GE Real Estate, Champion Form Industrial JV

Seven of the 12 properties in the 2.6-million-sf portfolio are located in the Stoneridge Business Park in Dallas. Some of the major tenants at the 1.1-million-sf complex, located off of Route 20, include the Dallas Independent School District, Aero Fabricators and Corporate Express.

The GE-Champion venture also acquired 230 Lies Rd. (350,000-sf industrial building) in Carol Stream, IL, a suburb of Chicago and One Beeman Rd., a 312,000-sf property in the Boston suburb of Northborough, MA. In addition, the venture purchased three buildings in Memphis: 3960 Crowfarn Rd.; 4221 Pilot Dr. and 2525 Horizon Rd.

Darren Kowalske, senior vice president, strategic ventures for GE Real Estate, says no funding cap has been set on the joint venture. He adds that the partnership is currently looking at "quality industrial portfolios across the United States." However, he would not comment on what if any properties are in the joint venture's purchase pipeline.

"The goal is to build a strong, diversified, industrial real estate equity portfolio. This venture combines GE Real Estate's capital strength and industry expertise with Champion's track record of acquiring, developing and managing industrial properties," Kowalske says. "Together, we have the ability to acquire industrial properties with high growth potential and commit the resources necessary to maximize their performance and value."

Champion managing partner Jeff Swope adds, "This first portfolio was an appealing investment for our venture due to its size, quality and geographic locations."

According to Champion senior partner Steve Modory, Champion and GE Real Estate capitalized their initial portfolio purchase with equity from the venture and first mortgage financing from Cigna. He notes that the parties had originally intended to close the deal prior to year's end 2003, but the complexity of the transaction caused several weeks in delays.