Newmark Grubb Knight Frank Capital Group announced it has closed the sale of an eight-building, 340,000-square-foot industrial portfolio in Chicago. A fund advised by Morgan Stanley acquired the buildings, which are all located in Elk Grove Village near O’Hare International Airport, from Gullo International.
Kenneth Szady, SIOR, CCIM, executive managing director of the Midwest Capital Group at Newmark Grubb Knight Frank in Chicago, represented both parties in the transaction.
“These buildings are viewed by institutional investors as being among the best industrial assets in the United States,” said Szady. “The transaction is a tribute to both the Gullo family who designed, developed and owned the properties, and to Morgan Stanley, which only acquires the highest quality assets in the best locations on behalf of its funds.”
The addresses are 695, 2312, 2316, 2320 and 2324 Touhy Ave.; 2445 and 2447 E. Higgins Road; and 2315-2317 Landmeier Road. The portfolio is more than 90 percent leased.
Szady has closed sales amounting to 2.5 million square feet of Class A space since the beginning of 2012, and all of those properties traded at capitalization rates near 6 percent. The capitalization rate is the buyers expected return in the first year, based on the sale price and existing rental income. “These transactions underscore how strong the Chicago market is today,” Szady said.
Szady joined Newmark in March, having previously served at Cushman & Wakefield as an executive director and head of capital markets. In March, he closed the largest 2012 industrial transaction to date in the United States, a 1.35 million-square-foot build-to-suit facility for The Clorox Company in University Park, Ill., on behalf of an institutional client. Over his 24-year career, Szady has closed $7.2 billion in transactions, accomplished across 21 states in 46 cities.
About Newmark Grubb Knight Frank
A part of BGC Partners, Inc. (NASDAQ:BGCP), Newmark Grubb Knight Frank is one of the largest commercial real estate service firms in the U.S. It brings together the strategic consultative approach to creating value for clients and leading position in the New York market that are hallmarks of Newmark; the complementary strengths of Grubb & Ellis in leasing and management, investment sales, valuation and capital markets services; and BGC’s financial strength, proprietary technology, expertise in global capital markets and deep relationships with many of the world’s leading financial institutions.
Newmark Grubb Knight Frank and its London-based partner Knight Frank together operate from more than 300 offices in established and emerging property markets on five continents. This major force in real estate is meeting the local and global needs of tenants, owners, investors and developers worldwide.