The third quarter was met with great activity and the launch of our first LLC of the year, ABC Panel, LLC. We cannot thank you, our partners, enough for continually amazing us with your support of every opportunity we put in front of you. The $44.68 M LLC was oversubscribed by 95% and while we wish that all of you could get the percentage of ownership that you request, we are humbled by the growing number of investors placing their faith in Agracel.
It is no secret that the last year has been challenging in terms of market conditions however, we feel we have dealt ourselves a very good hand. For those who have been with us a length of time you know we strategically sold several properties over the last year and have written to you about our approach to “strike while the iron was hot.” We do believe we timed the market right with those sales as with interest rates and CAP rates on the rise, many brokers are advising clients to pause on listing any properties for the time being.
Interestingly enough, we are still seeing a demand for industrial space nationwide. What we are seeing is also validated by ProLogis, the World’s largest industrial REIT. In the outlook from their third quarter 2022 results, they stated that they continue to see a scarcity of available space and a fair amount of demand. It is the scarcity in available space over the past two years that has prompted our community partnerships and the development of several speculative buildings. Our hope is that this demand carries over into the leasing and build-out of our spec buildings which we will in return roll into upcoming LLC’s once stabilized.
We are going to leave you moving into the last quarter of the year with all good news. We do believe construction pricing has plateaued and though interest rates are still rising, we also feel confident that those will soon steady out as well. Team Agracel is rolling into 2023 full steam ahead. We are in discussions with a number of our tenants on expansions, have a large RFP out for a 400,000 + sf build-to-suit, and have several great opportunities that we are vetting.
As always, should you have any questions regarding your investments, please reach out to us.
President & COO