Brennan Investment Group LLC, a Chicago-based private real estate investment firm, has formed a joint venture with TriGate Capital LLC, Dallas, to purchase industrial properties across the nation.
Jay Henry, managing member of TriGate Capital, said "This venture will take advantage of the compelling investment opportunities available today for experienced commercial real estate owner/operators with available, discretionary capital to recapitalize assets at attractive valuations."
The joint venture's first acquisition is an Austin, Texas 137,635 square foot industrial portfolio, purchased from Unum Group, the lender which foreclosed on the properties. The portfolio consists of three buildings located in three separate submarkets and is approximately 76% leased to 11 tenants. The deal was financed through a mortgage loan from Aetna, the terms of which were not disclosed.
"The Austin industrial market is extremely attractive due to its strong job and population growth combined with physical and regulatory constraints on new supply," said Troy MacMane, Brennan's managing principal for Texas. "Our plan for the Austin portfolio is to implement immediate capital improvements to enhance its attractiveness to prospective tenants, and aggressively lease the vacant space. We are seeing improvements in both short-term and long-term fundamentals in the Austin market that should lead to strong risk-adjusted returns."
