The deal was brokered by executive director Kenneth Szady and senior director Jim Carpenter, of Rosemont, IL-based Cushman & Wakefield Capital Markets Group.
"This is methodical selling, because there was a big renewal for one of the tenants and the property was in excellent shape in terms of marketability," Szady tells GlobeSt.com. "They are a long-term owner and building and they sell methodically over time, so this wasn't a distressed situation. They started building the park out over time, and the last building was completed about two years ago."
The properties all have been built within about the last decade, Szady says. The portfolio is 80% leased overall, with tenants including Borg Warner, Oxy-Dry Food Blends, NAL Worldwide, Automart International, Premier Freight Systems, Herregan Distributors Inc., and Chamberlain Group. Asking lease rates in the park are around $5 per square foot net.
"Lincoln really seeks the highest quality well-located assets and they're very selective," Szady says. "This portfolio fits the bill and portfolios of this quality don't avail themselves that frequently. This market clearly outperforms the other submarkets, due to the land constraints for available land and limited supply."
The properties are in the north DuPage submarket, where occupancy rates are around 91% and average asking lease rates near $5.50 per square foot, according to Grubb & Ellis' mid-year industrial market report. "It's probably the closest significant market to O'Hare with good property that doesn't have Cook County taxes," Carpenter tells GlobeSt.com. "Savings are good and it has great highway access. There's no better industrial location than this park."
As GlobeSt.com reported last month, Szady and Carpenter recently also brokered the sale of a 392,000-square-foot north DuPage County portfolio from Morgan Stanley to TA Associates for $21 million. "This is another good sale, and further evidence that good property is very liquid today, especially in Chicago," Szady says. "By the results, you see there's not a problem finding buyers out there and the market is very efficient and competitive for high-quality assets."
There was no asking price for the portfolio. "We had abundant interest in the portfolio, it was actively priced and it was a competitive and efficient transaction," Carpenter says. "We had several bidders in a tight range at the end of the deal. That's the sign of a functioning market."
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