CHICAGO—The US industrial market keeps getting stronger, and many investors have set their sights on value-add portfolios. Brennan Investment Group, a US real estate company, and a client of Arch Street Capital Advisors, LLC, a Greenwich, CT-based real estate investment advisory firm, recently took another step into this market segment by acquiring an 11-building portfolio located in eight states and totaling 2,497,982 square feet. The price was $100 million. The seller was an institutional owner.
Brennan has been one of the more active buyers over the past few years, but most of the buildings in this latest portfolio have shorter leases than the company usually acquires, and one property in New Hope, MN, is currently vacant.
“This is a more roll-up-your-sleeves type of acquisition,” Scott McKibben, chief investment officer of Rosemont, IL-based Brennan, tells GlobeSt.com. But he believes it's worthwhile. “If these were 15-year leases, the cap rate would have been much lower. We have a higher risk, but we will also get a higher return.”
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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.
