By Roxana Baiceanu
Plymouth Industrial REIT has expanded its Chicago-area industrial portfolio by adding two manufacturing buildings located in Elgin and Arlington Heights, Ill., to its stock. The single-tenant assets total 270,000 square feet and traded for $15.7 million in cash. The acquisition is projected to provide an average initial yield of eight percent.
Fully occupied assets
The Elgin facility is located at 1600 Fleetwood Drive in North Kane County, one of Chicago’s largest industrial submarkets. It encompasses 236,736 square feet with additional land for potential expansion. It is fully leased to Stamar Packaging until April 2027.
The second asset is located at 3 W. College Drive in Arlington Heights and encompasses approximately 34,000 square feet. It is leased to containerized bins provider Arrow Up for the next six years.
“With both tenants headquartered in the greater Chicago area, we consider these buildings to be more mission-critical in nature. The remaining lease terms provide stable cash flows with the ability to create value through annual rent increases or potential expansion in markets that have historically been targeted for ‘last-mile’ use or benefited from low vacancy and strong space absorption,” said Pendleton White, Jr., Plymouth’s president & CIO, in prepared remarks.
Images via Google Street View