ELWOOD, IL-The Burlington Northern Santa Fe Railway Co. won’t be writing any more rent checks to Oak Brook, IL-based CenterPoint Properties Trust for the 600 acres of land leased here at the CenterPoint Intermodal Center. Private investors have bought the land for $91.1 million, with the deal staggered over the next five quarters.

The buyers assume the ground lease, which CenterPoint Properties Trust securitized in June. The 6.641% interest on the bonds sold by the REIT matches the railroad company’s $6.5-million-a-year payments on the ground lease. In addition to eliminating debt from CenterPoint’s balance sheet, the staggered sale allows the largest industrial property owner in the market to focus on reinvesting $18 million a quarter into 2004, rather than trying to put the entire $91.1 million to use now.

“The structure of this sale should allow CenterPoint to maximize reinvestment returns, key to realizing the full benefit of the $91.1 million lease securitization and sale,” says co-chairman and chief executive officer John S. Gates in a statement.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt. NET LEASE Fall 2023Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.