Baltimore, MD (August 9, 2007) – Alex. Brown Realty (ABR), a national real estate investment company, has entered into a joint venture with Sydney Partners, LLC (Sydney) to acquire the Kitley Industrial Park in Indianapolis, Indiana. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $2.25 million to the venture. Equity capital was arranged by Matt Schoenfelt of the Chicago offices of Holliday Fenoglio Fowler, L.P.
The Kitley Industrial Park, constructed between 1965 and 1970, includes three warehouse/distribution buildings totaling 363,750 square feet. Located east of downtown Indianapolis at 250-258 Kitley Avenue, the park enjoys easy access to Interstate 495, the Indianapolis beltway. The one-story concrete buildings offer 26’ clear heights with 33’ by 37’ column spacing. Each building is also served by active railways.
Existing tenants include large, high-credit companies such as Fed Ex, CVS, and Commodity Logistics. At closing, 81,250 square feet was vacant. That space has now been leased to MS Logistics.
ABR and Sydney acquired the park at a substantial discount to replacement cost from a large, national real estate firm that had recently shifted its focus to Class A industrial distribution facilities. “We see a tremendous opportunity to add value to the park – – and with minimal associated risk given the in-place cash flow and favorable debt terms,” commented Tom Burton, ABR’s chief investment officer. Burton noted that the essentials – – a good location and healthy market fundamentals were already in place. He further stated that “we are now focusing on asset management, which can be enhanced significantly by implementing a flexible, hands-on management approach.”
This is the first joint venture between ABR and Sydney Partners, a Chicago-based real estate investment firm. The two firms intend to expand their working relationship by acquiring a portfolio of small to mid-sized industrial properties located throughout the Midwest.
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
Sydney Partners, LLC (Sydney) is a Chicago based private real estate investment firm focused on value-added industrial real estate investments throughout the United States. The firm was founded by Anthony J. Burns and Jeffery M. Josephs in 2006.