(Read more on the industrial market.)
ITASCA, IL-ML Realty Partners LLC, based here, has purchased a 1.9-million-sf industrial portfolio from CenterPoint Properties, based in Oak Brook, IL. The purchase price was $122 million, ML Realty Partners president and CEO Michael Luecht confirms. A cap rate was not disclosed. Colliers Bennett & Kahnweiler represented CenterPoint Properties in the transaction.
The portfolio consists of 21 industrial buildings, with 16 buildings throughout the Chicagoland area and five buildings in Milwaukee. Some of the Chicagoland buildings are located in St. Charles, Elk Grove Village, Arlington Heights, Franklin Park, Glendale Heights and Elmhurst, Luecht says. The buildings are 90% leased. The portfolio includes both single-tenant and multi-tenant buildings, Luecht says.
One of the multi-tenant buildings is located at 2701 S. Busse Rd. in Elk Grove Village, IL. The largest tenant in the 251,083-sf building is J & L Industrial Supply, he says. Another major tenant of the portfolio is Exel, a logistics company, at 425 S. 37th Ave. in St. Charles, IL. Luecht says he cannot give an average age of the buildings or an average lease rate because it is "a broad, diverse" portfolio.
ML Realty Partners and CenterPoint closed on the transaction 17 days after agreeing on it. The acquisition is the largest in the company's five-year existence, Luecht says. "Our goal from day one, and it remains, is to be a long-term owner in the Chicagoland area for industrial real estate." The company has invested in nearly 12 million sf of properties, primarily in the metropolitan Chicago area and in Texas. ML Realty Partners expects to hold the portfolio long-term. It is possible it could sell a building in the portfolio, but the company wants to increase its holdings in the Chicagoland area. "We tend to have more interest in the more mature submarkets than where a lot of the development activity is occurring," Leucht says.
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