A 51-building industrial portfolio in Illinois and Wisconsin has sold for more than $395 million, extending an onslaught of sales in the high-demand real estate sector.
Westmount Realty Capital recapitalized the 6.1 million-square-foot portfolio in the sale to Ares Management Corporation, the firms said in a statement. Ares replaced Swiss investor Partners Group, which had been Westmount’s investment partner for the nearly fully leased buildings.
The statement did not disclose a sale price, but CoStar data shows the buildings in the Chicago and Milwaukee areas sold for more than $395 million combined on Nov. 3.
That contributed to a record $115.2 billion in industrial sales last year, far above the $69.2 billion volume the previous two years, according to CoStar data. Chicago-area industrial buildings also reached a record sale volume of $7.9 billion in 2020, up from $4.2 billion the previous year. Chicago is a significant market, with 30% of all U.S. freight originating or passing through the area, the firms said.
While many types of properties have seen demand plummet during the pandemic, trends such as accelerating e-commerce business and supply-chain backups have caused demand for U.S. warehouse space to skyrocket.
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