(Read more on the industrial market.)
NASHVILLE-Following on the heels of a joint venture in at the end of 2006, Winthrop Realty Trust and Sealy & Co. have partnered again--this time on the acquisition of 1.15 million sf of industrial space here. The deal came with an $87.2-million price tag.
Of the purchase price, $74 million was finance through a first mortgage; a Winthrop spokeswoman tells GlobeSt.com that she did not have information on the cap rate. Under terms of the transaction, Sealy will oversee the day-to-day operations of the venture; and Winthrop's initial percentage ownership is 50%.
The 13 light distribution and service centers are currently 82% occupied, although no tenant roster or rental rates were available, the spokeswoman adds. She explains that Winthrop aims to maximize long-term shareholder by acquiring undervalued properties, investing in them, and turning them around.
In December, Boston-based REIT Winthrop and Sealy joined for the acquisition of 12 flex properties in Atlanta. That 472,000-sf deal came in just under $38 million. It was financed through a $28.75-million first mortgage, as GlobeSt.com previously reported. Winthrop has a 60% limited partnership in the venture.
The local industrial market has been heating up lately, with New York City-based KTR Capital Partners taking 1.3 million sf across the metro area in a $45-million deal, as GlobeSt.com reported last week. According to CB Richard Ellis's first quarter Nashville Industrial Market View, average asking lease rates have steadied at $3.92 per sf.
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