Baltimore, MD – A joint venture owned by Alex. Brown Realty (ABR) and Biynah Industrial Partners, LLC (Biynah), a Minneapolis-based real estate investment firm, has acquired the Hazelwood Logistics Center in St. Louis, Missouri. ABR Chesapeake Fund IV (Fund IV), a value-added real estate fund sponsored by ABR, invested $4.5 million in the venture.
The Hazelwood Logistics Center is a 406,024 sf bulk warehouse facility located in the airport submarket of St. Louis, Missouri. The building has 32’ clear heights, 40 loading docks, 4 drive-in doors, 66 trailer parking spaces and is cross-docked with tenant entry points on each corner.
The property was developed on a speculative basis in 2008 and had been vacant since completion. “Prior to closing, we secured a long-term lease for 50% of the building,” said Jeff Josephs, Biynah’s co-founder and managing principal. “With this lease in place, we have sufficient income to cover the building’s operating expenses and debt service and the flexibility to lease the remaining vacant space to a single user or multiple tenants — enhancing the value of the asset.”
The property was acquired directly from a construction lender who had taken possession via a deed-in-lieu of foreclosure. The joint venture was able to purchase the property directly from the original construction lender, paying less than 50% of the original developer’s basis in the property. “This transaction perfectly illustrates the opportunities available in today’s market to capitalize on lender distress,” commented John Prugh, President of ABR.
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 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