NORTHBROOK, IL-With plans to reallocate capital back into its primary trade of insurance brokerage, locally based Allstate Insurance Co. is selling a nine-building portfolio consisting of 962,323 rentable sf throughout the country. Allstate occupies 71% of the portfolio and plans to leaseback the majority of space under 10-year lease agreements. The company expects to close on the portfolio sale by year’s end.

The asset portfolio is estimated to fetch $175 million at a low-6% cap rate, says Kevin Gazley, senior vice president with Colliers Bennett & Kahnweiler Inc., the brokerage company retained to sell the portfolio. “Allstate is capturing the robust investment market, in addition to getting out of the landlord business,” Gazley tells GlobeSt.com. “I think it’s an ongoing trend to really free-up real estate assets and redeploy that money into a company’s core business.”

The projected 2006 NOI for the asset collection is $10 million, and is expected to grow to nearly $14 million throughout the next 10 years. Other tenants, 15% that are investment-grade tenants, currently occupy a total of 171,297 sf. A total of 11.3% or 108,744 sf of the portfolio is vacant, much of which extends from the northwest assets.

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