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THE PROPERTY

A 290,160 SF, Class A Industrial Building Delivered in 2023 in the Greenbrier Corridor of Madison, Alabama: Acquired Vacant with Immediate Leasing Opportunity

The property at 10121 Greenbrier Parkway in Madison, Alabama is a 290,160 square foot Class A industrial building delivered in 2023, situated on 26.04 acres along Greenbrier Parkway in the rapidly growing industrial corridor connecting Interstate 565 and Interstate 65. The building is concrete tilt-up construction with a concrete slab foundation and interior steel framing, designed to institutional bulk-distribution specifications. Key physical features include 32-foot clear height, 52-foot by 50-foot column spacing, a 6-inch concrete slab floor, 42 dock doors, three wide drive-in ramps, 47 trailer parking spaces, and 138 vehicle parking spaces. The building is equipped with 480V, 3,000-amp, three-phase power, ESFR fire suppression, motion-sensing LED lighting, and a TPO membrane roof, meeting Class A requirements for large-format logistics and manufacturing tenants.

The property was originally occupied by a foreign manufacturer receiving tax incentives for domestic production in the United States. A federal policy change eliminating those incentives caused the tenant to vacate unexpectedly, prompting the prior owner to bring the asset to market. The property was acquired for $21,250,000 ($73.24 per square foot), representing an attractive entry basis for a brand-new, fully improved industrial building in a market experiencing meaningful employer-driven demand growth.

THE RRA SOLUTION

$14,050,000 First-Position Bridge Loan with a $2,050,000 Tenant Improvement and Leasing Cost Holdback Structured for a Spec Lease-Up

RRA provided a $14,050,000 first-position acquisition bridge loan closing November 6, 2024. The loan included $12,000,000 of initial funding at closing, with the remaining $2,050,000 structured as a holdback available to fund tenant improvement allowances and leasing commissions as the sponsor executed leases in the building. The loan also included a $625,000 interest reserve to support the property's carrying costs during the initial leasing period.

THE BUSINESS PLAN

Acquire a Vacant, Newly Delivered Building at a Favorable Basis, Execute a Strategic Partial Lease to Anchor Demand, and Refinance into Permanent Financing

The sponsor's business plan was to acquire the property at a basis significantly below replacement cost, engage an institutional leasing broker to market the building, and target a single large tenant capable of occupying the full 290,160 square feet. The sponsor also maintained the flexibility to subdivide the building for up to three tenants if a full-building user did not materialize within the loan term. Rather than waiting for a single-user solution, the sponsor pursued a strategic partial lease early in the holding period: by securing an anchor tenant, the sponsor could improve the property's marketability to a larger user and create momentum in a market where new supply had increased competition for tenants.

Less than one year after closing, the sponsor executed a lease for approximately 65,000 square feet at rental rates above RRA's original pro forma assumptions. The execution of this above-market lease validated the property's position in the submarket and improved its attractiveness to prospective full-building users. Shortly after executing the lease, the sponsor was able to refinance the property with a local relationship lender and paid off the RRA loan in full on December 30, 2025, approximately 14 months after origination. The $2,050,000 TI and leasing cost holdback was not drawn, reflecting the speed and structure of the executed lease.

THE SUBMARKET

Madison, Alabama: A Rapidly Growing Industrial Market Anchored by Defense, Research, and Large-Scale Manufacturing in the Huntsville Metropolitan Area

The property is located in the Greenbrier corridor of Madison, Alabama, an unincorporated community within the Huntsville metropolitan area. Madison is one of the fastest-growing cities in Alabama, growing 32.6% from 2010 to 2020 to reach a population of 56,933, and the broader Huntsville metro area has emerged as one of the most economically active markets in the Southeast. The region's growth is anchored by two major institutional complexes: Cummings Research Park, the second-largest research park in the United States, home to a mix of Fortune 500 companies and aerospace and defense tenants; and Redstone Arsenal, a U.S. Army base supporting a daily workforce of 36,000 to 40,000 people. These demand anchors have made Huntsville a durable market for industrial development, particularly in the logistics and advanced manufacturing segments.

The property is located within approximately one mile of the Mazda Toyota Manufacturing joint venture plant, one of the largest automotive manufacturing facilities in the Southeast, with a two-mile radius that also includes an Amazon distribution center. The building's position along Greenbrier Parkway provides access to Interstate 565 within two miles and Interstate 65 within seven miles, with Huntsville International Airport reachable within eight miles. Within the Outlying Limestone County industrial submarket, the market carries approximately 16 million square feet of total industrial inventory. Vacancy increased at the time of origination due to new supply, but absorption remained positive, reflecting sustained underlying demand in a market where major employers continued to attract industrial users to the corridor.

THE SPONSOR

A Louisville-Based Family Office with a $400MM+ Industrial Portfolio and an Established Presence in the Huntsville Market

The sponsor is a Louisville, Kentucky-based family office focused on real estate, with nearly $1 billion in total net worth and a portfolio encompassing over one million square feet of industrial space valued at over $400 million. The firm's investment focus includes high-street retail, multifamily, and Southeast industrial properties, and the Greenbrier Parkway acquisition represented a continuation of the sponsor's active deployment in the Southeast industrial market. At the time of acquisition, the sponsor already owned an industrial asset in the Huntsville market, providing direct familiarity with the submarket's tenant base, leasing dynamics, and institutional lender relationships.

The sponsor engaged Graham & Co., an established commercial brokerage active in the Alabama industrial market, to lead the leasing effort at 10121 Greenbrier Parkway. The 65,000 square foot lease executed within the first year of ownership at above-pro-forma rents was a direct reflection of the sponsor's leasing strategy, broker relationships, and knowledge of how to position a large-format industrial asset in this corridor. The speed of lease execution, combined with the sponsor's access to local relationship lenders for permanent financing, resulted in a full payoff of the RRA loan approximately 14 months after closing.