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News release

CHICAGO, IL

Jones Lang LaSalle Closes $99.5M Sale of 2.7 MSF Midwest Distribution Portfolio

Welsh Property Trust purchased the five-building offering from KTR Capital


CHICAGO, Feb. 20, 2013 — Jones Lang LaSalle’s Capital Markets experts today announced the firm has closed the sale of the Core Midwest Distribution Portfolio, a five-building, 2,711,183-square-foot offering, on behalf of KTR Capital Partners. Welsh Property Trust purchased the portfolio for $99.5 million.  The buildings, that are 94-percent leased to six tenants, are located in Chicago, Indianapolis, Indiana, Cincinnati, and Columbus, Ohio.

International Director John Huguenard SIOR, CCIM, and Executive Vice President Peter Harwood led the Jones Lang LaSalle team on this transaction.

“This offering represented a rare opportunity for Welsh Property Trust to acquire five debt-free, newer built industrial facilities in one transaction – one that will allow them to complement their existing portfolio and provide an immediate presence in primary distribution markets,” said Huguenard.  “The portfolio has been extremely well maintained by committed institutional ownership and requires minimal capital improvement in the near term.  Coupled with below-market rental rates, upside potential is significant.”

“This portfolio is located in four of the top industrial distribution markets in the Midwest.  Each building has access to some of the nation’s top rail and distribution hubs, connectivity to major Midwestern transportation routes and direct access to high concentrations of the U.S. population,” added Harwood.

Each of the five buildings was constructed between 2006 and 2007 as single-tenant facilities with ability to easily accommodate multiple tenants.  The portfolio features 30- to 32-foot clear ceiling heights, ESFR sprinkler systems, above-average loading and abundant auto and trailer parking.  They include:

  • 535 Shingle Oak Drive, West Chicago, IL, is a 150,000-square-foot, fully leased property situated on an 11.68-acre site.  It features 30-foot clear ceiling heights, 18 dock doors (expandable to 30), six drive-in doors and parking for 152 cars and 63 trailers.  McCollister’s Transportation System, Inc. is the building’s sole tenant.
  • 1105 East Northfield Drive, Brownsburg, IN, is a 526,200-square-foot, fully leased property situated on a 28.31-acre site.  It features 32-foot clear ceiling heights, 76 dock doors (expandable to 115), three drive-in doors and parking for 162 cars and 30 trailers.  Krunchers Kettle Cooked Potato Chips, and LifeScience Logistics are the building’s tenants.
  • 40 Logistics Boulevard, Walton, KY, is a 543,512-square-foot, fully leased property situated on a 33.86-acre site.  It features 32-foot clear ceiling heights, 59 dock doors, three drive-in doors and parking for 582 cars and 67 trailers.  GSI Commerce Solutions is the sole tenant.
  • 6766 Pontius Road, Groveport, OH, is a 754,000-square-foot, 78.8 percent leased property situated on a 41.6-acre site.  It features 32-foot clear ceiling heights, 86 dock doors, four drive-in doors and parking for 502 cars and 157 trailers.   Honeywell International is the sole tenant, with 594,000 square feet.
  • 3051 Creekside Parkway, Obetz, OH, is a 737,471-square-foot fully leased property situated on a 37.15-acre site.  It features 32 clear ceiling heights, 75 dock doors (expandable to 179), six drive-in doors and parking for 506 cars and 220 trailers. Zulily, Inc. is the sole tenant.

KTR Capital Partners
KTR Capital Partners is a real estate private equity fund manager and operating company specializing in the industrial property sector. Headquartered in New York City with offices in Philadelphia, Chicago, Miami, Las Vegas and Los Angeles, KTR manages a series of discretionary value-add investment funds that target opportunities throughout major markets in North America. KTR’s current investment vehicles provide approximately $4.5 billion of investment capacity. For further information go to www.ktrcapital.com.

About Welsh Property Trust
Welsh Property Trust (WPT) is a privately owned, real estate investment company focused on the ownership and operation of industrial properties in key distribution markets in the United States.

Welsh Property Trust (WPT) is on the leading edge of a small group of industrial real estate investment firms that blend knowledge, compliance and institutional best practices with flexibility, entrepreneurial creativity and responsiveness to give investors and partners a dynamic operating platform with proven results.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2011 alone, Jones Lang LaSalle Capital Markets completed $60 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $52 billion in global investment sales and buy-side transactions, equating to nearly $216 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its total Capital Markets volumes by 122 percent in 2011 and is quickly gaining market share across all property types. The firm’s Capital Markets team comprises more than 1,200 specialists, operating all over the globe.

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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management. For further information, visit www.jll.com.