Transwestern Investment Group sells 3.5 million sq-ft industrial portfolio

industrial portfolio

Real estate investment management firm, Transwestern Investment Group announced it has sold a 3.5 million-square-foot industrial portfolio on behalf of one of its discretionary investment funds, TSP Value and Income Fund I.

An institutional foreign buyer acquired the 21 logistics facilities spanning Illinois, Ohio, Indiana and Kentucky,said in statement.

“This sale confirmed TIG’s strategy to acquire smaller portfolios of high-quality warehouse assets to construct a larger, homogenous, multimarket industrial portfolio that would achieve efficient exit pricing in a single transaction”, said Scott Fitzgerald, Executive Managing Director at TIG.

“The key was aggregating a highly functional, well-leased portfolio of infill bulk warehouse product that has seen significant user demand driven primarily by the e-commerce sector.”

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The portfolio includes four buildings in Chicago, two buildings in Cincinnati, 12 buildings in Columbus, two buildings in Indianapolis, and one building in Louisville. TIG added significant value to the portfolio by completing capital improvements, increasing the weighted average lease term, and raising the net operating income by nearly 20 percent during its ownership.

Collectively, the assets were 91 percent occupied at the time of the sale. The portfolio ranged from small bay to large distribution facilities and included single-tenant and multitenant buildings.

The national industrial market continues to outperform in response to unprecedented demand. While nearly 1 billion square feet of new inventory has delivered in the past three years, the year-end vacancy rate was 4.7 percent, less than half of the post-recession high of 9.5 percent in 2010, according to Transwestern’s research on the national industrial market. Of the 47 markets Transwestern tracks, more than 90 percent experienced year-over-year rent growth, and all but four markets posted positive net absorption for the year.