Avison Young‘s Industrial Capital Markets Team, led by Erik Foster and Mike Wilson, has completed the sale of a 10-building, 1.7 million square foot industrial portfolio in the Southeast Wisconsin industrial market. The team, based in Chicago, represented CenterPoint Properties Trust in the sale. The sale is one of the largest industrial portfolio sales in the Midwest in recent years. The sales price was not disclosed.
The portfolio includes buildings in the Milwaukee, Waukesha, Washington and Ozaukee County submarkets. The Foster/Wilson team recently sold another 12-building portfolio, totaling 1.2 million square feet, for CenterPoint Properties Trust near the Milwaukee General Mitchell Airport.
“The market continues to see strong demand for stabilized, institutional quality assets with significant upside potential in a strong market,” said Foster, Principal and Practice Leader of Avison Young’s national industrial capital markets team. “The assets that we are selling across the country in secondary markets continue to garner attention as investors move away from the aggressive pricing in primary markets.”
The Milwaukee-area industrial market continues to outperform many major markets in the country and has shown positive absorption over the past two years. A lack of new construction and continued decline in the vacancy rate will allow the new owner to capture strong rent growth across the portfolio.
The portfolio is well diversified with long term credit tenants with a history of renewals and expansions. Among the tenants in the various buildings are BakeMark USA, Insul-Mart, Masco Corporation, Almo Distributing, and Letterhead Press.
The Southeast Wisconsin market’s stability and its location near Chicago and other major transportation corridors also enhance its value. These submarkets overall have consistently outperformed many major submarkets within the U.S., with low vacancy rates and consistent positive absorption throughout. The Avison Young team was assisted on this sale by Chad Vande Zande with The Boerke Co. in Milwaukee.
The properties in the portfolio include:
• W142N9251 Fountain Blvd, Menomonee Falls, WI (182,000 SF) • 5401 West Donges Bay Road, Mequon, WI (464,503 SF) • 7501 N. 81st St., Milwaukee, WI (183,958 SF) • 7025 West Parkland Court, Milwaukee, WI (226,109 SF) • 11925 West Carmen, Milwaukee, WI (100,00 SF) • 2900 S. 160th St., New Berlin, WI (183,480 SF) • 16405 W. Lincoln Ave., New Berlin, WI (91,473 SF) • 16800 W. Ryerson Rd., New Berlin, WI (180,284 SF) • 2450 S. 170th St., New Berlin, WI (36,468 SF) • 6736 W. Washington, West Allis, WI (113,372 SF)