The cap rate on the properties is above 7%, says Ken Szady, executive director of Cushman & Wakefield's capital markets group. Szady is handling the portfolio, along with Jim Carpenter, senior director.
The River Grove properties are at 8999 W. Palmer St., a 550,000-sf building, and at 1810 5th Ave, a 100,000-sf building. Both are occupied by single tenants, which deal in low-price, high-volume merchandise and sell to stores like Wal-Mart and the Dollar Store. The Palmer Street property has been occupied by its current tenant for more than a decade, Szady says.
The Mount Pleasant property is a 550,000-sf facility at 7100 Durand Ave. The largest of two tenants occupying this industrial facility is Liquid Container.
Tenant leases in all three of the buildings extend past 2012, Szady says. Lease rates in all three buildings fall around $3.50 per foot, net, he says. "You have above average lease terms on all of the buildings and they're 100% leased," Szady says. "It's driven by the location. It's tough to get good buildings in these kinds of locations."
The properties are in the O'Hare and Southeast Wisconsin submarkets. "They're in good locations with strong occupancy historically," Szady says.
Szady says CenterPoint will consider all offers for the properties, whether made for individual buildings or the entire portfolio. He says he's already received signed confidentiality agreements from several interested parties. "Even though there's turmoil in the marketplace, the certainty of the stable cash flow creates good interest," Szady tells GlobeSt.com. "We've seen positive, above-average response, but the question is who will have the cash and equity to close the deal. The question in today's market is who can get to the finish line first."
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