Duke Sells Phoenix Industrial Properties to Exeter for $56M

Exeter Property Group, the Plymouth Meeting, PA-based real estate investment manager, has purchased two industrial buildings in Phoenix, Arizona from Duke Realty for $55.9 million, or a blended average of $65.45 per square foot. Both properties transfered in cash sales that were brokered by Jones Lang LaSalle in Phoenix; representation was not disclosed. The acquisition adds nearly another 2 million square feet to its Valley portfolio; the company said it is looking to acquire additional properties in the market.

The first property at 4570 W. Lower Buckeye Road in the Riverside Business Center includes 603,910 square feet of space. The distribution warehouse building was originally developed in 2007 and acquired by Duke Realty in 2011 for $24 million; Exeter Property Group paid $39 million this month. The second property at 1002 S. 63^rd Avenue, known as Estrella Buckeye inside the Estrella Business Park, is a 250,157 square foot distribution facility developed in 1996. Exeter paid $16.9 for the building, which Duke acquired in 2010 for $8.7 million. Both properties were 100% leased at the time of sale.

For more news and information visit Blumberg Partners.

Exeter Sells US Industrial Portfolio for $3.15B

Industrial property specialist Exeter Property Group announced that it has sold a 58 million square foot portfolio of core industrial properties to a joint venture of Henley Holding Company, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and the Public Sector Pension Investment Board (PSP Investments), one of the largest Canadian pension investment managers, for $3.15 billion. Terms of the deal were not disclosed, though press releases noted that Exeter invested in the joint venture and will also continue to manage the purchased properties. Exeter was represented by Fried, Frank, Harris, Shriver & Jacobson LLP and Silverang, Donohoe, Rosenzweig & Haltzman, LLC, while ADIA was represented by Kirkland & Ellis LLP, and PSP Investments was represented by Davies Ward Phillips & Vineberg LLP and Torys LLP.

The deal is one of the largest industrial real estate transactions of the year, with 209 high-quality industrial assets located in 25 key distribution markets throughout the United States, most of which are modern bulk warehouses that provide critical infrastructure supporting both e-commerce and traditional retailers, suppliers and wholesalers. Among the other mega industrial portfolios that traded this year involved Blackstone Group completing an $8 billion sale, Prologis in a $5.9 billion acquisition and Industrial Income Trust selling its properties for 4.5 billion, according to a Philadelphia Business Journal article. The portfolio was marketed by Eastdil Secured and CBRE.

"We are very pleased to have concluded the sale of this exceptional portfolio of industrial properties on behalf of our investors. ADIA and PSP Investments are two of the most highly-regarded international real estate investors, and we are thrilled to work with our new partners in the continued successful management of these properties as well as in other opportunities in the United States and abroad," said Ward Fitzgerald, Chief Executive Officer of Exeter, in a press release.

Neil Cunningham, Senior Vice President, Global Head of Real Estate Investments at PSP Investments, added: "PSP Investments is pleased to have secured this attractive and complex investment opportunity, demonstrating our agility and capacity to move quickly alongside great partners. This investment is consistent with PSP Investments’ real estate strategy to make direct investments in sizeable, core industrial assets in key markets alongside experienced partners who share our long-term investment horizon."

For more news and information visit Blumberg Partners.

Exeter Buys Chicago Area Industrial Portfolio

Avison Young, the Toronto-based commercial real estate services firm, has sold a 900,000-square-foot portfolio in the Chicago industrial market to Exeter Property Group for an undisclosed sum. The four-building industrial portfolio located around the perimeter of Chicago was sold by an Avison Young fund managed by J.P. Morgan Asset Management. Erik Foster and Mike Wilson of Avison Young's national industrial capital markets group handled the transaction, and Foster told GlobeSt.com that the net lease purchase is part of a larger trend.

"We've seen a lot of buyers that need higher returns making purchases in class B submarkets within core markets like Chicago," said Foster. Although each of these properties is relatively new and fully-leased to strong credit tenants, they are located in suburban Monee and Batavia, and in Portage, IN, all part of the greater Chicago market but outside the truly core submarkets like I-55.

The properties in the portfolio include:

• A 246,300-square-foot building at 25777 S. Cleveland Ave. in Monee, IL in the greater Chicago market. The tenant is Liberty Furniture, a privately owned furniture manufacturer with a national distribution base. Built in 2001, the building has 30-foot ceiling heights.
• A 239,700-square-foot facility at 25975 S. Cleveland Ave. in Monee, IL, in the greater Chicago market. DIY Group, a packaging, warehouse and distribution services company, leases 100 percent of the space, built in 2005. The building has 30-foot ceiling heights.
• A 251,465-square-foot building at 1160 Pierson Dr., in Batavia, IL, in the greater Chicago market. The space is leased by DS Containers (193,465 SF), a consumer packaging company, and Superior Health Linens (58,000 SF), a healthcare supply company. Built in 2006, the building has 30-foot ceiling heights.
• A 157,120-square-foot building at 5900 Carlson Ave. in Portage, IN, in Northwest Indiana, considered part of the greater Chicago market. The building was built in 1995, has 29-foot ceiling heights and is leased to Manufacturing Solutions. The tenant is a leading manufacturing and engineering company.

For more news and information visit Blumberg Capital Partners.

Exeter Buys SK Food Warehouse for $21M

Exeter Property Group, a Plymouth Meeting, PA-based real estate investment management firm, has picked up an industrial warehouse in Groveport, OH for $21 million, according to public records. Terms of the deal were not disclosed, but it is known that CBRE Group agents Rick Trott and Michael Mullady led the regional marketing efforts on behalf of the seller, Opus Group.

The Opus Group leased the last of the space this past march to SK Food Group, which occupies 180,000 square feet at the Rickenbacker 7 property within the Opus Business Center in Groveport, according to a Columbus Business First article. Located between Alum Creek Road and Swisher Road, the 496,156-square-foot property at 3301-3361 Toy Road also serves as a distribution facility for Union Supply Group. Building features include a clear height of 36 feet, column spacing of 48 by 50 feet and an ESFR sprinkler system.

Opus has worked the Columbus industrial market since 1994 when it built a 509,000-square-foot, build-to-suit distribution center for appliance maker Whirlpool. It started its first speculative building near Rickenbacker in 1997. It has since built seven distribution centers beyond the former Whirlpool facility with a combined 3.6 million square feet.

For more news and information visit Blumberg Capital Partners.