"It's been the most active month that we've had in terms oftransactions," says Lewis D. Friedland, managing partner ofDallas-based Cobalt Capital Partners LP. "We anticipate the rest ofthe year will be fairly active in this deal size." The REIT's sweetspot is 100,000 sf and an average payout of $8.5 million perdeed.

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Friedland says the deals constituted marketed and off-markettransactions with sellers that included Boston-based TA AssociatesInc., Wilton, CT-based CommonFund Realty and Bandera Ventures Ltd.of Dallas in addition to one large public industrial REIT and oneinternational company. GlobeSt.com did come across twosales this month: 1135 W. Trinity Mills Rd., 2425 Carter Dr. and1011 Royal Lane. He tells GlobeSt.com that the buying round alsobagged the 278,300-sf Trane distribution center in St. Louis;199,300-sf GE Northwest Atlanta center in Atlanta; 96,000-sf Aspendistribution center in Minneapolis; and a 78,787-sf building at1550 Evans St. in Denver.

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[IMGCAP(2)]"We bought these buildings on very attractive yieldsand cost per sf," Friedland says, adding upside lies in rentincreases down the road as leases roll in the nine buildings.In-place rents range from $3 per sf to $6 per sf for a 30-plustenant roster, which is predicted to average 15% to 20% roll peryear.

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"Although the overall economy is slowing, we're still seeingrental rate increases," Friedland says. Leases average 30,000 sf,with three to seven years left on their terms.

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The heavy lifting for leasing and management in respectivemarkets has been handed to local brokers, according to Friedland.Cobalt's point men for the deals were Tom Fishman, managingdirector of acquisitions, and David Broome, associate director.

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Friedland says the six transactions closed with cash, but debtis now being arranged. "Even in today's market, we're able to getvery attractive rates due to the high number of tenants anddiversification of the tenant base," he explains.Since late August2007, Cobalt Industrial REIT II has bought about 10-million sf withits $410million of equity. Friedland says about 60% has beeninvested. By year's end, he expects 75% to 80% of the till will bespent.

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