Arcade Beauty site on Amnicola Highway
photo by CoStar Photo
Southeast real estate development group Urban Story Ventures has acquired the Arcade Beauty’s manufacturing site at 3800 Amnicola Highway. The off-market purchase was completed in the final days of 2023, after months of negotiations and preparing arrangements.
The seller Arcade Beauty, based in New York, announced plans last summer to consolidate its Chattanooga operations with its other production sites in New Jersey and most recently announced in December it would be relocating its slurry and laboratory operations to 7026 Discovery Dr. in Chattanooga.
Officials said, "The Arcade Beauty property is a fitting addition to Urban Story Venture’s portfolio, which already includes north of 1 million square feet of industrial space located throughout Chattanooga. The commercial real estate developer sees the new addition as a prime economic development opportunity for Chattanooga.
"Urban Story Ventures’ president and general partner Jimmy White aims to reposition the site as an ideal choice for manufacturing or other industrial tenants looking to relocate or expand. By revitalizing and modernizing the property, Urban Story Ventures plans to cater to industrial tenants seeking flexible space in a convenient and strategic location. Some of the industries viewed as potential fits include logistics, pharmaceuticals, food and beverage, and e-commerce."
Mr. White said, “This is the perfect example of the value-add projects we take on, where we improve upon the strengths and reimagine the rest for the highest and best use. It’s an amazing facility with solid existing features, and we have the rare opportunity to develop additional space in one of the strongest industrial corridors in a market with an extremely low vacancy rate of about one percent.”
He said the site has two pristine, move-in ready buildings totaling 169,000 square feet and includes 9.8 acres of undeveloped land that is already zoned for manufacturing and is conveniently located by a traffic light. The main building is 130,000 square feet and features climate-controlled areas throughout with fire suppression. The second building has about 40,000 square feet of office and industrial flex space. The property has ample parking and can accommodate one or multiple tenants.
Urban Story Ventures has owned, invested in, and managed industrial space in the market since 2014, when Mr. White purchased the Aerisyn building, which is now part of the industrial side of the Bend redevelopment on the downtown riverfront. Some of the industrial employers Urban Story Ventures has recruited include Novonix, Lincoln Electric, HEF USA, and Micronics.
Officials said the developer’s "extensive local experience and vision for a strong industrial market over the next decade were critical factors for the seller Arcade Beauty, which seriously considered a number of attractive offers."
“Jimmy and his team seemed to be the right fit. They were local, had strong industrial experience, and it was refreshing to see the new vision and energy for our site,” said JorgeGarcia, Executive Vice President and Chief Financial Officer for Arcade Beauty, a 121-year-old manufacturer that operated in the Chattanooga industrial corridor on Amnicola Highway from 2010 to 2023.
Mr. White said he "sees an exciting future for Arcade Beauty’s former site. Depending on the needs of the new tenant or tenants who move in, we could end up supporting hundreds of new jobs in the market. I’ve always believed in industrial and am excited to get to work with recruiting one of Chattanooga’s next big employers.”
Urban Story Ventures has already kicked off the planning process for what is next, but will serve as landlord and property manager for the Arcade Beauty team during the company’s transition over the coming months.