With $112M Sale, DCT Industrial Exits Columbus Market
- Oct 28, 2014
In a transaction that marks its departure from the Columbus, Ohio market, DCT Industrial Trust of Denver has sold a 3.5 million-square-foot portfolio to Exeter Property Group for $112.1 million, the REIT announced Monday.
“The disposition of these assets is a significant milestone in repositioning DCT Industrial’s portfolio in major U.S. distribution markets and reducing the numbers of markets in which it operates,” DCT said in a statement.
“Exiting the [Columbus] market has been a key goal of ours for some time, and will allow us to continue focusing our people and capital in markets where we have a stronger competitive position and more opportunities to deploy capital into acquisitions and new development,” DCT Industrial CEO Phil Hawkins told Commercial Property Executive.
DCT Industrial was represented in the sale by Michael Caprile of CBRE Group Inc.
The REIT was unable, presumably for contractual reasons, to supply information about the properties in the portfolio. Exeter Property could not be reached yesterday for additional details.
DCT Industrial specializes in the acquisition, development, leasing and management of bulk distribution and light industrial properties in high-volume distribution markets. As of June 30, it owned interests in about 74 million square feet of properties leased to approximately 900 customers.
This appears to be an excellent time to buy industrial properties, or to get a good price by selling them, in metro Columbus, according to figures in a third-quarter report by Cassidy Turley.
Vacancy rates in both the overall market (3,003 properties totaling about 264 million square feet) and in larger bulk warehouse assets no more than 15 years old (123 buildings totaling 56 million square feet) are at all-time lows of 7.06 percent and 4.52 percent, respectively.
About 2.5 million square feet of industrial space is under construction, and year-to-date absorption is about 4.2 million square feet.
Of note, the Cassidy Turley report cites Exeter Property’s $21 million recent purchase of a 496,000-square-foot building at 3301-3321 Toy Road in Groveport among the market’s significant industrial transactions .