The seller was a "private partnership in Chicago," Szady says. "They built it and have owned it for over 20 years." The majority of the 10 properties in the portfolio are in the O'Hare submarket.
Szady, Jim Carpenter and Joe Voet, all with Cushman & Wakefield's Chicago-based capital markets group, marketed the portfolio and represented the seller. The portfolio consists of 619 Thomas Dr., 626-630 Thomas Dr., 634-644 Thomas Dr. and 222-230 Sivert Court in Bensenville. The portfolio also consists of 1367-1407 Barclay Blvd., 1250 Barclay Blvd. and 1278-1300 Barclay Blvd. in Buffalo Grove. Additional portfolio properties are located at 949-953 N. Larch Ave., Elmhurst and 571-599 N. Edgewood Ave. and 341-361 Haynes Dr. in Wood Dale.
"These are buildings that you cannot find or build in that area," Szady says. "There is no land, west of O'Hare [International Airport] is landlocked." The portfolio is 92% leased with the properties near O'Hare 100% leased, Szady tells GlobeSt.com. "This is great cash flow," he says. The majority of the buildings were constructed between 15 and 20 years ago. "These were more vintage-orientated assets" but are still very functional buildings, he says.
The deal is the third industrial portfolio sale in Chicago so far this year, Szady says. Heitman acquired a portfolio in Bolingbrook and Chicago-based Fifield Cos. also sold a portfolio to Rreef last month, Szady says. "These three deals were all below 6% on existing income," he says. "That is very aggressive pricing and demonstrates Chicago industrial is one of the most desirable markets in the country."
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