CHICAGO–Brennan Investment Group has recapitalized a 11-property industrial portfolio for $159.2 million with the Saudi Arabian firm Sidra Capital. The seller in the deal was a JV that included Arch Street Capital and Gatehouse Financial Group and that was represented by HFF. HFF also secured a 67% LTV, 10-year, fixed-rate loan with Goldman Sachs for the new owners.
The portfolio, called USIPA, totals 2.77 million square feet and is located in and around Atlanta, Chicago, Detroit, Minneapolis, Akron and Cincinnati in Ohio, Philadelphia and Dallas. Situated on a total of 199.9 acres, the portfolio is triple net leased to nine tenants and features single-tenant buildings ranging from 90,000 to 578,000 square feet.
The HFF debt and equity placement team included Claudio Sgobba, Christopher Carroll, Robin Stolberg, Kurt Sarbaugh, Matthew Schoenfeldt and Jules Sherwood.
Sgobba said that USIPA has averaged a 96% historical occupancy over the past decade and will deliver a cash-on-cash return supported by a WAULT (weighted average unexpired lease term) of 12 years.
Sidra Capital made its debut in the US market in 2016 when it with the $93 million acquisition of a newly-built office in the Charlotte suburb of Fort Mill, SC.
Brennan Investment Group's recent activities in this space include a 2.3-million square foot sale leaseback in February with BlueLinx as part of its partnership with Arch Street Capital.
In January of this year Brennan acquired 10 parcels and announced its intention to begin construction of the Elk Grove Technology Park, which would be aimed at e-commerce, digital manufacturing, and data centers tenants. Brennan and Greenfield Partners formed a joint venture to acquire, construct, and lease the largest unimproved land site in the O'Hare marketplace.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
