Summit Industrial Income REIT
Summit Industrial Income REIT will acquire a 226,000 square foot industrial building combined with a 150,000 square foot industrial expansion project in Pointe Claire, Quebec, on the west side of Montreal. Summit will pay $95.6 million for the entire property, of which, $39.0 million will be paid once the expansion project is completed. The property is directly on the Trans-Canada Highway, provides access to transit, and provides efficient access to the Montreal-Trudeau International Airport. The existing 226,000 square foot building has 22-foot clear ceiling heights, numerous access doors as well as trailer and employee parking.
The 150,000 square foot Class A expansion project, with an estimated completion date of mid-2022, will have 32-foot clear ceiling heights, 22 truck level doors and two large drive-in doors. It is intended to be certified as a net zero carbon building on completion. The property is being acquired under a long-term sale-leaseback structure with the current owner occupying 100 percent of the existing building. Negotiations are at an advanced stage to lease the expansion space to one tenant under a long-term lease.
Pittsburgh International Airport
Cargo volume at Pittsburgh International Airport has grown so rapidly in recent years that officials recently announced the construction of an approximately 140,000-square-foot building on the airfield in order to keep up. The airport authority has approved an agreement with developer Aeroterm to lease up to 8.77 acres of land for 30 years to build the new facility at no cost to the authority. The largest cargo building in the airport’s history, it is expected to be operational by summer 2023, officials said.
Aeroterm will pay US$244,000 in rent in the first year of the deal, in addition to five percent of annual revenue. The lease has two 10-year renewal options. The new building does not affect the airport’s plan to build what is known as Cargo 4, a 77,000-square-foot cargo-processing facility and adjacent parking lot that has received nearly $20 million in federal and state grants and is expected to be operational by 2024.
Cargo volume was up nearly 30 percent in 2021 and totaled nearly 250 million pounds, making it the busiest cargo year at PIT since 2004, when it was still a hub for US Airways. PIT’s cargo operations include domestic shippers such as FedEx and UPS as well as international firms such as Qatar Airways, Cathay Pacific and more. Last spring, PIT became part of the Amazon Air network, and the airline now operates two daily flights at the airport.