ELK GROVE VILLAGE, IL-Two industrial portfolios were recently sold in Chicagoland. A fund advised by Morgan Stanley purchased eight properties totaling 340,000 square feet here for more than $40 million, and Brennan Investment Group bought five buildings totaling 150,000 square feet in Harvey and Calumet City.
Morgan Stanley purchased five properties along Touhy Avenue, two properties on East Higgins Road and one site on Landmeier Road from Gullo International. Ken Szady, executive managing director at Newmark Grubb Knight Frank here, represented both parties in the transaction. He said in a statement that the portfolio is more than 90% leased by tenants such as SDV, Oriental Motor and Metal Processing Systems Inc.
Brennan bought its portfolio from Oshkosh Defense, a military vehicle manufacturer, represented in the deal by Walter Murphy with Lee & Associates. The warehouse properties were vacant at the time of purchase, but Michael Brennan, co-founder of the company, tells GlobeSt.com that the half of the portfolio has already been leased to wood products distributor Glu-Lam Inc. “We should be able to lease up the rest of the portfolio in less than a year,” he says.
The time is right to be out buying, Brennan says, since most of the major national industrial markets have posted positive space absorption. “It’s a good time to step out on the risk spectrum for value-add properties,” he says. “With more tenants taking more space, that makes me more comfortable doing these deals. This is the type of deal we wouldn’t have done in 2009 or 2010.”
Brennan’s firm has been more active of late, including a recent partnership with Columbia, MD-based Manekin for up to $150 million in planned Mid-Atlantic acquisitions per year.
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