NAI Hiffman, the largest independent commercial real estate services firm in the Midwest, today announced its Industrial Capital Markets Team brokered the sale of a three-building industrial portfolio in Bartlett, Illinois, a western suburb of Chicago, and Phoenix.
The GSI Family Office, along with Greco/DeRosa Investment Group, a wholly owned subsidiary of The Greco Family, sold the three properties – located at 1323 Brewster Creek Blvd. and 1550 Hecht Drive in Bartlett and 4450 N. 45th Ave. in Phoenix – to a discretionary fund managed by CBRE Global Investors. GSI and Greco/DeRosa were exclusively represented by NAI Hiffman’s Pat Sullivan, executive vice president; Ryan Chambers, vice president; and Jeff Fischer, executive vice president. Tony Lydon, national director, and John Lydon, vice president of Jones Lang LaSalle assisted in the sale of the Phoenix property.
“Nationwide, there is great demand for core industrial properties, especially with a cold storage component,” said Sullivan. “The pandemic accelerated a trend already underway — consumers’ growing demand for fresh and frozen foods — and it’s likely to continue. With the limited availability of stabilized, core warehouse product in the Chicago area and Phoenix, and the cold storage component of the portfolio, the buildings attracted significant interest.”
“The very strong market convinced us this was the right time to sell these assets and get capital to invest back into our real estate development business,” said Ron DeRosa, principal of Greco/DeRosa. “Pat and his team brought us a number of competitive offers, and we were able to come to terms in a timely fashion despite any extra hurdles caused by COVID-19. The Greco family had assembled a portfolio of fully leased quality facilities that made the deal work even during a trying time in our economy.”
Built in 2017, 1323 Brewster Creek Blvd. is a 421,354-square-foot building with 48 docks, 32-foot clear heights and 800 parking spaces. It was the first building in the Brewster Creek Business Park, which now has over 1 million square feet of food-related companies in the park. Built in 2006, 1550 Hecht Drive is Greco Foods’ headquarters. It is a 209,628-square-foot warehouse with offices and a cold storage component. Built in 2017, 4450 N. 45th Ave. in Phoenix is a 368,478-square-foot multi-tenant warehouse, one unit of which has a freezer/cooler component. The portfolio was fully stabilized at the time of sale with a weighted average remaining lease term of approximately eight years and a diverse rent roll of seven tenants across the three buildings.
The Bartlett properties offer proximity to Interstates 90, 290 and 355 and are located about 25 miles from O’Hare International Airport, while the Phoenix property is near interstates 17 and 10 and about 12 miles from Phoenix Sky Harbor International Airport.
In the past investors usually would not pursue an opportunity with a cold storage component because of the special use nature of the asset, but today that is a positive and part of the reason investors were attracted to the portfolio, Sullivan said. Chicago’s cold storage market totals more than 11 million square feet and had just a 2.5% vacancy rate in second-quarter 2020, according to NAI Hiffman analysis of CoStar data.
About NAI Hiffman:
NAI Hiffman is the largest independent real estate services firm in the Midwest, providing leasing, property management, tenant representation, capital markets, project management and marketing services for institutional and private owners and occupiers of commercial real estate. It currently leases and manages a 91.3+ million square foot portfolio of more than 700 commercial properties throughout the region, with a primary focus on metropolitan Chicago. With more than 200 employees, NAI Hiffman is the Chicago-area representative for NAI Global, the world’s largest managed network of real estate service providers, with more than 6,700 local market professionals managing more than 380 million square feet of property. NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific. For more information, please visit www.hiffman.com.
NAI Hiffman brokered the sale of 1323 Brewster Creek Blvd. in Bartlett, Ill.
NAI Hiffman brokered the sale of 1550 Hecht Drive in Bartlett, Ill.
NAI Hiffman brokered the sale of 4450 N. 45th Ave. in Phoenix.