Chicago Industrial Portfolio Commands $154M

In one of the metro’s largest such deals this year, Venture One sold a collection of 28 properties across 11 of the metro’s 19 submarkets.

Chicago industrial portfolio. Image courtesy of Taurus Investment Holdings

A 28-property industrial portfolio in Chicago has changed ownership, marking one of the city’s largest transactions in 2020 so far. Taurus Investment Holdings has acquired the portfolio from Venture One for $153.5 million.

READ ALSO: Keeping Ahead of Industrial Demand

The more than 1.9 million-square-foot portfolio spans 11 of Chicago’s 19 submarkets and is 98.1 percent leased to 46 tenants. The list includes international, national, regional and local firms like food packaging manufacturer Pactiv, aerospace electronics provider Astronics and promotional products distributor Overture.

Lathan Allen, managing director of U.S. industrial at Taurus, said in prepared remarks that last-mile logistics in large population centers are a high priority for their investment strategy. Allen added in a prepared statement that the Chicago portfolio had strong tenant and geographic diversification, with locations that were outperforming the larger market.

Taurus’ CEO & Managing Partner of Investment Holdings Peter Merrigan said in prepared remarks that the industrial sector is still one of the highest performing asset classes, with further growth expected. The industrial sector continues to lead the pack of commercial property types and Chicago ranked in the top five markets for demand and supply for 2020 through 2021, according to a Cushman & Wakefield report.

While Venture One sold the 28 properties, the Chicago-based firm will continue to manage the portfolio. Capital One provided the debt financing for the acquisition.

Big buys in industrial market

The 28-property portfolio marks the second time in nearly two years that Taurus acquired one of the largest Chicago portfolios of that year. In June 2018, the investment firm purchased a 51-property industrial portfolio in Chicago for $201 million. Taurus also partnered with Venture One in the 2018 Chicago acquisition.

Taurus’ large portfolio transactions also include the firm selling a 95 percent stake in a 117-building portfolio across Atlanta, Chicago, Dallas, Charlotte, N.C. and Memphis, Tenn., to Investcorp for $614 million in November.

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