MADISON HEIGHTS, MI-First Industrial Realty Trust has sold a 12-property industrial portfolio here, in Taylor, MI and in neighboring Troy, MI to a private TIC and investment group in California for $18 million. The properties include eight single-tenant assets leased mainly to European automotive engineering firms, and four single-tenant assets leased to companies such as Muller Weingarten and Verizon, and total 380,000 sf.
John Godwin, senior associate with Marcus & Millichap, tells GlobeSt.com that since many of the tenants are automotive suppliers, it was a tenuous time to sell the properties during United Auto Workers negotiations with the Big Three automakers. The lease rates range from $6-$10, depending on whether the properties were in Madison Heights or the more popular Troy, he says. The Taylor location is a 166,594-sf distribution warehouse, and properties in the area lease for $2.75 per sf to $3.50 per sf, Godwin says.
He says the single-tenant properties are 100% leased, while the multitenant facilities are about 80% occupied. "There's a fair amount of activity for industrial in Southeast Michigan," Godwin says. "There's a tremendous amount of interest from out-of-state buyers, looking to come into the market. They recognize the opportunity. The local buyers are sitting on the sidelines right now."
The Madison Heights properties include 800 E. Whitcomb Ave. (15,700 sf), 900 Tech Row (18,280 sf), 599 E. Mandoline Ave. 38100 Research Park Dr. (32,000 sf), 32661 Edward Ave. (32,025 sf), 1000 Tech Row (33,260 sf), 1000 East Whitcomb Rd. (20,000 sf), 31701 Research Park Dr. (14,582 sf) and 31751 Research Park Dr. (17,569 sf). The Troy site is 2475 Elliott Dr., at 10,481 sf, and the Taylor property is 26986 Trolley Industrial Dr.
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