An affiliate of Midwest Industrial Funds recently sold a 109,000 SF building located at 5300 Katrine, Downers Grove, IL to Gramercy Property Trust for over $10 million. The property is leased long term to Valid USA which uses the facility for manufacturing, warehousing and offices. Mike Caprile and his team at CBRE represented Midwest Industrial in the property disposition. Lee & Associates represented Midwest Industrial on the original acquisition. Lee & Associates also represented the landlord on the lease extension in conjunction with JLL who represented the tenant, Valid USA.
Throughout 2014 Midwest Industrial and Valid jointly completed an extensive, multi-million dollar renovation of the property which included a new roof, new exterior façade, new parking and loading areas, improved storm water management system as well as new offices, lighting and construction of a secured production area inside the building.
Justin Fierz, a Principal with Midwest Industrial Funds stated, “we are really proud of the new life we were able to give this property. We have a lot of experience renovating older but still functional “B quality” industrial buildings and modernizing them to today’s standards to attract and retain quality tenants. This project was way beyond typical with the amount of coordination and cooperation needed with Valid who was operating a live production operation in the facility throughout the entire renovation. All of the construction and project management professionals who worked on this project did an incredible job to bring the joint vision of landlord and tenant to a reality 12 months later. Valid is a high caliber tenant and it was a very tough decision to sell this asset. However, the investment market is strong and we felt we added all of the value we could to this investment. We have already redeployed some of the sale proceeds into a fully discretionary fund we recently formed and are working on numerous new acquisition opportunities.”
