CHICAGO—CenterPoint Properties Trust has just sold a 10-building, 1.7-million-square-foot industrial portfolio in the Southeast Wisconsin industrial market, one of the largest industrial portfolio sales in the Midwest in recent years. The sales price was not disclosed. Avison Young's Chicago-based industrial capital markets team, led by Erik Foster and Mike Wilson, handled the sale for CenterPoint.
The portfolio includes buildings in the Milwaukee, Waukesha, Washington and Ozaukee County submarkets. As reported in GlobeSt.com, the Southeast market has been one of the hottest industrial markets in the region, one very attractive to investors. Foster and Wilson, for example, recently sold another 12-building portfolio, totaling 1.2 million-square-feet, for CenterPoint near the Milwaukee General Mitchell Airport.
"The market continues to see strong demand for stabilized, institutional quality assets with significant upside potential in a strong market,” says Foster, principal and practice leader of Avison Young's national industrial capital markets team. “The assets that we are selling across the country in secondary markets continue to garner attention as investors move away from the aggressive pricing in primary markets.”
The industrial market continues to outperform many major markets in the country and has shown positive absorption over the past two years, he adds. And a lack of new construction and continued decline in the vacancy rate will allow the new owner to capture strong rent growth across the portfolio.
The portfolio has a group of long term credit tenants with a history of renewals and expansions. Among the tenants in the various buildings are BakeMark USA, Insul-Mart, Masco Corporation, Almo Distributing, and Letterhead Press.
The properties in the portfolio include:
- W142N9251 Fountain Blvd., Menomonee Falls, WI (182,000 SF)
- 5401 W. Donges Bay Rd., Mequon, WI (464,503 SF)
- 7501 N. 81st St., Milwaukee, WI (183,958 SF)
- 7025 W. Parkland Crt., Milwaukee, WI (226,109 SF)
- 11925 W. Carmen, Milwaukee, WI (100,00 SF)
- 2900 S. 160th St., New Berlin, WI (183,480 SF)
- 16405 W. Lincoln Ave., New Berlin, WI (91,473 SF)
- 16800 W. Ryerson Rd., New Berlin, WI (180,284 SF)
- 2450 S. 170th St., New Berlin, WI (36,468 SF)
- 6736 W. Washington, West Allis, WI (113,372 SF)
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
