purchased 13 acres to build a new Class A 200,000-square-foot facility within the Distriplex Farms area in Southeast Memphis. Lotus, which is an importer and wholesale distributor of window treatments, purchased the site from Atlanta-based Pattillo Industrial Real Estate. Pattillo plans to develop the new facility.
The deal puts an industrial new build on the scoreboard, which is a rarity in 2024, as companies looking for new space currently prefer leasing or buying already built facilities. The new build is set to expand Lotus' local capabilities. Currently, the company leases a 165,000-square-foot property at 6225 Global Drive, which is near Distriplex Farms.
Pattillo was represented by Hank Martin and Henry Webb of NAI Saig Co. Lotus was represented by Bentley Pembroke and Greg deWitt of Avison Young, as well as Todd Blanton of Glenview Partners.
Pattillo, one of the largest privately held industrial developers in the country, owns a 45-acre site in the Distriplex Farms area. Originally, the firm planned to develop the entire site when it acquired it in 2022.
Instead, as market conditions became more volatile, it opted for a sale and build-to-suit deal with Lotus. It will be the company's first Memphis-area development, and Pattillo plans to follow a similar strategy with the remaining acreage.
"This land sale and build-to-suit development launches our broader development plans for the remaining sites we own in Distriplex Farms," said Ben Stafford, Pattillo's VP of new investments. "We’re excited to work with Lotus, and we look forward to future opportunities in Memphis."
Stafford told MBJ that the company also hopes to develop its remaining acreage for users in the 100,000 to 250,000-square-foot range. He said that the company hopes to break ground on Lotus before the year is through and to deliver the facility by the end of next year.
Martin told MBJ that he hopes the deal will also help restart the Memphis industrial construction market, which has been nearly nonexistent in 2024 as economic uncertainty and high interest rates slowed construction nationwide.
"There are signs that the market is okay," Martin said. "It's not a terrible situation at this point. If you talk to people in other markets, I think they're seeing the same thing. Markets are starting to pick up … and it's shoring up a little bit. Our market, we've had a quarter or two with not much positive absorption, so hopefully these are all signs of going in the right direction."
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Memphis-Area Commercial Real Estate Developers
Commercial S.F. developed since company founded locally
Rank | Prior Rank | Rank / Prior rank / URL |
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1 | 1 | IDI Logistics |
2 | 2 | Panattoni Development Company Inc. |
3 | 3 | Belz Enterprises |
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