CHICAGO—Oak Brook-based CenterPoint Properties just sold a pair of manufacturing and distribution buildings in the suburban Chicago area with a total of 674,209-square-feet for $39,650,000. The purchase closed during the last week of June. Known as the Federal Signal Industrial Property Portfolio, the 457,198-square-foot building at 2645 Federal Signal Dr. in University Park and a 217,011-square-foot building at 1300 Bartlett Ave. in Elgin, along with more than 56 acres of land, operate under triple-net-leases guaranteed by the Federal Signal Corporation.

“I think there is a pretty strong national demand for this type of property,” says Jonathan M. Wolfe, a principal with STREAM Capital Partners, LLC, a Chicago-based firm that advises clients on net-lease and sale leaseback deals. STREAM Capital was founded in 2012 and represented CenterPoint in negotiations with the undisclosed buyer. CenterPoint bought the portfolio in 2008.

Even though both buildings were built before 1973, a financially-successful company like Federal Signal that operates under a long-term net-lease will attract investors, Wolfe says. “Investors want to see that a tenant is committed to the long-term occupancy of their buildings and is willing to use their capital to maintain them and Federal Signal has been in both buildings for a long period of time and been a great tenant. Through the long-term lease they are demonstrating that these buildings are very functional for their operations.” Ten years remains on the fifteen-year lease, which also includes annual rent increases of 2%.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.