Chicago Investor Acquires Louisiana Industrial Property
On behalf of the Wextrust Receivership, which was charged in September 2008 with fraud for operating a Ponzi-like scheme, Hilco Real Estate LLC and Badger Real Estate Advisors LLC sold their fifth property at the end of last year.
A Chicago investor acquired the 700,000-square-foot industrial property, which is used as a warehouse, distribution and production facility, in Hammond, La., for $25.7 million. The building is 95% leased to five tenants, including Entergy, Dupont Performance Elastomers, Liquid Container, Penske Truck Rental and Victory Packaging. In 2010 the net operating income for the property was in excess of $2.5 million.
“The sale of this asset provided an opportunity to contribute significant proceeds to the receivership,” said Mitchell Kahn, chief restructuring officer for the receivership and CEO of Frontline Real Estate Partners LLC.
Neil Aaronsen, CEO of Hilco Real Estate, said the two largest tenants in the building signed five-year extensions and various capital improvements were made to the property in order to maximize the proceeds for the estate.
“The purchaser was able to take advantage of $23.5 million in assumable CMBS financing, which is difficult to replicate in today’s market place,” Aaronson said.