Stonemont breaks ground on first speculative industrial development in Metro Atlanta

The firm expands footprint with three new state-of-the-art buildings sitting on last remaining developable parcels in key suburban hub 

Stonemont Financial Group, a private real estate investment firm specializing in industrial development and net lease assets, announced that it has broken ground on a new three-building, 18-acre industrial park in Kennesaw, Georgia. Named Kennesaw 75, the Class A development is one of the last infill industrial sites available in the I-75 North submarket. Kennesaw 75 marks the third industrial venture for Stonemont in Metro Atlanta over the past 12 months, and its first speculative development as the firm looks to grow its footprint in its hometown market.

Construction is currently underway on three buildings totaling 200,000 square feet. Designed to accommodate a variety of users ranging from 15,000 to 84,000 square feet, the buildings will each feature ample parking space and docking for tenants. The development sits just 1.1 miles southwest of I-75 near the intersection of Jiles Road and Cherokee Street, providing convenient access to a key transportation corridor that is one of the nation’s busiest thoroughfares.

“This project reflects Stonemont’s commitment to source and capitalize on premium speculative development opportunities in areas with high barriers to entry,” said Zack Markwell, Managing Principal and CEO at Stonemont Financial Group. “This is a true infill last-mile location that cannot be replicated in the market, and that location advantage provides confidence that we’ll see significant leasing activity before the completion of construction. Atlanta is a key market for our team moving forward, and we will continue to actively pursue projects that address burgeoning market demand and generate meaningful value for our strategic partners.”

I-75 North is among the strongest performing industrial submarkets in metro Atlanta, located near one of the busiest rail corridors in the state and sitting miles from some of the most significant transportation routes in the region. The area's rapid population growth and close access to major ports in Savannah and Charleston are the main reasons why the submarket saw vacancies hit a record low of 4.2% this year, a sharp drop from the previous record of 6.6% in 1999 according to CoStar. 5.8 million square feet of industrial space is currently under construction across the submarket.

Stonemont has seen an active year with over 10 million square feet of industrial development completed or under construction nationally, including a 500,000-square-foot build-to-suit warehouse and manufacturing building in Bristol, Indiana and 1.1 million square feet of distribution centers and speculative development buildings in the Metro Dallas region. Last spring, Stonemont also announced a $1 billion joint venture with an affiliate of Cerberus Capital Management to acquire large-scale logistics properties around the U.S.

Kennesaw 75 is slated for substantial completion in Q1 of 2022. Kajima Building & Design Group is serving as the design builder on the project.