Industrial Real Estate News

GMAC arranges permanent financing

The Pasadena, Calif., office of GMAC Commercial Mortgage Corporation (GMAC) has arranged $2.45 million in permanent financing through Omaha, Neb.-based United of Omaha Life Insurance Company for the Lalchandani Family Limited Partnership, a husband and wife partnership based in Palos Verdes, Calif. The arrangement was made to refinance the existing loan with United of Omaha on a 201,500 sq. ft. industrial building, owned by the Lalchandani Family Limited Partnership, that was built in 1983 and is located at 10515 Railroad Drive, El Paso, Texas.

Tacoma BTS warehouses slated for recycling

Simpson Tacoma Kraft Company, Seattle, will begin construction late this month or early July on the first of two build-to-suit warehouses on approximately 40 acres of the company's 75-acre ownership south of East 11th Street in the Tacoma, Wash., port industrial area. The $59 million project, located on a portion of the former St. Regis sawmill site, purchased by Simpson in 1987, will be used to produce recycled products. Simpson Tacoma Land Company, a subsidiary of Simpson Tacoma Kraft Company, will retain ownership and manage the project.

Construction of the second building will follow shortly. The initial two buildings will contain approximately 350,000 sq. ft. and will represent an investment of over $10 million. Additional development is anticipated depending on demand.

Auto manufacturing plant opens in Kansas City

A 109,000 sq. ft., $20 million auto parts manufacturing plant in Kansas City, Mo., was completed in March by Hazelwood, Mo.-based Clayco Construction Co. for Paris-based Sommer Allibert Industrie. The architect for the building is Paris-based Entienne Nouvellet. Clayco Construction Company was joined in the construction of the building by the Kansas City offices of Fachs Electric and National Fire Suppression, and the St. Louis offices of Universe Products, paneling; Systemaire; Midwest Testing Inc.; Stock & Associates, civil engineering; Kupferer Brothers, structural steel; and Code Consultants Inc.

The building produces bumpers for the complete line of automobiles manufactured at the neighboring General Motors Co. Fairfax production facility.

Assembly plant purchased to house auctions

ADESA Auctions has purchased the Framingham General Motors Assembly Plant as its new headquarters on 150 acres at 63 Western Ave., Framingham, Mass., for $8.15 million. The 2.9 million sq. ft. facility, which is reportedly the second-largest industrial property in New England, is now reported to be the location of the world's largest indoor auto auction facility.

The Boston office of CB Commercial, which represented the buyer, approached the sale by viewing and pricing the GM property as a land transaction, rather than as a huge factory. Negotiations, which involved ADESA, GM, local and state officials and many others, took more than nine months.

Historic build-to-suit emerges in Orange County

A more than 363,000 sq. ft. warehouse/distribution facility in the Warland Cypress Business Center marks the largest industrial build-to-suit transaction in the City of Cypress, Orange County, Calif., in five years. The 10-year lease agreement between Warland Investments Company, a family-owned partnership that is an investment builder with significant holdings in Orange and Los Angeles counties, and Shaw Industries, Inc., a Dalton, Ga.-based carpet manufacturer, allows Shaw to expand its operations and consolidate its existing sites in Santa Fe Springs and the City of Industry.

The 363,000 sq. ft. first phase of construction will be followed by a second phase 75,000 sq. ft. expansion. The 140-employee facility will be Shaw's central distribution center upon completion, servicing California, Nevada and Arizona.

CB Commercial's South Bay office represented both the landlord and the tenant.

First Industrial makes three acquisitions

Chicago-based First Industrial Realty Trust, Inc., reportedly the largest self-advised publicly traded industrial property REIT in the United States, has acquired three industrial properties in two transactions. The first transaction includes a 151,575 sq. ft. bulk warehouse property in Atlanta, and a 77,031 sq. ft. light industrial property in the Chicago suburb of Franklin Park, Ill., for a total of $5.35 million or $23.40 per sq. ft. In the second transaction, First Industrial acquired a 90,250 sq. ft. light industrial property northwest of Chicago in Wheeling, Ill., for more than $2 million, or $22.52 per sq. ft.

The Atlanta and Franklin Park buildings, located at 605 Stonehill Drive and 11241 Melrose Street respectively, are both fully leased to Atlanta-based Leslie-Locke, Inc., a building products manufacturer for the do-it-yourself market. The Wheeling building, located at 280-296 Palatine Road, is 100% leased to seven tenants.

The weighted average yield for these aquisitions is expected to exceed 11% in the first year and increase thereafter.