Avison Young negotiated a 189,000-square-foot industrial sale/leaseback in Chicago. The building, located at 3700 South Kedzie Avenue, is 100 percent occupied by Gold Standard Baking, a leading manufacturer of croissants and sweet baked goods. The company has occupied the buildings for more than 20 years and has long-term plans to remain in the location.
Avison Young principals Erik Foster and Mike Wilson, based in the company’s Chicago office and leaders of the firm’s national industrial capital markets group, in conjunction with Avison Young principals Brendan Kelly and Todd Heine, who are also based in the Chicago office, represented Gold Standard Baking. The buyer was New York-based institutional fund advisor Angelo, Gordon & Co. Financial terms were not disclosed.
“This portfolio provided investors with tremendous long-term stability, as it is fully leased to a strong-credit tenant,” said Foster. “The recession-resistant food industry tenant relies on the location for its operations, making this a solid investment with long-term growth potential for the new owner.”
The sale/leaseback represents a component of the broader real estate strategy for Gold Standard Baking. In the last three years, the company underwent an extensive 22,467-square-foot expansion to its Chicago site in order to house a new baking line to meet increased product demand. In addition, the company opened a new 200,696-square-foot bakery in Pleasant Prairie, Wisconsin in 2017 in order to support customer growth.