IBJNews

Chicago firm enters local industrial market with two big deals

Back to TopCommentsE-mailPrintBookmark and Share

A Chicago firm’s decision to spend more than $40 million to buy 21 distribution buildings on the northwest side further illustrates the strength of the Indianapolis area’s industrial market.

CrossLake Partners, a joint venture between principals of Colliers International’s Chicago office and a Windy City real estate investment firm, bought the buildings earlier this month in two transactions.

REW Park 100 industrial dealCrossLake's acquisition in Park 100 amounted to 440,000 square feet of multi-tenant industrial space. (IBJ Photo/Scott Olson)

It purchased 12 properties totaling 656,000 square feet—10 in Corporate Center North and two in Zionsville Business Park—from California-based CalEast Global Logistics LLC for $24.3 million.

CrossLake also spent $18.4 million to acquire nine buildings totaling 440,000 square feet in Park 100 from Duke Realty Corp.

The $42.7 million investment marks CrossLake’s first foray into the Indianapolis area, said David Kahnweiler, CEO of Colliers’ Chicago office.

“We’ve always been in the mode of acquiring real estate, particularly in Chicago, but we see a big opportunity in what the institutions call the tertiary markets,” he said. “Many of the institutions don’t want to be in the smaller Midwestern markets.”

Corporate Center North at West 71st Street and Interstate 465 was developed in 1980. Ranked as the area’s 19th-largest industrial park, it totals 675,000 square feet and is 82 percent leased, according to IBJ statistics.

The much-larger Park 100, developed starting in 1972 by locally based Duke Realty, totals 7.9 million square feet and is 97-percent occupied.

The publicly traded company declined to comment on its sale of the Park 100 buildings, citing corporate policy that prohibits discussing acquisitions and dispositions until after quarterly earnings calls with analysts. Duke Realty’s next call is May 1.

But industrial brokers say Duke Realty is shedding smaller, multi-tenant industrial buildings in favor of larger, single-tenant warehouses larger than 300,000 square feet.

“It was a strategic exit for Duke,” said Pete Anderson, an executive vice president at the Indianapolis office of Chicago-based Becknell Industrial. “As Duke has become a bigger player, they’ve made a strategic decision to move out of those [smaller buildings].”

The Park 100 portfolio purchased by CrossLake includes three single-tenant buildings totaling 142,394 square feet and six multi-tenant buildings totaling 296,740 square feet.

Becknell, which owns 100 industrial buildings in 30 states, entered the local market last year by buying a 250,000-square-foot industrial building in the Axcess70 Business Park north of the Interstate 70 and Mount Comfort Road interchange in Hancock County.

It now plans to construct two buildings on a speculative basis totaling 500,000 square feet on 30 acres it purchased in the North by Northwest industrial park just north of Park 100. Becknell could break ground on the first building in May, Anderson said.

The flurry of activity supports a report from the local CBRE office showing the industrial market is off to a strong start in 2014.

In the first three months, the market absorbed 718,000 square feet, increasing the overall occupancy rate slightly, to 92.9 percent.

A few of the larger lease deals signed in the first quarter: Ford Motor Co.’s 281,000 square feet at Airwest Business Park in Plainfield;  Weaver Popcorn’s 240,000 square feet at AllPoints at Anson in Whitestown; and Chep Pallets’ 212,000 square feet in Franklin Township on Indianapolis’ southeast side.

In addition, two massive build-to-suit projects were announced in the first quarter. Wal-Mart (1.3 million square feet) and Temperpedic (760,000 square feet) have agreed to have facilities constructed in AllPoints Midwest, the joint venture between Browning Investments and Duke Realty, nearly doubling the size of the industrial park from 2.1 million square feet to 4.1 million square feet.

There hasn’t been this much building activity in the local industrial market since 2007, said Andrew Morris, an industrial broker at Summit Realty. But this time it’s different.

“Ninety percent of that new construction [then] was speculative,” he said. “Right now, two-thirds is for build-to-suits with leases already signed or, in rare instances, someone is buying the building.”

Cassidy Turley has been retained by CrossLake as the leasing agent for its buildings in the Park 100 and Corporate Center North industrial parks.

“It’s a very strong endorsement for the strength of our industrial market,” Jeff Castell, a Cassidy Turley principal, said of CrossLake’s entrance into the market.

ADVERTISEMENT

  • Hendricks New Load?
    This article mentions three new tenants at the Airwest Business Park in Plainfield. I believe Hendricks has an Airwest billing point. I'm not sure if Ford, Walmart and Temperpedic would be their customers.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT