GLP's New $4.5B 100 Property Industrial Portfolio

Global Logistics Properties (GLP), a leading provider of modern logistics facilities in China, Japan and Brazil, announced this week that it had completed the acquisition of a $4.55 billion portfolio from Industrial Income Trust (IIT), creating one of the largest real estate deals this year. The deal will be closed over the course of 100 separate transactions and result in GLP owning 100% of IIT's portfolio, and ITT officially merging with Western Logistics II LLC, an affiliate of GLP.

"This transaction complements our existing portfolio well, expanding GLP's size and scale in the U.S.," GLP's Chief Operating Officer Stephen Schutte said in a press release. "We feel particularly good about the quality and location of the facilities, which have an average building age of 15 years and a strong concentration in major distribution markets. We are excited about the synergies the combined portfolio is expected to generate and see upside potential from increasing occupancy and rents."

The portfolio comprises 58 million square feet of state-of-the-art, in-fill logistics assets spread across 20 major markets. The largest markets include Los Angeles, Metro D.C. and Pennsylvania. The portfolio was 93% leased as of 30 June 2015, with a weighted average lease expiry of nearly 5.5 years. GLP says the transaction enlarges GLP’s US footprint by 50% by 173 million sq ft, making GLP the second-largest property owner and operator in the US within a year of market entry. The deal comes just months after GLP made its first entrance into the US market with the acquisition of IndCor Properties this past May.

For more news and information visit Blumberg Partners.

TN Industrial Properties Sold for $50M

Panattoni Development Co., a Newport Beach, CA-based real estate company with projects in more than 278 cities throughout the United States, Canada and Europe, has sold three warehouse buildings it developed in Lebanon and Murfreesboro for $50 million. Panattoni sold the properties to Denver-based Industrial Income Trust; broker Dave McGahren of Cassidy Turley managed the listing, but terms of the sale were not disclosed. The deal marks the largest industrial property sale in the Nashville area so far in 2013, according to a Tennessean article.

In Lebanon, Panattoni sold buildings 3 and 4 at its Commerce Farms industrial park off Highway 109. Tenants include tiremaker Bridgestone and logistics firm Jacobson Companies. It also sold its Elam 2 building at Elam Farms in Murfreesboro; tenants there include Intermetro Industries and the Department of Veterans Affairs.

For more news and information visit Blumberg Capital Partners.

IIT Buys Chantilly Business Center II for $17.5M

Industrial Income Trust (IIT), a non-traded real estate investment trust (REIT) that acquires and operates high-quality distribution warehouses and other industrial properties, acquired Chantilly Business Center II this week for $17.55 million. Transwestern brokered the sale of the 160,000 square foot Class A warehouse on behalf of Principal Life Insurance Company.

"This was a rare opportunity to buy a trophy asset in the Chantilly Industrial market," said Mark Glagola, Transwestern broker. "There was significant investor interest and in the end, we were very pleased with the pricing results." The fully leased warehouse at 3920 Stonecroft Boulevard in Chantilly, VA was originally constructed in 1996 and is situated on 15 acres. According to Fairfax County records, the property previously sold in April 1999 for 8,600,000, and for $1,413,418 before that in 1996.

For ore news and information visit Blumberg Capital Partners.