DETROIT—This metro area may not have the best reputation, but people knowledgeable about its real estate markets say many of its sectors and regions have great opportunities for investors. For example, Brennan Investment Group, LLC, a private real estate investment firm based in suburban Chicago that acquires industrial properties in what it feels are rising markets, has just acquired a class A, multi-tenant warehouse and distribution facility totaling about 160,035 square feet in the Trolley Industrial Park in Taylor, MI, near Detroit Metropolitan Airport.
"This submarket is the largest in Detroit and, due to its proximity to the airport, has historically outperformed its surrounding submarkets,” says Ryan O'Halloran, the company's vice president of acquisitions. "The Detroit market as a whole has experienced a remarkable recovery in the last two years as vacancy rates have dropped over 450 bps to 5.5% as of Q1 2015.”
Company officials would not disclose how much they paid for 22701 Trolley Industrial Dr., but a spokesperson tells GlobeSt.com that tenants Jinny Beauty Supply, Avanti Press, TCi Tire Centers, and Lewis-Goetz occupy 100% of the space. And this is not the first big purchase that Brennan has made in the area. Currently, including the building on Trolley, the company owns 1,281,771 square feet.
“This acquisition is illustrative of our strategy to acquire functional, well-located assets in a rebounding market,” says Scott McKibben, co-founder and managing principal for Brennan. “Demand has returned due to the resurgence of the automotive industry, with positive space absorption for the last 16 quarters."
Other Midwest markets that fit Brennan's acquisition strategy are Minneapolis, Indianapolis, Cincinnati, and Milwaukee, the spokesperson says.
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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.
