SkyREM Sells 400,800-Square-Foot Atlanta Industrial Facility Through JLL
SkyREM has sold 5070 Phillip Lee Drive SW, a 400,800-square-foot industrial campus in Atlanta's Fulton Industrial submarket, the New York- and Philadelphia-based real estate investment firm announced. JLL Capital Markets represented SkyREM in the disposition, with Jim Freeman, James Platek and Paige Marlow leading the assignment.
The buyer, Sagard Real Estate, acquired the property on behalf of its open-end core-plus real estate fund. The transaction closed September 16, 2026.
Property and Tenant Overview
The campus at 5070 Phillip Lee Drive SW, Atlanta, GA 30336 comprises four contiguous warehouse buildings on 15.5 acres within the I-20 West corridor. The facility is 100% leased to Kittrich Corporation, a consumer products manufacturer that has occupied the property for more than 20 years, using the facility to support both production and distribution operations.
The buildings feature 48 dock-high doors, two ramped drive-in doors, deep truck courts and multiple points of ingress and egress. The site sits approximately two miles from Interstate 20 and four miles from Interstate 285, providing access to downtown Atlanta and Hartsfield-Jackson Atlanta International Airport.
In March 2025, Kittrich signed a long-term lease renewal at the property. As part of that agreement, SkyREM committed capital for parking lot replacement, office and bathroom renovations, LED lighting upgrades, perimeter fencing, exterior painting and new loading dock packages. At the time of sale, the lease carried approximately 4.5 years of remaining term, with rents running 12.8% below market.
SkyREM's Investment Rationale
SkyREM acquired 5070 Phillip Lee Drive in 2015, holding the asset for roughly 11 years before executing the sale. Marc Civitillo, Chief Operating Officer of SkyREM, described the outcome as consistent with the firm's portfolio strategy.
"5070 Phillip Lee Drive has been a successful long-term investment for SkyREM, and this transaction reflects our disciplined approach to creating value and recycling capital across our portfolio," Civitillo said. "The sale allows us to redeploy capital into newer, larger, mission-critical industrial assets as we continue to expand our portfolio in key logistics and manufacturing markets across the United States."
The disposition follows a period of active balance-sheet management for SkyREM. In 2025, the firm secured $170 million of fixed-rate financing across a 10-asset industrial portfolio, a transaction arranged through JLL and Apollo affiliates.
Transaction and Capital Markets Context
The sale of 5070 Phillip Lee Drive reflects sustained institutional demand for single-tenant, infill industrial assets carrying long-term leases and durable occupancy. The property's combination of a fully leased position, a long-tenured tenant and below-market rents with years of remaining term aligns with the risk-return profile targeted by core-plus investment strategies.
Sagard Real Estate, a U.S. real estate investment advisor and subsidiary of global alternative asset manager Sagard, structured the acquisition through its open-end core-plus fund, which targets stabilized assets with embedded upside through future lease mark-to-market.
Atlanta's Fulton Industrial submarket benefits from proximity to two major interstate interchanges and the region's primary air cargo hub, factors that have sustained occupier demand for functional, well-located warehouse space.
About the Firms
SkyREM, with offices in New York City and Philadelphia, is a privately funded real estate investment company that owns and operates a diversified portfolio of properties across the United States. The firm invests as a principal for its own account, with a focus on industrial and other commercial real estate, long-term ownership and strategic value creation.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.
Sagard Real Estate is a U.S. real estate investment advisor and a subsidiary of Sagard, a global alternative asset management firm.