FRIDLEY, MINN. — Resolution Medical has signed a 35,781-square-foot industrial lease at Northern Stacks in Fridley. The Fridley-based medical device engineering and manufacturing firm will occupy the space at the 133,200-square-foot Stacks III, which is now fully leased. Jack Tornquist of CBRE represented the tenant in the lease transaction. Eric Batiza and John Simek of Colliers International represented ownership, a joint venture between Hyde Development and M.A. Mortenson Co. Upon completion, Northern Stacks will encompass a total of seven buildings. To date, five buildings have been constructed and four are fully leased.
DENVER — TH Real Estate has purchased a three-property industrial portfolio in Denver for $50 million. The transaction contains a total of 485,984 square feet. The assets include two infill properties at 6400 Broadway and Bryant Street Quad in central Denver, as well as a large-scale, high-bay industrial property at 16600 Table Mountain in west metro Denver. The properties are fully leased. TH Real Estate is an affiliate of Nuveen, the investment arm of TIAA. NKF’s John Jugl Jr., Paul Donahue and Bret Hardy represented the seller, an institutional owner, in this transaction.
NORTH SIOUX CITY, S.D. — Keating Resources has purchased the Gateway Computer campus in North Sioux City for $5.7 million. The 750,000-square-foot industrial facility is the largest building in the state of South Dakota, according to Keating. The building was constructed for Gateway in six phases from 1989 to 1997 for an estimated cost of over $70 million. The building, which is 61 percent occupied, will be repainted in the summer of 2018 with a cow pattern paying homage to Gateway’s brand. The building will be rebranded Gateway Business Center, and located within the Gateway Business Park, which was developed by Berkshire Hathaway and is owned by MidAmerican Energy. Chris Bogenrief of NAI United, Jere Hench of Colliers International and Robert Litz of Farmers National Co. were the brokers for the transaction.
The resiliency of Houston’s industrial real estate market is truly astounding. Outsiders have always considered Houston to be an “oil town” whose economic success is tied to the geopolitical intricacies of the international energy markets. Yet three years into the oil and gas downturn, Houston has proven that it has a truly diversified economic base. The city’s industrial real estate market has consequently enjoyed a disproportionate benefit of that concerted effort to establish a truly balanced economy. From 2009 to 2014, while the national economy sputtered along due to anti-business policies of the Obama administration, Houston enjoyed a countercyclical economic boon as all sectors of the oil and gas industry added jobs, increased investment and drove demand for oil service-related real estate. Manufacturers and distributors made significant real estate commitments to property and equipment as they worked to meet the demand for materials and services related to the growth in domestic shale exploration and production. When the music stopped in November 2014, outsiders and pundits threw their hands in the air, called it the end of Houston’s growth story and declared that it would be the 1980s all over again. Houston real estate veterans, however, trusted the diversified economy and …
Over the last five years, Kansas City has seen a flurry of activity in the industrial sector. Since 2012, we have seen approximately 22.7 million square feet of new Class A industrial space hit the market, with speculative development and build-to-suits. Considering that Kansas City had only about 14 million square feet of Class A industrial space prior to 2012, these additions have had a huge impact on our marketplace. Prior to big box speculative development in Kansas City, it was hard to land large users due to lack of available product. These users did not have the time to wait for build-to-suit projects to be completed, so if product wasn’t readily available, they would move on to a different market. As a result, developers began to introduce speculative buildings, meeting this demand for new Class A product. Kansas City has thus emerged as a major player competing for larger users and their requirements. This year alone we have seen record absorption numbers and are not showing any major signs of slowing down anytime soon. The two major drivers that are taking this space are e-commerce and logistics users. The new demand for larger spaces has increased the average size …
WEST HIALEAH, FLA. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the $32.5 million sale of West Hialeah Industrial Portfolio, a 376,016-square-foot industrial warehouse portfolio in West Hialeah, located roughly 11 miles northwest of Miami. The portfolio comprises 41 freestanding, multi-tenant buildings arranged in two separate clusters: one west of the Red Road corridor and north of the Hialeah Expressway and the other west of West 16th Avenue and north of Okeechobee Road. The buildings range in size from approximately 4,000 square feet to 28,000 square feet. Douglas Mandel and Benjamin Silver of IPA arranged the transaction on behalf of the seller, The Realty Associates Fund VII, an affiliate of TA Realty. The team also procured the buyer, Cofe Cix West Hialeah LLC. According to IPA, 95 percent of the portfolio’s leases have triple-net structures with annual rent increases that average roughly 4.5 percent.
In Southern Maine, we have an inventory problem. An inventory shortage, that is. During the recovery, there has been a steady flight to quality in all sectors including office, retail and, most strikingly, the industrial market. For the seventh consecutive year, the Greater Portland industrial market vacancy rate has dropped. We are now hovering close to a 2 percent total vacancy, which is grossly inhibiting end-users and growth. Throughout 2017, we worked with buyers and tenants that struggle to find suitable relocation and growth opportunities. Multiple offers and off-market sales have become commonplace, which frustrates end-users. We are coaching our clients to remain patient, flexible and communicative in this fluid and competitive market. Accordingly, the limited inventory drastically increased both lease rates and sales pricing for industrial style space. Sale price trends, in particular, deserve a closer look. In 2011, at the tail end of the recession, Class A and B industrial buildings were selling in the $40-per-square-foot range. Sales were almost exclusively going to owner-user businesses who were bullish enough to bet the economy would turn. Today, those businesses are competing with a smaller inventory pool, and against investors looking to diversify their portfolios. Quality industrial buildings are now …
DUPONT, WASH. — CRG has acquired DuPont Corporate Center, a 1.6 million-square-foot regional logistics hub formerly occupied by Intel in DuPont, for an undisclosed sum. The campus is located at 2800 Center Drive. DuPont Corporate Center includes a 340,000-square-foot facility that will undergo extensive capital improvements. Phase I of the development is designed to include a 750,200-square-foot distribution facility. Construction is expected to begin this summer. Phase II will include a 494,900-square-foot distribution facility. The center is situated near the Port of Tacoma, between Seattle and Portland, Ore. CBRE represented the seller in this transaction and will head up CRG’s leasing efforts for the existing building. Wilma Warshak of Washington Real Estate Advisors will market the facilities under development.
WILMER, TEXAS — Bob Moore Construction has completed Interpoint Distribution Center, a 350,000-square-foot industrial facility located at 3800 N. Interstate 45 in Wilmer, roughly 15 miles southwest of Dallas. The developer, Houston-based Skyhawk Partners, purchased the site along with J.A. Billip Co. Other members of the project team include leasing agent Colliers International and architect Alliance Architects. The facility is situated near the Union Pacific Intermodal and near facilities leased to FedEx, Procter & Gamble, Amazon and Shippers Warehouse.
VANCOUVER, BRITISH COLUMBIA — An affiliate of Blackstone (NYSE: BX) has entered into an agreement to acquire Vancouver-based Pure Industrial Real Estate Trust (PIRET) (TSX: AAR-UN) for $8.10 per trust unit — $3.8 billion — in an all-cash transaction. The transaction price represents a 21 percent premium to the closing price of PIRET units on the Toronto Stock Exchange on Jan. 8. Blackstone will complete the acquisition through its real estate investment arm, Blackstone Property Partners. “The trust has accomplished tremendous growth in the 10 years since the initial public offering in August 2007,” says Rick Turner, chairman of PIRET’s Board of Trustees. “Since inception, we have generated a total return in excess of 345 percent and we have built a platform that has made us a leader in the Canadian industrial REIT space.” The transaction is structured as a statutory plan of arrangement under the British Columbia Business Corporations Act. Completion of the transaction, which is expected to occur in the second quarter of this year, is subject to customary conditions. PIRET will continue to pay its normal monthly distributions through closing of the transaction. BMO Capital Markets is acting as financial advisor to PIRET, while Greenhill & Co. Goodmans …