Construction Begins on 936,000-SF Building

(Read more on the industrial market.)

SHEPHERDSVILLE, KY-Lauth, headquartered in Indianapolis, is constructing its second building as part of Salt River Business Park. The 936,000-sf Salt River Two will be a speculative industrial building.

Lauth plans to construct a total of up to 2.2 million sf of industrial space at the park, which is situated near the intersection of Interstate 65 and US Hwy. 480 and close to the Louisville International Airport and UPS Worldport. Salt River Two is expected to be completed in the second or third quarter 2008, says Tag Birge, first vice president at Lauth. The development cost was not available by press time.

The Lauth team expects two tenants to occupy the building. The asking rate is $3.65 per sf, net, Birge tells GlobeSt.com.

The 832,000-sf Salt River One was constructed in 2006. Zappos.com leases 624,000 sf of the building with the remaining 208,000 sf vacant, Birge says. Lauth sold the building to USAA Real Estate last January for nearly $38.8 million, sources say. Lauth acquired 128 acres for the business park in April 2005, according to a press release about the land acquisition.