The 22-building portfolio is what remains of the 900,000 sf First Industrial acquired from the local Sivers Family in September 1998 for $44.5 million in cash and stock. The 594,000-sf that remains is mostly warehouse distribution concentrated in the Northeast Columbia Corridor. There was no asking price.
Secured Capital, which is overseeing the disposition for Chicago-based First Industrial, hired the local Grubb & Ellis office to create the offering memorandum and tour interested buyers. Eight of the 10 properties are located in the Northeast Columbia Corridor. The portfolio has an average occupancy of 96% and breaks down to 70% warehouse-distribution space, 20% flex and 10% light industrial.
The biggest properties are Airport Park and Airport Park West, which comprise 256,000 sf in seven buildings and are 100% leased. The next biggest property is the 124,610-sf Johnstone Supply Building, which is 100% occupied by Johnstone.
The two properties outside the Northeast Columbia Corridor are the Omark Business Center and the Lake Oswego Executive Center. Omark is a four-building, 52,000-sf property in Milwaukee that is 87% leased. The Lake Oswego property is a three-building, 37,352-sf property that is 63% leased.
Local industrial property experts told GlobeSt.com in February, when the bids were due, that all the big pension fund advisors and REITs are interested, as well as a significant number of big local players. Portland-based Harsch Investment reportedly had the inside track to acquire the portfolio but after 10 weeks of due diligence and negotiations decided not to purchase the portfolio, opening the door for the as yet unnamed institutional buyer.
First Industrial is reportedly unloading the portfolio after being unable to add to the portfolio by acquiring more properties or by acquiring raw land for new development. "Nobody has been selling properties and the raw land values are too high now for new development based on the lease rates that can be obtained," a local industrial broker told GlobeSt.com in February.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 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.
