ROSEMONT, IL—A lot of investors in the industrial market have started looking for high-yield deals in secondary markets, but top properties in the Chicago region will always draw in a lot of buyers. Colliers International’s Jeff Devine and Steve Disse recently represented institutional investors advised by J.P. Morgan Asset Management in the sale of a six-building, 1.4 million-square-foot, class A industrial portfolio in metro Chicago to a comingled fund managed by CBRE Investors. The sale price was approximately $95 million.
“It’s fair to say that new, class A warehouses are very high on the list for institutional investors,” Devine tells GlobeSt.com, especially ones “in the top ports like Seattle, Los Angeles, New Jersey, and Chicago,” which is the nation’s leading inland port.
Blackstone Real Estate Income Trust, for example, recently signed an agreement to buy a 21.7-million-square-foot industrial portfolio from a Cabot Properties fund for approximately $1.8 billion. Roughly one-fifth of the space is in the Chicago area.
All of CBRE Investors’ new properties were institutionally maintained under former ownership and are located in master planned business parks with immediate access to the interstate highway system. The portfolio includes:
- 494 E. Lies Rd., an 89,380-square-foot facility in the Carol Point Business Center in Carol Stream, IL.
- 2520 Diehl Rd., a 130,000-square-foot facility in the White Oak Business Park in Aurora, IL.
- 2700 Ellis Rd., a 689,654-square-foot facility; 2101 Haven Rd., a 186,600-square-foot facility; 2201 Haven Rd., a 115,000-square-foot facility; and 2200 Haven Rd., 204,940-square-foot facility – all in the Cherry Hill Business Park in New Lenox, IL.
Collectively, the buildings were 100% leased to seven tenants at sale.
“This was a great opportunity for an investor to establish a substantial position in institutional quality Chicago industrial product,” adds Devine.