March 22, 2019
Dallas – Transwestern Investment Group (TIG®) today announces it has sold a 3.5 million-square-foot industrial portfolio on behalf of one of its discretionary investment funds, TSP Value and Income Fund I. An institutional foreign buyer acquired the 21 logistics facilities spanning Illinois, Ohio, Indiana and Kentucky.
“This sale confirmed TIG’s strategy to acquire smaller portfolios of high-quality warehouse assets to construct a larger, homogenous, multimarket industrial portfolio that would achieve efficient exit pricing in a single transaction”, said Scott Fitzgerald, Executive Managing Director at TIG. “The key was aggregating a highly functional, well-leased portfolio of infill bulk warehouse product that has seen significant user demand driven primarily by the e-commerce sector.”
The portfolio includes four buildings in Chicago, two buildings in Cincinnati, 12 buildings in Columbus, two buildings in Indianapolis, and one building in Louisville. TIG added significant value to the portfolio by completing capital improvements, increasing the weighted average lease term, and raising the net operating income by nearly 20 percent during its ownership. Collectively, the assets were 91 percent occupied at the time of the sale. The portfolio ranged from small bay to large distribution facilities and included single-tenant and multitenant buildings.
The national industrial market continues to outperform in response to unprecedented demand. While nearly 1 billion square feet of new inventory has delivered in the past three years, the year-end vacancy rate was 4.7 percent, less than half of the post-recession high of 9.5 percent in 2010, according to Transwestern’s research on the national industrial market. Of the 47 markets Transwestern tracks, more than 90 percent experienced year-over-year rent growth, and all but four markets posted positive net absorption for the year.
James Carpenter, Adam Tyler and Mike Tenteris of Cushman & Wakefield provided disposition services.
ABOUT TRANSWESTERN INVESTMENT GROUP
Transwestern Investment Group (TIG®) is an investment adviser serving a broad range of clients through a diversified array of discretionary and non-discretionary investment vehicles. With $4.5 billion of assets under management as of year-end 2018, our client-focused, relationship-driven approach is built upon trust, integrity and transparency. TIG provides tactical investment management with an integrated operating platform through the Transwestern enterprise, which includes a diversified real estate services firm with 34 U.S. offices and a prominent commercial development company. For more information, visit transwesterninvest.com.
This document does not constitute an offer, solicitation or recommendation to sell or an offer to buy any securities, investment products or investment advisory services. Any offer or solicitation will be made only pursuant to a confidential private placement memorandum and subscription documents (the “Offering Materials”) and will be subject to the terms and conditions contained in such Offering Materials.
The clients included in this press release were not selected based on performance, but because they are some of the largest well-known clients with similar strategic alliances. It is not known whether these clients approve or disapprove of TIG or the services or products it provides.