Alex. Brown Realty, Inc. (ABR) and Biynah Industrial Partners, LLC (Biynah) announce the acquisition of the Minneapolis Area Industrial Portfolio located in Minnesota and Wisconsin. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $16.3 million in the joint venture.
The Minneapolis Area Industrial Portfolio consists of three single tenant industrial buildings totaling 1,246,827 sf located in: (1) Lino Lakes, Minnesota, (2) Menomonie, Wisconsin, and (3) Marinette, Wisconsin. The portfolio is 100% occupied with an average remaining lease term of greater than four years.
The portfolio was acquired from separate ownership groups in two transactions. “The opportunity to compile a portfolio from two separate sellers provides for staggered lease rollover, which should mitigate the risks typically associated with single tenant buildings,” stated Jeff Josephs, Biynah’s co-founder and managing principal. The Minneapolis Area Industrial Portfolio represents the ninth transaction between ABR and Biynah.
“This is an attractive value-add opportunity to acquire high-quality industrial assets at a substantial discount to replacement cost,” stated Tom Burton, ABR’s chief investment officer. Burton also noted that the portfolio’s strong tenant base and positive in-place cash flow made the acquisition all the more appealing.