CenterPoint Properties has sold two Chicago suburban plants for $39.65 million.
The two buildings, 2645 Federal Signal Drive in south suburban University Park and 1300 W. Bartlett Road in Elgin, total 646,175 square feet and operate under triple-net-leases guaranteed by the Federal Signal Corp.
Jonathan Wolfe, a principal with STREAM Capital Partners LLC, said the purchasers liked the idea of being in a strong industrial market.
“They liked the tenant and the functionality of the buildings. The tenant has been in the buildings for a long time and they’re under a long-term lease with multiple renewal options. (The buyers) felt very good about the credit of the company and they liked the structure of absolute triple net lease. That’s really what drove their interest in the deal,” he said.
Wolfe and Jordan Shtulman represented CenterPoint in negotiations with the undisclosed buyer.
In 2008, CenterPoint paid $22.1 million for the 429,164-square-foot plant in University Park and $15 million for the 217,011-square-foot facility in Elgin, where Federal Signal subsidiary Elgin Sweeper Co. produces street cleaning equipment. Federal Signal manufactures street sweepers, emergency sirens and other products at the plants. Ten years remain on the 15-year lease.
“Nationally, there’s very strong demand for long-term net-leased properties,” Wolfe said. “The Chicago industrial market has been doing well. Vacancy rates have come down and people can finance long-term net-lease deals with pretty attractive debt today, even though interest rates have gone up a bit, so there’s a lot of interest.”
