(Read more on the industrial market.)
BOLINGBROOK, IL-CB Richard Ellis Realty Trust has acquired Bolingbrook Point III, a 185,045-sf industrial building at 530 W. North Frontage Rd. The sales price was nearly $17.9 million. The seller was McShane/MetLife Alliance, a joint venture between Rosemont-based McShane Cos. and Morristown, NJ-based MetLife Real Estate Investments, confirmed Phil Kianka, chief operating officer for CB Richard Ellis Realty Trust. A cap rate was not disclosed.
The warehouse and distribution facility is fully leased to two tenants. Charlotte, NC-based Compass Group USA Inc., managed by its subsidiary Coastal Food Service, leases 98,414 sf in the building, which includes 9,966 sf of cooler space, 11,520 sf of cooler dock staging and 28,800 sf of freezer space, according to a press release from McShane on the Compass lease.
Kraus Floors LLC, a joint venture between Waterloo, Canada-based Kraus Carpet Mills and Nanterre, France-based Tarkett Group, leases 86,631 sf in the building. Both tenants signed leases this year, according to press releases from McShane Cos. The terms of both leases are 10 years, Kianka says. Asking lease rates for the building were not disclosed.
Construction on the pre-cast and steel cross-dock facility began in October 2005 and was completed in May 2006, according to McShane press releases on the project. The building, which was designed by Dobrin + Associates Ltd., has 30 foot clear height ceilings, Early Suppression Fast Response (ESFR) sprinklers, 20 exterior truck docks and freezer and cooler space. The building is located on a 10.6-acre site and is part of the 46-acre, three-building Bolingbrook Point Corporate Center developed by the joint venture. The corporate center has frontage on I-55. CB Richard Ellis had been the marketing agent for the property.
The trust acquired the property because it "was a strategic fit to the portfolio that we are currently accumulating," Kianka tells GlobeSt.com. In particular, the trust liked the tenant base, "its location, its access in the Chicago market [and that] it afforded us our first opportunity to sort of expand in different markets," he says. The typical hold time for the trust is five to seven years, but it may have a long-term hold for this class A building, Kianka says.
The acquisition of Bolingbrook Point III is the ninth acquisition for CB Richard Ellis Realty Trust, Kianka says. Other acquisitions have been in San Diego, Boston, Atlanta, Texas and the United Kingdom. "We also just made a large acquisition of a portfolio of properties in North and South Carolina," Kianka says. The focus of the trust is office, retail, industrial and multifamily residential properties in major metropolitan areas across the country. The trust also will have up to 30% of the assets in investments outside of the United States. The trust is sponsored by Los Angeles-based CB Richard Ellis Investors LLC, which is a wholly owned subsidiary of CB Richard Ellis Group Inc.
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