CHICAGO—Northbrook-based Barnett Capital has just sold for $84 million a 20-property, almost 2.1-million-square-foot portfolio to Brennan Investment Group. About 25% percent of the portfolio—five buildings totaling more than 535,800 square feet of space—is located in metro Chicago, in Chicago Ridge, Libertyville, Lombard, McHenry and Romeoville. Individual property prices within the fully-occupied portfolio were not disclosed.
“This institutional-quality portfolio is comprised largely of single-tenant facilities that are well-located in markets across the US, with a heavy concentration in the Midwest,” says Dan Shachtman, senior director of commercial real estate, Barnett Capital. “It was an appropriate time to sell once we had met the investment objectives we set out to achieve as we amassed this portfolio.”
And the company sounds ready to acquire additional industrial real estate properties. Shachtman says it will focus on value-add opportunities, ranging in size from 20,000 to 250,000 square feet and value from $2 million to $15 million, in the greater Chicago market.
“We're bullish on Chicago and looking for industrial real estate investment opportunities,” he says. “We also believe there is life, and opportunity, outside of an Amazon-leased building. We'll strongly consider properties that have short-term leases, vacancies well-below market and rents that aren't in line with the market and non-institutional attributes or credit tenants.”
Shachtman adds that the firm might acquire manufacturing facilities and also work with owners on sale-leaseback transactions.
As reported in GlobeSt.com, the search for yield in a highly-competitive investment market has led many buyers to watch out for value-add opportunities. Brennan has become one of the most active buyers of industrial properties in the US, especially of well-located, single-tenant class B facilities. It also recently bought a value-add portfolio with properties in eight states and nearly 2.5 million square feet of space.
The largest of Barnett Capital's Chicago area properties, and the largest in its portfolio, was 1100 Corporate Dr. in northwest suburban McHenry. Brake Parts occupies the 378,325-square-foot building, which was developed in 1999.
The other properties in the Chicago area portfolio included:
- 2001 West Kelley Crt., Libertyville, 46,612 square feet
- 970 Lombard Rd., Lombard, 42,920 square feet
- 10047 Virginia Ave., Chicago Ridge, 35,450 square feet
- 737 Oakridge Dr., Romeoville, 32,500 square feet
Two properties are located in IN, three in MO, three in OH, three in PA, and one each in WI, SC, TN, and TX.
Ryan Bain and Zach Graham of CBRE's National Partners industrial investments team in Chicago represented both Barnett Capital and Brennan Investment Group in the transaction.
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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.
