REIT Takes 595,000-SF Chicago-Area Distribution Center
- Jan 27, 2009
Making its entry into the Chicago-area market, US Industrial REIT II, which is owned by an affiliate of USAA Real Estate Co. and other institutional investors, has acquired the Cinram Distribution Center, a 595,000-square-foot facility located within the Meridian Business Campus in Aurora, Ill. The REIT purchased the property for an undisclosed price from Cinram Distribution L.L.C., a Canada-based manufacturer of DVDs, CDs and computer software. It was unclear at press time as to whether the deal was a sale-leaseback.“We’re very please to be adding this quality asset to the US Industrial REIT II portfolio,” said Pat Duncan, chairman & CEO of USAA Real Estate, noting that the purchase marks the REIT’s first acquisition in the Chicago-area industrial market. Built in 1997, Cinram Distribution Center is cited within the 660-acre mixed-use Meridian Business Center, in close proximity to several major highways and the Burlington Northern Railroad. The acquisition also included the purchase of 11.7 acres of land adjacent to the facility. US Industrial REIT invests in bulk distribution centers across the Unites States, primarily those in the 250,000-square-foot or larger category. Parent company USAA Real Estate is a provider of co-investment, acquisition, build-to-suit and development services for corporate and industrial investors. The firm currently has more than $5 billion is assets under management.