Northwest Indiana – Industrial Portfolio

The Northwest Indiana portfolio was acquired in June 2024 for $42.5 million from a seller that was liquidating its fund after reaching its hold period. The property consists of two industrial buildings serving manufacturing tenants that benefit from proximity to the Chicago MSA, while operating in Indiana's lower-cost labor and operating environment.

The investment was attractive for three primary reasons: strong in-place cash flow, near-term value-add potential in the smaller building, and longer-term upside in the larger building as rents reset over time.

The portfolio consists of two buildings. The 6750 building houses larger tenants ranging from 48,000 to 173,000 SF, while the 6525 building contains mid-size tenants ranging from 10,500 to 33,000 SF.

The business plan focused primarily on the 6525 building, where tenants were paying an average of approximately $7/SF, significantly below market levels. Underwriting projected achievable rents of $9/SF.

Since acquisition, the team has already executed several leases validating this strategy. Two tenants were either replaced or renewed at rents materially above both in-place rents and underwriting projections.

These leasing achievements have driven a significant increase in asset value, with the property currently valued at approximately $53.25 million.