JLL announced today that it has closed the $54 million sale of a 1.4-million-square-foot industrial portfolio in eastern Iowa. This transaction marks one of the largest industrial portfolio sales for the state in both size and value.
JLL marketed the portfolio on behalf of the seller, 2570 Independence LLC, which sold the assets to an undisclosed buyer.
The Class-B portfolio consists of five buildings that were constructed in the early 2000s. Three buildings are located in Iowa City at 2561, 2570 and 2610 Independence Road totaling 992,250 square feet and 48.92 acres, while the fourth and fifth buildings are located in Cedar Rapids at 5404 and 5507 Ely Road totaling 410,000 square feet and 21.2 acres.
According to JLL’s most recent Des Moines Industrial Insight report, construction prices are on the rise due to the supply chain constraints associated with obtaining building materials through the U.S. as a result of the pandemic. This is forcing developers to closely monitor their costs to see if projects will be feasible at current market rates.
Currently 80 percent occupied, JLL’s Managing Directors Marcus Pitts and Justin Lossner, and Vice Presidents Michael Minard and Austin Hedstrom took over the leasing assignment in August 2020 and closed on the sale less than a year later. Selected by new ownership to continue the leasing agreement, JLL anticipates the portfolio will be fully occupied by the end of 2021.