Transwestern Investment Sells More Than 3 Million SF Logistics Portfolio
The portfolio includes four buildings in Chicago, two buildings in Cincinnati, 12 buildings in Columbus, two buildings in Indianapolis, and one building in Louisville.
DALLAS—Transwestern Investment Group has sold a portfolio of more than 20 logistics industrial properties in four midwestern states.
The Dallas-based firm reports that the 3.5-million-square-foot portfolio encompassing 21 logistics facilities in Illinois, Ohio, Indiana and Kentucky were acquired by an unnamed foreign-based foreign institutional buyer. No financial terms of the transaction were disclosed.
The properties were sold by Transwestern Investment Group on behalf of its discretionary investment fund, TSP Value and Income Fund I. James Carpenter, Adam Tyler and Mike Tenteris of Cushman & Wakefield provided disposition services for Transwestern Investment Group.
The portfolio includes four buildings in Chicago, two buildings in Cincinnati, 12 buildings in Columbus, two buildings in Indianapolis, and one building in Louisville. TIG reports that prior to the sale it added significant value to the portfolio by completing capital improvements, increasing the weighted average lease term, and raising the net operating income by nearly 20% during its ownership.
The logistics properties were 91% occupied at the time of the sale. The portfolio ranged from small bay to large distribution facilities and included single-tenant and multi-tenant buildings.
The national industrial market continues to outperform in response to unprecedented demand, Transwestern notes. While nearly 1 billion square feet of new inventory has been delivered in the past three years, the year-end vacancy rate for this sector was 4.7%, less than half of the post-recession high of 9.5% in 2010, according to Transwestern’s research on the national industrial market. Of the 47 markets Transwestern tracks, more than 90% experienced year-over-year rent growth, and all but four markets posted positive net absorption for the year.
Transwestern Investment has been very active thus far in 2019. Earlier this month, Transwestern Investment Group sold a 400,127-square-foot, Class A office building at 300 Kimball Drive in Parsippany, NJ on behalf of a large national insurance company. The sale followed an expansive capital improvement program which transformed the asset from a single-tenant property into a state-of-the-art, multi-tenant facility.
In February, Transwestern Investment Group announced it had acquired a 1.2 million-square-foot industrial property in north Fort Worth, TX. The firm acquired the property from DHL Supply Chain on behalf of one of its separately managed accounts.
Also in February, Transwestern Investment Group sold the Southpark Commerce Center V in Austin, TX to Hillwood. Located within the Southeast industrial submarket of Austin, Southpark Commerce Center V is a recently completed, three-building project totaling 350,171 square feet.