Baltimore, MD – A joint venture organized by Alex. Brown Realty (ABR) and Biynah Industrial Partners, LLC (Biynah) has acquired the Great Lakes Industrial Portfolio in Cleveland, Ohio. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $8.3 million in the venture.
The Great Lakes Industrial Portfolio includes nine Class A buildings totaling 766,477 square feet spread over four locations in Cleveland’s South, Southeast, and Southwest submarkets. All four locations have excellent access to the major interstates, including I-271, I-480 and I-80. Occupancy within the portfolio is fully stabilized and the rent roll is dominated by national credit tenants.
“We like the fundamentals of this deal—quality assets, submarket diversification, and a strong and stable tenant base,” commented Jeff Josephs, Biynah’s co-founder and managing principal. Josephs noted that the existing leases have at least five years of remaining term and that more than 80% of the existing tenants have made significant capital improvements to their space.
The joint venture successfully acquired the portfolio at a substantial discount to replacement cost. “Given our low basis and the in-place income, our investment should yield strong cash on cash returns from day one,” commented Tom Burton, ABR’s chief investment officer. Burton also noted that the financing arranged by ARES Real Estate gives the joint venture the flexibility to sell off individual buildings. “That flexibility will undoubtedly enhance our exit strategy.”
“ABR has had a long and successful relationship with Jeff Josephs and Biynah,” commented John Prugh, president and CEO of ABR. “We have confidence in their ability and are pleased to be partnering with them once again.” The Great Lakes Industrial Portfolio represents the eighth transaction between ABR and Biynah.
Alex. Brown Realty (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 a Minneapolis-based real estate private equity firm focused on the U.S. industrial real estate sector. Since 1996, the firm’s principals have conducted over $2 billion in commercial real estate acquisitions under different sponsorship. www.biynahpartners.com