Ben Applebaum, vice president of acquisitions for Welsh, says he cannot divulge the full purchase price for the buildings. However, he says the office buildings were added to the Midwest Real Estate Fund that stands now at $35 million, and the industrial building was for the Welsh US Real Estate Fund, a perpetual fund that to date has raised $10 million.
He tells GlobeSt.com that the second office building is a multi-tenant facility that is "north of 95% occupied," with an average office lease rate of $13 to $13.50 per sf. Occupancy at the industrial building is "in the high 70s," but he says he cannot release the average lease rate. "It's a unique building, with direct access to the steelworks plant on a private road, with rail service as well," Applebaum says.
Instead of pulling out of the Midwest, he says Welsh's platform is to acquire properties in the major Midwest markets. "We want to use this method for growth, and we're also looking heavily in the Southeast as well. We're a cash-yield buyer, able to purchase assets that provide more attractive yields for a cash-flow standpoint, rather than going to find real estate on the coasts that have given up cap rates," he says.
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