CHESTERFIELD TOWNSHIP, MI-Boston-based STAG Capital Partners has acquired a four-building industrial portfolio here for more than $11 million. The buildings, which total 478,803 sf, were purchased from Chesterfield Associates LP.
The buildings are in the RC Schmidt & Sons Industrial Complex, a collection of about a dozen industrial buildings, says Michael Chase, VP with STAG. The four buildings are 100% leased to tenants Emhart Teknologies, a subsidiary of Black and Decker Corp. (68,300 sf), Hi-Tech Coatings Inc. (49,849 sf) and automotive suppliers Anchor Bay Packaging (311,042 sf) and Hersh Co. (50,371 sf).
Chase tells GlobeSt.com that the older buildings are a somewhat low-cost alternative to the area. "They're shorter-term leases, but they have a long history with the building," he says. "This buy fits our strategy of one-to-two tenant industrial facilities. The yield was attractive, and we feel comfortable about the renewal probability."
Jack Williams with Colliers International represented the seller. He says the partnership needed to split up after 30 years. STAG will likely need to spend some capital for improvements on the properties, Williams says. The lease rates at the buildings are at about $4 per sf.
"It was a good buy, most buildings in this market are selling in the mid-30s," Williams tells GlobeSt.com. "Chesterfield is one of the top markets in Macomb County, right off of I-94. There are two different markets in Macomb now, there's the south area, that includes Warren, with struggling older properties, and north Macomb that includes Chesterfield."
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