The 10-property, 22-building portfolio, mostly warehouse distribution concentrated in the Northeast Columbia Corridor, 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.
There was no asking price for the portfolio. Original bids for the portfolio were due in February. 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. The sale to TA Realty Associates Fund VI closed in September.
Brian Bennett, who ran the Portland operation for First Industrial, tells GlobeSt.com that two of the 22 buildings--one 10,000-sf building and one 21,000-sf building--were sold to owner/users prior to TA Associates picking up the rest. Ryan McClean, First Industrial's chief investment officer, tells GlobeSt.com that the company's original intention was to build up the portfolio, but was unable to because few existing properties came to market and raw land values were too high. "So we slowly whittled down the portfolio until it (was of a size that) really didn't make sense for us to continue operating an office there," says McClean. "At that point we decided to take it to market."
Secured Capital, which oversaw 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. As of July, the portfolio had an average occupancy of 96%.
The biggest properties are Airport Park and Airport Park West, which comprise 256,000 sf in seven buildings. The next biggest property is the 124,610-sf Johnstone Supply Building. 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. The Lake Oswego property is a three-building, 37,352-sf property. Seattle-based GVA Kidder Mathews, which recently expanded into Portland, has been handed the management assignment.
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