194,977-SF Specialty Building Nets $15M

The New York City-based KTR acquired the 31-acre property on behalf of the Keystone Industrial Fund. Under the purchase agreement, Atlas Cold Storage will remain for a short time in the building at 6101 W. Washington St. according to Don Chase, principal with KTR Capital Partners. "This sets up well for someone who might use it as a third-party logistic facility like Atlas, or a one-stop shop like a grocer or someone buying product for a grocery store chain," he adds.

Chase tells GlobeSt.com that the deal, listed at a $15-million ask, was appealing to KTR for two reasons, one of which is the extra acreage. "The 18 acres of land next to the building can be developed as an expansion of an existing facility or something separate," he says. "We're evaluating whether we'd build something there or entertain a build-to-suit, but we don't have a specific strategy in mind yet."

The other reason why the acquisition is proving attractive to KTR's portfolio is because the replacement cost value. "The cost of one of these facilities to build from the ground-up is expensive, over $100 per sf," Chase says. "When you come across something like this that's available, it's worth the investment."

The building was developed in two phases, with the 110,457-sf freezer space completed in 1978 and the adjacent 84,520-sf refrigerated section going up in 1996. Chase says potential users have shown great interest in the facility, but no firm commitments are in hand as yet.