Interest in OK Sparks 2M-SF Industrial Sale

Tim Strange, managing director for Sperry Van Ness in Oklahoma City, says the portfolios represent about half of Gardner Tannenbaum's industrial holdings. Strange, who is marketing the assets with Sperry Van Ness senior vice president John McDermott and associate Brett Price, says investor interest in Oklahoma and good market fundamentals have prompted the OKC-based Garner Tannenbaum to put the assets on the market. He tells GlobeSt.com that the assets are required to be sold as portfolios rather than one-offs due to securitized, low-interest, long-term debt on each portfolio and cross-collateralization.

Gardner Tannenbaum is seeking $61.7 million for a 13-building portfolio with 869,596 sf. The package has $38 million of assumable conduit financing at a 5.44% fixed-rate interest through February 2011, at which time it converts to a 30-year amortization.

The seller has hung a $73.3-million ask on an eight-building portfolio, totaling 1.08 million sf. It has $41.3 million in conduit financing, assumable at 5.46% on a 10-year fixed-rate basis and 30-year amortization.

Both portfolios, developed in 2001, are close to 100% occupancy. Strange says most leases are long term, and in cases where there is roll, the tenants aren't going anywhere anytime soon. "The tenants have made a heavy investment in a lot of those buildings," he explains, adding some buildings were build-to-suits. "To replicate the buildings would be expensive. While the leases aren't forever, the tenants will be."

Strange says the seller hasn't put a deadline on a call for offers. It's anticipated both portfolios will be sold by late summer. "We're marketing these to institutional owners, but also high net-worth individuals," Strange says. "We think this would be a great fit for someone that has $20 million or $30 million and wants to put it in a growing Sunbelt economy."