2 local industrial portfolios for sale
Chicago Real Estate Daily reports: Two Chicago industrial real estate portfolios totaling more than 4 million square feet are on the market, in what is likely to set a benchmark on local warehouse prices after a long period of tumult in the credit markets.
Denver-based ProLogis has put up for sale a 3.3-million-square-foot collection of properties, including 1.45 million square feet in Elk Grove Village near O’Hare International Airport, sources say. A decision on a winning bidder is expected in about two weeks, sources say.
Meanwhile, San Francisco-based AMB Property Corp. has put up for sale a nearly 1-million-square-foot portfolio, sources say.
Few experts doubt that prices fell in 2008 for industrial real estate, like other sectors. The question has been: How far?
The dollar value of all warehouses sold in the Chicago area last year fell 54%, to $1.06 billion, compared to 2007, according to report by New York research firm Real Capital Analytics. The average price of a Chicago-area warehouse in 2008 was $51 a square foot, compared to $62 in 2007, when the credit crisis began.
Despite the sharp drop in transactions, Chicago remains a top market for investors, second in total sales only to Los Angeles, where warehouses sales fell 51% in 2008, to nearly $1.3 billion, Real Capital said.
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Posted by: Nina Turner