Angelo, Gordon Takes Suburban Cincinnati Industrial Asset
- Jan 20, 2011
Stan Johnson Co., representing both the seller and buyer, has orchestrated the sale of a 335,700-square-foot industrial building at 1700 Carillon Blvd., in Forest Park, Ohio, a Cincinnati suburb. Cincinnati United Contractors Inc. sold the property, currently occupied in its entirety by keys and signs distributor The Hillman Group, to Angelo, Gordon & Co.
According to a commercial real estate professional familiar with the suburban Cincinnati industrial market, 1700 Carillon Blvd., located at the Carillon Business Park, fetched $16.5 million. CUC originally developed the property for Hillman as a 109,000 square-foot build-to-suit in 2001 at a cost of $3 million, and completed the warehouse’s expansion to its current size in 2005. With the sale of the property finalized, CUC plans to redeploy its equity.
“The main challenge of this transaction was recasting the existing lease to add term and bringing it into conformance with institutional ownership standards,” said Craig Tomlinson, director of investment sales with Stan Johnson Co., in a prepared statement. “In that sense, it was really a three-way negotiation with buyer, seller and tenant.”
Industrial sales activity has increased in the greater Cincinnati market, according to third quarter 2010 report by Cassidy Turley. However, with closures and downsizings having plagued the market since the onset of the economic downturn, more than a few transactions have involved vacant or sparsely leased properties. During the third quarter, CECO Environmental Corp. sold its 250,000 square-foot plant for a reported $3 million and decreased its occupancy to just 30,000 square feet, and the long-vacant 254,000 square-foot Georgia Pacific building finally sold for just over $3 million.
But occupancy levels are on the rise. The vacancy rate dropped to 9.6 percent in the third quarter last year from 10.3 percent in the first quarter of 2010.