Baltimore, MD – Alex. Brown Realty (ABR), a national real estate investment company, has acquired 545 Algonquin Industrial Park in suburban Chicago, Illinois in joint venture with Sydney Partners, LLC (Sydney), a Chicago-based real estate investment firm. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $2.9 million to the venture. The debt and equity capital was arranged by Matthew Schoenfeldt of the Chicago offices of Holliday Fenoglio Fowler, L.P.
This is the third in a series of transactions between ABR and Sydney, which are assembling a portfolio of small to mid-sized industrial properties located throughout the Midwest. With leverage of approximately 65%, the two firms expect the portfolio would have a total investment capacity of approximately $70.0 million. Prior to acquiring Algonquin, the joint venture acquired Kitley Industrial Park, a 365,750-square foot industrial park in Indianapolis, Indiana, and Merchants Distribution Plaza, a 260,000-square foot industrial park in Des Moines, Iowa. “The acquisition of Algonquin is consistent with our goal of building a substantial portfolio in the Midwest and in particular the Chicago market place,” commented Jeff Josephs, Sydney’s principal and co-founder. “We will continue to look for sound investment opportunities, especially during this turbulent period in the capital markets.”
Algonquin lies within the Northwest Cook submarket, which is approximately nine miles northwest of the Chicago O’Hare International Airport. Occupancy at the 111,355 square foot, single-story flex/industrial property is currently 80%.
“We are excited by the opportunities Algonquin presents,” commented Tom Burton, ABR’s chief investment officer. “We’ve acquired a highly-functional property at well below replacement cost in a supply-constrained submarket that continues to see demand for flex/industrial space increase given its proximity to Chicago O’Hare International Airport.” continued Burton, who expects that occupancy will increase with the completion of key capital improvements and the addition of Chicago-based Sydney as the property manager.
“We’re pleased to expand our relationship with Sydney,” commented John Prugh, ABR’s president and chief executive officer. “Algonquin’s location, modest leverage, and in-place cash flow makes it a great addition to our Midwestern industrial portfolio and should ultimately help establish the portfolio as an attractive acquisition candidate for institutional investors.“
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 2007. www.sydneypartners.com
Holliday Fenoglio Fowler, L.P (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital market services to the US commercial real estate industry. HFF offers clients a fully integrated capital market platform, including debt placement, investment sales, structured finance, private equity, note sales and note sales advisory services, and commercial loan servicing. www.hfflp.com