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CenterPoint Signs $168M BTS Deal With Wal-Mart

ELWOOD, IL-The retail giant could buy the two distribution facilities totaling 3.4 million sf in the CenterPoint Intermodal Center for $157.4 million next year, or begin leasing them for 15 years at $11.2 million per year.

By Mark Ruda | Updated on August 31, 2005

(To read more on the industrial market, click here.)

ELWOOD, IL-CenterPoint Properties Trust will build two distribution facilities totaling 3.4 million sf for retail giant Wal-Mart in its intermodal center here, signing 15-year leases with options to extend as long as 50 years or purchase the build-to-suits. The Oak Brook-based REIT, the largest industrial owner in the market, stands to collect $11.2 million a year over the life of the lease, or sell to Wal-Mart for a combined $157.4 million, according to a Securities and Exchange Commission filing.

The $157.4-million purchase price is good until next summer, when construction is expected to be completed and Wal-Mart is scheduled to take possession of the buildings. Otherwise, the price becomes $203 million when the initial leases expire in 2020, according to CenterPoint Properties Trust’s SEC filing.

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