PRINCETON, N.J. — CB Richard Ellis (CBRE) Realty Trust has acquired an approximately 1.85 million-square-foot industrial portfolio for $81.25 million. The portfolio includes six Class A bulk warehouse buildings located in major distribution markets across the country. The single- and multi-tenant properties were constructed between 1998 and 2002.
The properties include:
• Rickenbacker II, a 434,120-square-foot building located at 6440 Port Road in the Columbus, Ohio, suburb of Groveport. The building is approximately 47 percent leased to Excel Inc.
• 4701 Gold Spike Drive, a 420,360-square-foot building located in Fort Worth, Texas. The building is fully leased to ConAgra Foods.
• 3660 Deerpark Boulevard, a 321,500-square-foot building located in the Jacksonville, Fla., suburb of Elkton. The building is also fully leased to ConAgra.
• Summit Distribution Center, a 275,080-square-foot building located at 720 Gladiola St. in Salt Lake City. The building is 90 percent leased to Cummins Filtration, Big O Development and Marko Product.
• Tolleson Commerce Park II, a 217,422-square-foot building located at 5 S. 84th Ave. in Phoenix. The building is fully leased to Menlo Logistics, Docusafe of Phoenix and Weber Distribution.
• 1985 International Way, a 189,400-square-foot building located in the Cincinnati suburb of Hebron, Ky. The building is fully leased to McLane Foodservice.
The portfolio was attractive to CBRE Realty Trust due to the location of the properties in major distribution markets as well as the overall high occupancy rate and quality of the properties.
“One of the other things that is certainly attractive about this portfolio is the ability to buy in bulk in a diversified manner,” says Charles Hessel, director of investments for CBRE Realty Trust.
The deal is a highlight in what could be seen as a slower year for the industrial markets. Large properties and portfolios are not trading with the frequency of years past. However, this is not seen as a problem.
“Industrial is popular enough among the institutions that the ones who own it don't want to be sellers, and it's not so much a problem where if you brought it to market there would not be buyers. There's still good demand. People are looking for quality,” says Paul Kianka, executive vice president and COO of CBRE Realty Trust.
Gary Jaye of CBRE Investors led the brokerage team that represented CBRE Realty Trust in the purchase.
— Coleman Wood