Brennan Investment Group Expands Chicago Footprint

The company has purchased a 265,000-square-foot industrial property through an off-market leaseback deal.
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Brennan Investment Group has acquired another Chicago industrial property through a sale-leaseback deal with a U.S.-based middle-market manufacturer and distributor. The off-market transaction allows the seller to continue occupying the property under a 10-year lease agreement.

READ ALSO: Big Lots Inks $725M Industrial Sale-Leaseback Deal

The 265,000-square-foot property was built with approximately 20-foot clear ceiling heights, roughly 15 dock doors, 280 parking stalls and the ability for trailer storage. The property is currently being used by the seller, and now tenant, as a space for manufacturing/assembly, research and design, and distribution.

Kevin Brennan, managing principal at Brennan, told Commercial Property Executive that the seller sought an off-market transaction that would offer confidentiality and that would also allow the company to improve its balance sheet.

“We acquired a functional, well-located industrial asset at an attractive purchase price,” Brennan told CPE. “At closing, we benefit from a long-term lease to a strong, global company and the transaction improved the company’s balance sheet, which in turn, further enhanced the credit of our long-term tenant.”

Interest in Chicago industrial

In May 2019, Brennan also acquired a 1.3 million-square-foot industrial property in Chicago with the help of a joint venture partner. Brennan partnered with a client of Arch Street Capital to purchase the distribution facility that has been occupied by hardware retailer True Value Co. since 1998.

Chicago’s industrial market has attracted many other investors recently, as Taurus Investment Holdings purchased a 28-property industrial portfolio for $154 million in May last year. In February, Black Creek Group, who has been growing its portfolio of Chicago industrial properties, acquired a 110,355-square-foot industrial property in the western Chicago suburbs for $8.2 million.

Besides acquisitions, Brennan has also been working on a nearly 1 million-square-foot speculative logistics center in Colorado that includes five industrial buildings. The logistics park will be built in two phases and Brennan broke ground on the first phase in August 2019.