Riverwoods, IL-based Venture One Real Estate LLC negotiated the sale for First Industrial. The firm was hired in 2000 to dispose of the portfolio, with principals Roy L. Splansky and Mark B. Goode handling the transaction. Darin Ferguson, principal with Des Moines-based Ferguson Commercial Real Estate Services, also assisted in the deal.
"The obvious marketing strategy was to sell all nine buildings to a single buyer;" says Splansky. "However, with patience and perseverance, we were able to tailor individual assets to the investment criteria of individual buyers, maximize the value of the portfolio to $23,950,000 and achieve a price nearly $2,500,000 more than the highest bid for the portfolio as a whole."
The three warehouse and distribution facilities are situated on a 33-acre site within the Guthrie Avenue Business Park on the northeast side of Des Moines. The properties include the 263,196-sf 4141 Dixon Ave. building, 4161 Dixon Ave. and 4121 Dixon Ave., the only single-tenant property. All bulk-warehouse properties, the buildings are 100% leased.
The other six assets include one building sold in January 2001 for $3.2 million to Chicago-based net-lease investor Bradley Associates. Another three properties went in June 2001 for $2.1 million to a private Des Moines investor who was represented in the transaction by Morey Knutsen with the Des Moines office of Grubb & Ellis/Mid-America Pacific. Two additional buildings were sold in August 2002 for $6.8 million to Omaha investor World Group LLC.
First Industrial acquired the properties in 1994 but later decided to exit certain markets, including Des Moines. First Industrial owns, operates, manages and has under development more than 80,000,000 SF of space in 25 markets nationwide.
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