NS sells site of former Ohio classification yard to Xebec

9/30/2021
In 2009, NS closed Buckeye Yard, which initially was operated as a classification yard, but ultimately was used more in the 2000s to store rail cars. Norfolk Southern Railway

By Jeff Stagl, Managing Editor

Norfolk Southern Railway recently turned unused and unwanted property in Ohio into a revenue gain.  

In August, the Class I sold the land that previously housed its portion of Buckeye Yard in Columbus to Xebec, a Dallas-based industrial real estate firm.  

The transaction involved nearly 406 acres. In 2009, NS closed Buckeye Yard, which initially was operated as a classification yard, but ultimately was used more in the 2000s to store rail cars. The Class I and CSX acquired the property and associated facilities as part of the Conrail split. CSX continues to operate an intermodal terminal at the site. 

Xebec develops fulfillment, warehouse and distribution centers (for bulk logistics), light industrial buildings, and infill/last-mile properties located primarily in U.S. coastal and inland logistics markets. The company seeks real estate near major ports, rail terminals and intermodal infrastructure.  

Buckeye Yard NS will continue to provide service to the area that housed its former Buckeye Yard in Columbus, Ohio. Norfolk Southern Railway

Xebec plans to build eight Class A industrial facilities on the acquired land to help meet high demand for logistics space in the Columbus region. The first phase of the project — involving the construction of four of the buildings totaling 1.92 million square feet — is anticipated to start in second-quarter 2022. 

The redevelopment of the land into a new warehousing complex will enable the railroad to continue providing service to the property while ensuring the site remains a source of jobs, said NS Executive Vice President and Chief Marketing Officer Alan Shaw in emailed comments. 

In the Columbus market, infill sites the size of the NS property are uncommon because of a lack of available land, Xebec officials say. The company was interested in obtaining land in the region because of solid transportation access, and the area’s role as both a national rail and worldwide air logistics hub, said Randy Kendrick, the company’s president and chief executive officer. 

“The impact of the COVID-19 pandemic on retail distribution has further catalyzed an already strong growth story for industrial real estate as e-commerce occupiers continue to expand their existing footprint,” he said.