Transwestern Investment Group (TIG) has sold a 10-building, 2.9 million-square-foot industrial portfolio on behalf of its discretionary investment fund, TSP Value and Income Fund II.
The properties, which were 100% leased at the time of sale to Stockbridge, span Missouri, Indiana and Ohio, said Transwestern.
“The disposition reaffirmed TIG’s strategy to aggregate high-performing Midwest industrial product to create a multimarket portfolio that would provide the buyer an immediate presence in the region at a purchase price below replacement cost,” said Ryan Grable, Vice President at TIG.
“Historically low industrial cap rates and high demand among investors made this the right time to sell the portfolio,” he added.
The portfolio includes five buildings in St. Louis, two buildings in Indianapolis and three buildings in Columbus, ranging from 125,000 to 706,000 square feet.
Transwestern said St. Louis, Indianapolis and Columbus are important e-commerce markets experiencing low industrial vacancy, positive net absorption and year-over-year rent growth.
”Among the 24 tenants, the weighted average lease term is 3.23 years and in-place rents are approximately 8% below current market rates,” said the company.
CBRE’s Michael Caprile and Zachary Graham represented TIG in the transaction.