"This was a relationship deal from all facets of the acquisition and I believe it exemplifies the type of transactions that will be completed during the current market turmoil," says Jeff Josephs, Biynah's managing principal. "Working with a great partner, we have acquired a highly-functional industrial portfolio at an excellent basis and with attractive debt terms in a very strong industrial submarket."

The portfolio contains seven various buildings all situated within the Park 100 submarket. The properties are both mid-size flex buildings and bulk warehouse space.

As part of the deal, the JV wanted to lessen the possibility of near-term tenant rollover. As a result the seller managed to negotiate lease renewals with four tenants, which occupy 22% of the portfolio. "Eliminating that roll-over risk is a great benefit in today's challenging operating environment," says Tom Burton, ABR's CEO.

With those leases secured, an additional 25% of the portfolio's tenants have lease terms that last more than seven more years. The portfolio's vacancy rate was not released, but the market's average is 6.5%.

"North by Northwest's excellent location, modest leverage, and in-place cash flow make it a great addition to ABR Chesapeake Fund III's portfolio," says John Prugh, ABR's president and CEO. The Baltimore-based company has made five investments in the Indianapolis market through its ABR Chesapeake Fund III.

Biynah is a Minneapolis-based private equity firm, which focuses on the industrial market.