Brennan: Capitalizing on improving

(Save the date: RealShare Industrial 2012 comes to The Bankers Club, Miami, December 5 – 6.)

CHICAGO-Who said industrial isn’t sexy? When you’re talking about a $178-million buy of a national portfolio, it is. Chicago-based Brennan Investment Group and London’s Gatehouse Bank plc, have jointly purchased 19 assets in 13 states in all regions of the country.

Gatehouse, capitalized largely by Kuwaiti institutional investors, was the lead equity player in the JV. The Royal Bank of Scotland ponied up the debt, which came to 65% of the total purchase price. AIC Ventures was the seller, represented by Bret Hardy and Greg Cizik of Colliers International. Arch Street Capital Advisors spoke for Gatehouse.

According to Brennan chairman and managing principal Michael Brennan, who spoke exclusively with, the major assets—70% of the portfolio—are located in Los Angeles, Chicago, Philadelphia, New Jersey, Atlanta and Phoenix. The rest of the pack are to be found in Dallas, Winston-Salem and Minneapolis. The buildings are 100% leased to 16 tenants in a mix of industries.

This is actually the second major purchase Brennan and Gatehouse have mounted together. As reported in July, the entities teamed up on a $155-million acquisition of 20 properties across 12 states. These were also sold by AIC.

“We’re pleased to complete our second acquisition with Gatehouse this year,” Brennan commented in a company statement. “US industrial markets continue to demonstrate improving fundamentals, with nearly every major market posting positive absorption and rising occupancies. The acquisition of 19 critical-use facilities, located in major markets, provides our investment a high degree of predictability both now and in the future.”