Chicago, IL – May 4, 2011 – (RealEstateRama) — Cushman & Wakefield of Illinois, Inc. (C&W) announces the largest industrial portfolio sale in the Midwest since the economic downturn began in 2008. The portfolio, which includes seven buildings in northwest Chicago and one in the Milwaukee, WI, area, totals more than two million square feet. Jim Carpenter, Senior Director, and Ken Szady, Executive Director, from C&W’s Capital Markets Group, represented the seller, a joint venture between Interstate Partners and Towne Investments, in the marketing and sale of the portfolio. In addition, Cushman & Wakefield Sonnenblick Goldman, the firm’s debt and equity finance division, secured permanent financing of the portfolio for the buyer, Stockbridge Real Estate Funds.
The Illinois properties are located within two adjacent industrial parks in Elgin, IL near the Randall Road/I-90 interchange– the NorthWest Corporate Park and the NorthWest Business Park – and are 95% leased to 18 tenants. The Milwaukee-area property is located at the RidgeView Corporate Park within the city of Pewaukee and is 100% leased. All eight of the portfolio’s industrial buildings are best-of-class properties attracting market-leading rental rates.
Industrial investment volume for the Chicago market showed improvement during the second half of 2010 following record-low volume in 2009. The current pipeline of transactions closed or in the market and expected to close totals more than $500 million, putting the market on pace to return to normal industrial sales volumes in 2011.
“As the market leader, we’re very pleased to have completed the first of many large transactions we will see in 2011” said Mr. Carpenter. “Going forward, it’s our view that the investment market will now broaden to include Class B assets as well as properties with lease rollover and vacancy as investors become more comfortable underwriting risk and seek higher yields.”
About Cushman & Wakefield Sonnenblick Goldman
Cushman & Wakefield Sonnenblick Goldman is the industry’s leading independent real estate investment banking firm. The firm was founded as Sonnenblick Goldman in 1893 and it merged with Cushman & Wakefield in 2007. Cushman & Wakefield Sonnenblick Goldman provides a full range of real estate financial services, including debt and equity placements, joint ventures, hospitality investment sales and workout advisory services, and it collaborates world-wide with other divisions of Cushman & Wakefield. Further information can be found at the firm’s website at www.cushwake.com/sonngold.