Midwest industrial assets sold to three investors for nearly $140M

CHICAGO, Feb. 1, 2021 – JLL Capital Markets announced today that it has closed the nearly $140 million sale of 12 industrial assets totaling approximately 3 million square feet in the Midwestern communities of Cleveland, Ohio, and Fort Wayne and Bloomington, Indiana.

JLL marketed the property on behalf of the seller, Raith Capital Partners. Plymouth Industrial REIT, STAG Industrial, Inc. and Legacy Investing, LLC each purchased assets separately.

Plymouth Industrial REIT purchased the 10-building portfolio totaling 2.1 million square feet in the greater Cleveland area. The 90-percent-leased portfolio consists of 3400, 3111, 3081, 3325, 3375 and 3425 Gilchrist Rd. in Mogadore; 4122 Shuffel Street NW and 2100 and 2210 International Pkwy. in Canton; and 1366 Commerce Dr. in Stow. The properties are positioned proximate to Interstates 77 and 76, providing excellent regional access, and most of the properties are within one of the densest industrial markets in the United States.

STAG Industrial, Inc. acquired a single-tenant, 764,177-square-foot, Class A bulk distribution center at 2909 Pleasant Center Rd. in Fort Wayne, Indiana. The property is fully leased on a long-term basis to a leading supplier of parts and components to the recreational vehicle industry. Completed in 1994, the building features a 30-foot clear height, 66 external dock doors, two drive-in doors, 300 trailer parking stalls, ESFR sprinklers and low office finish. The property is situated on 114.36 acres on the northern side of Interstate 469, which allows the tenant immediate access to the region’s interconnected highway network. Additionally, the property is three miles south of the Fort Wayne International Airport.

Legacy Investing, LLC purchased a 125,000-square-foot manufacturing and distribution facility triple net leased to an investment-grade global healthcare and pharmaceutical company on a long-term basis. The mission-critical facility features box-in-box freezer and cooler space, up to 29-foot clear height, five dock-high doors, one drive-in door, office finish and ample parking. The building is housed on 19 acres at 555 N. Daniels Way in Bloomington less than two miles from the tenant’s main campus and proximate to Indiana University. Additionally, the facility is two miles from Interstate 69, which provides regional connectivity.

The Midwest is experiencing a surge in industrial investment, which is detailed in JLL Research’s 2021 Midwest Industrial Outlook report. As warehouse demand continues to rise, Midwest markets are seeing an unprecedented amount of investment from tenants, developers and investors that once may have overlooked the region.

“The Raith team is excited to have completed the sale of the overall portfolio,” said Nelson Hioe, co-founder at Raith Capital. “After owning and operating the properties for several years, our desire to sell was tied to the successful execution of our asset management strategy. We continue to have strong interest in the industrial sector.”

The JLL Capital Markets team representing the seller was led by Senior Managing Director and Co-Head of JLL’s Industrial Capital Markets group John Huguenard, Managing Director Sean Devaney, Senior Director Kurt Sarbaugh and Analyst Peter Moriarty. Managing Director Joe Messina and Vice President David Stecker also assisted on the project.

“We were encouraged by the depth and diversity of the buyer pools, further confirming the positive narrative surrounding the strength of the industrial market,” Huguenard said. “The fundamentals across the Midwest markets justify continued capital deployment in the sector, and JLL is confident that there will continue to be great opportunities to acquire good functional product.” 

“Interest in Midwest industrial product remains extremely strong,” Devaney added. “Through a broad and competitive process, we were able to identify many interested parties, some new to the sector and/or markets, and provide optionality to ownership to help drive the positive outcome. Ultimately, the JLL and Raith teams collectively thought it best to pursue multiple transactions to efficiently transact on the overall portfolio, given the variety of individual deal profiles.” 

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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