Sagard Real Estate Acquires 400,800-Square-Foot Industrial Property in Atlanta's Fulton Industrial Submarket

Sagard Real Estate has acquired a 400,800-square-foot industrial property in Atlanta's Fulton Industrial submarket, the firm announced Sept. 15, 2026. The transaction adds to Sagard Real Estate's existing footprint along the Fulton Industrial Boulevard corridor and was made on behalf of the firm's open-end core-plus real estate fund.

Property and Location Details

The asset, located at 5070 Phillip Lee Drive SW in Atlanta, GA 30336, comprises four contiguous warehouse buildings across 15.5 acres. Built in 1965, the property features 48 dock-high doors, two ramped drive-in doors, deep truck courts, and multiple points of ingress and egress. Existing demising walls and office configurations provide flexibility to accommodate multiple users over time.

The site sits approximately two miles from Interstate 20 and four miles from Interstate 285, offering access to downtown Atlanta and Hartsfield-Jackson Atlanta International Airport. The submarket serves a broad base of warehouse, distribution, and manufacturing users and benefits from proximity to Atlanta's interstate network and regional labor pool.

Tenant Profile and Lease Structure

The property is fully leased to Kittrich Corporation, a consumer products manufacturer that has occupied the facility for more than 20 years. The tenant uses the property to support production and distribution operations. At the time of acquisition, approximately 4.5 years of lease term remained following a renewal, with in-place rents running approximately 12.8% below market.

That combination of long-tenured occupancy, below-market rents, and limited new competitive supply in the submarket underpins the investment thesis. At the time of acquisition, no competitive warehouse product was under construction in the Fulton Industrial submarket, with the existing development pipeline designated for data center use.

Executives Comment on the Acquisition

"Fulton Industrial remains an important infill location for manufacturing and distribution users because of its proximity to Atlanta's interstate network, labor base and major population centers," said Matt DiVito, Managing Director, Acquisitions at Sagard Real Estate. "With limited competitive warehouse development underway, we continue to see long-term value in functional industrial assets along the corridor."

"This acquisition reflects the Fund's focus on functional industrial assets in established infill locations where access to transportation infrastructure, labor and population centers supports durable tenant demand," said John Maurer, Head of U.S. Real Estate Equity at Sagard Real Estate.

"We believe the combination of a fully leased property, a long-tenured tenant and limited new competitive supply creates an attractive current-income profile with the potential for long-term value creation," said Tyler Williams, Co-Portfolio Manager of the Fund.

Atlanta Industrial Market Context

The acquisition comes as Atlanta's industrial market shows signs of stabilization after a period of elevated supply. Atlanta industrial vacancy stood at 8.2% to 9.0% in the second quarter of 2026, depending on the measure, as leasing activity absorbed available space and average asking rents rose to approximately $7.43 per square foot. The broader Atlanta industrial pipeline fell to roughly 9.4 million square feet in Q2 2026, indicating that supply growth is moderating.

Within the Fulton Industrial and I-20 West submarket specifically, the inventory base totals approximately 106.5 million square feet, with vacancy running at 6.5% — below the broader Atlanta market average — reflecting the corridor's established position among infill industrial locations.

The deal advances Sagard Real Estate's core-plus strategy of investing in functional industrial assets in established infill markets. The firm manages $6.1 billion in assets under management and is a subsidiary of Sagard, a global multi-strategy alternative asset management firm with $47 billion in assets under management. Sagard Real Estate is headquartered in Denver and maintains regional investment offices in New York City, Charlotte, Austin, Los Angeles, and the San Francisco metro area.

Sources

Sagard Real Estate — Sagard Real Estate Expands Fulton Industrial Presence with Atlanta Acquisition (Sept. 15, 2026)