Ryan Leases, Sells Randall Crossings

ELGIN, IL-Ryan Cos. has sold the 100,300-square-foot 2755 Alft Ln. to The Elgin Co., owned by Seigle Investments, for $6.5 million. Prior to its sale, Ryan had leased the entire building to storage company Iron Mountain for a 10-year term. Ground was broken on the building in summer 2007 within the 70-acre Randall Crossings Business Park.

“The plan was always to build a spec building there and fill it up,” Tim Hennelly, VP of development for Ryan’s Chicago office, tells GlobeSt.com. “As a developer in that park, we thought the cap rates were starting to notch up a little bit, and I think that’s come to be true. We thought we’d strike while the iron was hot, before the cap rates really notched up.”

The cap rate on the deal was 7.35% for the first 12 months. Rent is slated to increase by 2.5% per year for the remainder of Iron Mountain’s decade-long lease. The building was marketed for around $5.25 per square foot net, but Hennelly says Iron Mountain got a lower rate because of leasing the entire property.