CHICAGO—The Chicago industrial market has seen a lot of activity lately, and has also succeeded in attracting the interest of coastal investors. Officials from NorthMarq Capital’s New Jersey regional office, for example, say they closed on $10.2 million in financing for the acquisition of 1500 Harris Rd. at the Liberty Point Corporate Center in north suburban Libertyville.
The 217,620-square-foot class A single tenant warehouse and distribution center was purchased by the New Jersey-based Silverman Group in late January 2013. Built in 2008, the building has 30′ clear height, while many distribution facilities in the submarket only have 22 or lower. Culligan International Company, a provider of water treatment and softener solutions, signed a ten-year lease for the facility in 2012.
Greg Nalbandian, senior vice president and managing director of the New Jersey office, worked with the borrower and structured the loan with a 12-year term and 25-year amortization through its relationship with correspondent life company, Genworth Financial.
“Given the single tenant, non-credit nature of the transaction combined with the maximum LTV request, most life companies either passed or would only consider a much more conservative leverage with a quicker amortization,” says Nalbandian. “Genworth took the time to travel to Chicago to tour the asset and fully understand the relevance of this building to the tenant’s overall business operation. In doing so, the sponsor’s financial objectives were met and Genworth was able to place an attractive loan in its portfolio with a target borrower.”