20/21 Business Center spans 100-400 Northeast Drive and 6904 North Main St. in Columbia, South Carolina — Courtesy: Denholtz
Editor’s note: This story was updated Tuesday, April 15, with additional information from JLL, which sourced acquisition financing for the 20/21 Business Center.)
By Joshua Burd
Denholtz has acquired more than 98,000 square feet of flex industrial space in Columbia, South Carolina, marking its first acquisition in the state and its latest in the Southeast.
The firm, which is based in Red Bank, said the deal includes the three-building 20/21 Business Center spanning 100-400 Northeast Drive and 6904 North Main St., as well as 6.62 acres of developable land. It added that the 98,386-square-foot portfolio is at the junction of Interstate 20 and Route 21, placing tenants within a two-hour drive of all of South Carolina and giving them easy access to major hubs like Atlanta, Charleston, Savannah, Charlotte and Greenville.
“20/21 Business Center is a high-performing, institutional-grade asset strategically positioned to benefit from South Carolina’s ongoing growth and lack of inventory for flex industrial,” said Mark Mahasky, director of acquisitions and capital markets at Denholtz. “We are eager to implement our strategic investment management and maximize the asset’s potential in the months ahead.”
JLL senior managing directors Michael Klein and Jon Mikula, Senior Director Alexis Kaiser and Analyst Kevin Badger represented Denholtz in securing acquisition financing from Bank United. They noted that the property is 97.5 percent leased to 26 tenants across multiple industries, with an average suite size of 3,784 square feet, featuring 17 dock doors, 19 drive-in bays, ceiling heights ranging from 14 to 18 feet and 306 parking spaces.
The complex is also a 15-minute drive from Columbia’s central business district.
“20/21 Business Center’s diverse tenant mix, below-market rents and prime location in Columbia’s Northeast submarket resulted in a significant amount of interest from the lending community,” Kaiser said. “The property’s strong in-place cash flow, coupled with significant upside potential through lease-up of vacant space and mark-to-market of below-market rents, attracted competitive financing terms.”
Denholtz noted that Columbia, the state capital of South Carolina, is a growing hub for college students, young professionals, families and retirees. It’s also the state’s second-largest city, with 172,000 residents, while South Carolina’s low tax rate, deep talent pool and low cost of living make it one of the most business-friendly states in the Southeast.
The firm pointed to recently announced investments by several companies, including Cibra Solutions’ planned $300 million flagship lithium-ion electric vehicle battery recycling facility. There’s also Scout Motors Volkswagen’s $2 billion EV manufacturing facility currently under construction 10 miles from 20/21 Business Center.
The single-story buildings are 80 miles from in Charlotte, where Denholtz in 2022 acquired a 53,811-square-foot industrial property at 9201 Forsyth Park Drive, according to a news release. That same year, the firm made its first acquisition in Georgia with the purchase of the 358,884-square-foot Coleman Industrial Portfolio in Savannah.
“South Carolina’s favorable demographics, strong population growth and ideal location between New York City and Miami align perfectly with our long-term strategy of targeting high-growth markets with strong economic fundamentals,” said Paul Paschal, director of acquisitions for the Mid-Atlantic and Southeast at Denholtz. We are thrilled to enter this market and look forward to expanding our presence in the Southeast.”
