Westmount Realty Capita is partnering with a fund managed by the Real Estate Group of Ares Management Corporation to recapitalize a 51-asset industrial portfolio totaling 6.1 million square feet located in established industrial submarkets of Chicago and Milwaukee.
Westmount and Ares acquired the institutional-quality portfolio of logistics, bulk distribution and last-mile industrial properties from a Partners Group Westmount joint venture.
The portfolio consists of primarily infill, multi-tenant light industrial properties that provide enduring functionality and long-term leasing optionality. The majority of the portfolio is located in the Chicago MSA, and the largest cluster of assets is proximate to O’Hare International Airport. The portfolio is currently 98.8 percent leased to a roster of 123 national and regional tenants with an attractive lease rollover profile. The top 10 tenants in the portfolio account for 42.5 percent of the total leased area with no single tenant accounting for more than 9.9 percent of the portfolio.
Driven by a highly connected rail and highway system, Chicago is an international trade hub for the Midwest, as well as a critical market for distribution networks. Its highway system serves 9.5 million residents, and 30 percent of all U.S. freight originates or passes through Chicago. The city also continues to rank as a top-five market for net absorption of industrial space nationally.
Michael Caprile with CBRE and Josh McArtor with Eastdil handled the transaction on behalf of the seller.
