Brennan, Arch Street Buy Multi-State Industrial Portfolio

Progressive Converting Inc. is the sole occupant of the three properties, which are located in the Green Bay, Wis., and Scranton, Pa., metropolitan areas.
2430 E. Glendale Ave.
2430 E. Glendale Ave. in Appleton, Wis.

Brennan Investment Group and an institutional client of Arch Street Capital Advisors have added approximately 500,000 square feet to their joint venture holdings. The partners recently acquired a three-property portfolio, located in Wisconsin and Pennsylvania. Progressive Converting Inc. occupies the portfolio in its entirety.

Brennan hasn’t publicized the identity of the seller; however, the company confirmed to Commercial Property Executive that the transaction was not a sale-leaseback arrangement with Pro-Con.

The portfolio assets include the paper converting company’s suburban Green Bay corporate headquarters at 2430 E. Glendale Ave. in Appleton, Wis., as well as a manufacturing facility just across the street 2441 E. Glendale Ave. Completing the group is a manufacturing building at 9 Maplewood Drive in Hazleton, Pa. “The properties are located in strong manufacturing areas in top 100 U.S. markets and are mission critical facilities for the tenant,” Scott McKibben, chief investment officer at Brennan Investment Group, said in a prepared statement.

Partnership purchases

Brennan and Arch Street financed the Pro-Con portfolio purchase with proceeds from their $300 million net leased joint venture, which targets the full range of industrial property types. Beyond the aforementioned location requirement, the partners’ list of criteria for potential acquisitions includes a minimum 13-year remaining lease term and significant facility investment by the tenant.

The Brennan-Arch Street joint venture transactions in 2018 include a 2.3 million-square-foot, four-building national portfolio, acquired in a sale-leaseback transaction with building and industrial products distributor BlueLinx Corp. in February. In the last half of 2017, the joint venture purchased industrial properties totaling more than 3.9 million square feet across the U.S.

Brennan and Arch Street have established more than a few joint ventures over the years. Since 2011, the companies have bought in excess of $1 billion of net leased industrial assets.

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