ElmTree Funds Acquires 302,400-SF Gray Industrial Center Building 2 in Shelbyville, Kentucky in Forward-Funded Deal

Elmtree Funds has acquired Gray Industrial Center Building 2, a newly completed 302,400-square-foot Class A distribution facility located at 530 Logistics Drive in Shelbyville, Kentucky, approximately 30 miles east of Louisville. Colliers announced the transaction on July 16, 2026, noting the deal closed as a forward-funded acquisition upon completion of the facility.

Deal Structure and Brokerage Teams

Colliers Industrial Capital Markets advisors Alex Cantu, Alex Davenport, Jeff Devine, Steve Disse and Tyler Ziebel represented the seller, Gray Development, in the transaction. Local CBRE leasing advisors Doug Butcher and Alex Grove also advised on the deal. The property was acquired by ElmTree Funds in a forward-funded structure, meaning the acquisition closed upon the facility's completion rather than prior to delivery.

"Gray Industrial Center Building 2 demonstrates the continued demand for build-to-suit industrial facilities in strategically located markets like Shelbyville, where access to the I-64 corridor and the greater Louisville region continues to attract both occupiers and institutional capital," said Alex Cantu. "Forward-funded acquisitions of newly completed, fully leased assets remain highly attractive to investors seeking modern industrial product supported by long-term tenancy and strong market fundamentals."

Property Specifications and Location

The build-to-suit distribution facility is fully leased to Kuehne+Nagel, a global logistics provider. Situated on approximately 32.19 acres, Gray Industrial Center Building 2 features 36-foot clear height, 43 dock doors, two drive-in doors, ESFR fire suppression, 56-foot by 54-foot column spacing with 70-foot speed bays, a 140-foot truck court, 61 trailer parking spaces and 334 auto parking spaces.

The property is located approximately one mile from Interstate 64, providing convenient access to Louisville International Airport and UPS Worldport. Shelbyville has emerged as one of the Louisville region's fastest-growing industrial submarkets, driven by sustained manufacturing investment, expanding distribution activity and its position along the I-64 corridor.

Market Context

The forward-funded structure of the Gray Industrial Center Building 2 transaction allowed Gray Development to monetize the project at delivery while providing ElmTree Funds with a newly completed, fully occupied asset. The deal's structure is consistent with a core investment strategy, targeting stabilized income-producing properties with limited lease-up risk.

Shelbyville Industrial Submarket

According to Colliers, Shelbyville continues to attract both occupiers and institutional investors due to its strategic location along the I-64 corridor and proximity to the broader Louisville logistics ecosystem. The submarket has seen sustained manufacturing investment and expanding distribution activity, factors that Colliers cited as underpinning demand for newly delivered industrial product in the area.

Financial terms of the transaction, including sale price, price per square foot and cap rate, were not disclosed.

Sources: Colliers — Sale of Gray Industrial Center Building 2