Alex. Brown Realty, Inc. and Biynah Industrial Partners Acquire Class A Indianapolis Industrial Portfolio
Contact: Thomas R. Burton
Baltimore, MD (January 20, 2010) - Alex. Brown Realty, Inc. (ABR), a national real estate investment company, has acquired the North by Northwest industrial portfolio in suburban Indianapolis, Indiana in joint venture with Biynah Partners, a Minneapolis-based real estate investment firm. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $6.9 million to the venture. Jon Goldstein of Cassidy & Pinkard Colliers arranged financing for the acquisition.
The Class A industrial portfolio encompasses approximately 1.1 million square feet spread out among seven industrial buildings all located within northwest Indianapolis’ Park 100 industrial submarket. The Park 100 submarket is accessible via I-465 and I-65 and is less than 14 miles from the Indianapolis International Airport and 8 miles from downtown Indianapolis. Vacancy in the submarket is currently 6.5%.
“This was a relationship deal from all facets of the acquisition and I believe it exemplifies the type of transactions that will be completed during the current market turmoil.” commented Jeff Josephs, Biynah’s managing principal. “Working with a great partner, we have acquired a highly-functional industrial portfolio at an excellent basis and with attractive debt terms in a very strong industrial submarket.” Josephs also noted that the portfolio includes a balanced mix of mid-size flex industrial and modern bulk warehouse space and that the largest tenant occupies only 11% of the portfolio’s available square footage.
The joint venture also sought to mitigate near-term tenant rollover risk. “As a condition to closing, the seller completed lease renewals for four tenants who collectively represent 22% of the portfolio’s total square footage,” commented Tom Burton, ABR’s chief investment officer. “Eliminating that roll-over risk is a great benefit in today’s challenging operating environment.” In addition to having all near-term lease renewals completed, Burton also noted that leases covering 25% of the portfolio have terms with at least seven years remaining.
“North by Northwest’s excellent location, modest leverage, and in-place cash flow make it a great addition to ABR Chesapeake Fund III’s portfolio,” concluded John Prugh, ABR’s president and CEO. “We’re pleased to work once again with Jeff Josephs and his team and to expand our presence in Indianapolis.” North by Northwest is the fifth investment by ABR Chesapeake Fund III in the Indianapolis area.
Alex. Brown Realty, Inc. (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Biynah Industrial Partners, LLC (Biynah) is Minneapolis-based real estate private equity firm focused on the U.S. domestic industrial real estate sector. Since 1996, the firm’s principals have conducted in excess of $2 billion in commercial real estate acquisitions under different sponsorship. www.biynahpartners.com