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CHICAGO-First Industrial Realty Trust Inc. has added 3.8 million sf of fully leased space to its portfolio, paying $152 million to Milwaukee-based Rockwell Automation, Inc. for 24 properties in the US and Canada. Rockwell Automation is leasing the properties back from the REIT at terms ranging from five to 15 years.
CB Richard Ellis' James Whalen tells GlobeSt.com the deal, which includes manufacturing as well as research and development assets, is unique in its makeup. "A sale-leaseback of this size and type of corporate portfolio, made up primarily of manufacturing facilities, is a first in our industry," says Whalen, who represented Rockwell Automation with Christopher Reynolds and Andrew Sandquist, Todd Lippman, Tim Reynolds and Vic Toft. "The majority is manufacturing properties."
Properties range up to 500,000 sf, Whalen tells GlobeSt.com, and include some office space, but not the company's corporate headquarters. "It's really a broad base of properties," Whalen says. "It's really a North American portfolio."
For Rockwell Automation, the deal allows the company to free up capital by reducing the amount of properties it owns, says director of global real estate Denis DeCamp. "This allows the company to invest in higher growth opportunities," he adds.
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