Iowa industrial portfolio sells for $54M making it the largest industrial sale in state history
JLL arranged for the sale of the 1.4 million-square- foot portfolio in Easter Iowa
DES MOINES, IOWA, June 22, 2021 — JLL announced today that it has closed the $54 million sale of a 1.4 million-square-foot industrial portfolio located in eastern Iowa. This transaction marks one of the largest industrial portfolio sales for the state in both size and value.
JLL marketed the portfolio on behalf of the seller, 2570 Independence LLC, which sold the assets to an undisclosed buyer.
The Class B portfolio consists of five buildings that were constructed in the early 2000s. Three buildings are located in Iowa City at 2561, 2570 and 2610 Independence Road totaling 992,250 square feet and 48.92 acres, while the fourth and fifth buildings are located in Cedar Rapids at 5404 and 5507 Ely Road totaling 410,000 square feet and 21.2 acres.
“Based on the locations, sizes and growing need for warehouse space throughout the region, we knew we had an opportunity to position this portfolio as a desirable option for a variety of users,” said JLL Vice President Michael Minard. “With construction costs increasing and the market experiencing a gap between second-generation and new space, owners of high-quality Class B properties have an opportunity to capitalize on adjusted rent increases to keep up with new construction.”
According to JLL’s most recent Des Moines Industrial Insight report, construction prices are on the rise due to the supply chain constraints associated with obtaining building materials through the U.S. as a result of the pandemic. This is forcing developers to closely monitor their costs to see if projects will be feasible at current market rates.
Currently 80 percent occupied, JLL’s Managing Directors Marcus Pitts and Justin Lossner, and Vice Presidents Michael Minard and Austin Hedstrom took over the leasing assignment in August 2020 and closed on the sale less than a year later. Selected by new ownership to continue the leasing agreement, JLL anticipates the portfolio will be fully occupied by the end of 2021.
Marking one of the largest industrial portfolio sales in Iowa state history in the past 10 years, JLL’s Des Moines team was also responsible for one of the largest area apartments sales in the state in 2020 on behalf of BBK Apartments totaling $56.75 million.
For more information, visit jll.com/des-moines
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.