Minneapolis-Area Logistic Centers Command $26M
- Dec 28, 2018
Cabot Properties Inc. has acquired a two-building, core-plus, Class A logistics portfolio in Rogers, Minn., totaling 386,295 square feet, for $26.1 million from The Meritex Company.
The two buildings include 12999 Wilfred Lane, located about 25 miles from downtown Minneapolis. CBRE Capital Markets facilitated the deal.
“The offering received a very positive response from high profile capital sources supporting a renewed interest in the Rogers submarket from institutional industrial investors,” said Judd Welliver, CBRE’s senior vice president, in a prepared statement. “This is a re-entry into Minneapolis for Cabot and allows Meritiex to reposition its industrial portfolio for continued growth in development and newer generation properties.”
CBRE’s team representing the sellers in the deal also included Ryan Watts, Sonja Dusil and Tom Holtz.
Both properties in the portfolio feature 32-foot clear institutional quality space. At the time of the deal, the Class A buildings were 88 percent leased.
Logistics Are Strong
In JLL’s most recent U.S. industrial market statistics, trends & outlook report, the industrial market throughout the U.S. continues the momentum seen in the first half of 2018, with annual rental increases of 6.3 percent.
CBRE’s third quarter Midwest Industrial MarketView Snapshot noted new construction activity is strong in the industrial segment, with 40.2 million square feet completed in 2018 year-to-date.
In September, Cabot Properties acquired Bridge Point 290 Business Park, an 899,278-square-foot, three-building industrial property in the Chicago area from Bridge Development Partners and its joint venture partner, Banner Oak Capital Partners.
Image courtesy of CBRE