Griffin Capital Acquires 265,000 SF for $32M

BOLINGBROOK, IL-Griffin Capital, based in Los Angeles, has acquired two industrial buildings at 525 Crossroads Pkwy. and 750 S. Schmidt Rd. Griffin Capital acquired the buildings for a total of $32.3 million from Chicago-based First Industrial Realty Trust. The properties were acquired on behalf of 29 tenant-in-common investors who were completing a 1031 tax deferred exchange. The cap rate for the sale was 7.4%, says Don Pescara, managing director of Griffin Capital.

The majority of the investors were represented by Sigma/1031 Exchange Options, Pacific West, OMNI Brokerage and Direct Capital. First Industrial LP provided $24.2 million for 10 years for the acquisition.

The 187,000-sf building at 750 S. Schmidt Rd. was constructed in 1997 and the 78,870-sf building at 525 Crossroads Pkwy. was built in 2001, he says. The buildings have frontage and high visibility on Interstate 55, Pescara says. The two facilities are 100% leased to Quantum Foods, which has its headquarters at 750 S. Schmidt Rd. Quantum Foods signed a 20-year lease in April 2006 for the buildings, which both have a significant amount of cooler and freezer space, Pescara says. The lease rate was not disclosed. Quantum Foods has more than 700 employees with their largest clients being IHOP, Denny's, Quizno's Subs and the US military, he tells GlobeSt.com. The company also plans to sell prepared food at grocery stores such as Wal-Mart and Albertson's.

First Industrial acquired the two buildings in July 2006 for a total of $26.9 million from Quantum Equity Properties LLC, sources say. First Industrial had also acquired Bolingbrook Point II, 550 W. North Frontage Rd., from Quantum Equity Properties at the same time for $27.3 million. The 269,591-sf Bolingbrook Point II is also fully leased by Quantum Foods as a global logistics building. First Industrial Realty Trust sold Bolingbrook Point II in September to TA Associates for $35.8 million, sources say.